Dordash IPO sees stock take off on first day of trading

DoorDash saw its stock price rise more than 85% on Wednesday, making its debut on Wall Street on the New York Stock Exchange. The company’s shares started trading at a trading price of $ 182, which is much higher than $ 102 initial public offering price set for Tuesday evening. At the close of the market, Dordash shares were trading at $ 189.

These numbers exceed the company’s expectations from the previous month when it is Set its share price target range between $ 75 and $ 85.

Earlier this year, Dordash was given a private value of approximately $ 16 billion. Now, as a publicly traded company, it is valued at about $ 60 billion, According to cnbc. Although Dordish is not yet profitable, investors say its large growth shows promise. In a filing with the US Securities and Exchange Commission last month, The company reported revenue gainsLoss reduction and increased supply of customers, traders and distribution workers.

The CEO and co-owner of Dordash – “If we can deliver pizza before it melts, or before it freezes, or before the pizza cools, or we make groceries, then we can make on-site sales of anything in the city. Demand can deliver. ” Founder Tony Xu wrote in a letter with the filing.

The past few months have been booming for Dordash, as is coronavirus Caused people around the world to give shelter And stay indoors. The San Francisco-based company, founded in 2013, has gained millions of customers who avoid going to restaurants and instead order their meals through the platform. Taking advantage of this time, DoorDash has expanded from just restaurant delivery to grocery, pet store and convenience store delivery.

DoorDash says it now has more than 18 million customers, with more than 390,000 merchants and more than 1 million delivery employees on its platform.

However, Doordash’s business is not without risk. In its federal filing, the company said it faces fierce competition from companies such as Uber and Grubah. DoorDash also said that its operations could be hurt if its delivery workers – or dashers, called them by the company – were reclassified as employees. This means that it would be beholden to payroll and benefits costs, as well as any discrimination claims or employee benefits claims.

Another risk factor for its business, Dordash said in the filing, is its cost “ability to attract and retain dashers effectively.” The company stated that “negative perceptions of our platform or company could harm our reputation, brand and local network effects.” Last month, the company settled a lawsuit with the Attorney General of Washington, D.C., for $ 2.5 million over its alleged deceptive business practices Stop delivery staff tips.

A spokesperson for Dordash told CNET at the time, “We are happy to follow this issue.”

DoorDash began trading on the New York Stock Exchange on Wednesday under the symbol DASH. Goldman Sachs and JP Morgan Chase led the IPO.

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