Food delivery app DoorDash makes its public debut Wednesday.
Shares of DoorDash, a leading food delivery app, surged in its market debut on the New York Stock Exchange on Wednesday. The company priced its shares at $102 a piece Tuesday night, above its range of $90 to $95. The stock began trading at $182 per share, giving it a market cap of $57.8 billion. DoorDash, founded in 2013, now joins its competitors GrubHub and Uber at a key time. Food delivery has been a bright spot during the coronavirus pandemic, with people limiting their time outside of the home as much as possible. After DoorDash’s initial pop, investors are valuing the company, on a revenue basis, at about twice as high as Uber. DoorDash is trading at just over 16 times revenue, if you project the latest quarter out over a full year, while Uber is trading just under 8 times sales. DoorDash reported $1.9 billion in revenue for the nine months ended Sept.30, according to its IPO filing. That’s up from $587 million during the same period last year. As its revenue grew, DoorDash also narrowed its net loss to $149 million over the same period in 2020. In 2019, DoorDash had a net loss of $533 million over the nine-month period.
