Door Dash, Uber Eats biggest US competitor, files for IPO at $32 billion valuation

Door Dash is a US. food delivery platform , it provides the same service as Uber Eats. It was started in 2013 by 4 Stanford University students. Door Dash now controls 49% of the meal delivery sales in the country as of September, it’s closest competitor is Uber Eats with 22% and GrubHub with 20%. Despite its dominate lion share market presence, it’s the only one of the three that hasn’t gone public. That changed on Monday when the startup filed for an IPO.

The numbers align well with the move to go public, Door Dash has 1 million Dashers (delivery workers) and 18 million customers. Their business has been booming during the pandemic with many people not able to frequent their favorite restaurants, they have no choice but to order food deliveries, this translated to revenue growing 226% in 2020. Their revenue was still in the upward trend years prior, in 2018 Door Dash hit $291 million, in 2019, it rose to $885 million and this year, they recorded $1.95 billion as of September.

The IPO filling comes at a time when food delivery services have surpassed traditional cab hailing business, like in the case of Uber, the company saw bigger revenues from the Eats sector ($885 million) than in their traditional taxi venture ($793 million). Their other competitor, GrubHub, already went public and saw their stock price rise by 49% this year.

In May this year, Door Dash raised $600 million which valued the company at $12.6 billion. Today, with the IPO, the startup hopes to raise $2.8 billion giving it a valuation of upto $32 billion in a fully diluted basis. It plans to list 33 million shares at a price between $75 and $85 per share. The shares will go on the New York Exchange with the symbol DASH.

Tony Xu, the CEO, recognizes the ease of customers changing food delivery services, in response to that, they hope to delve into in demand logistics platform.