DoorDash releases filing to go public

DoorDash, the leading food delivery app in the U.S., filed its IPO prospectus with the Securities and Exchange Commission on Friday. The company will list its shares on the New York Stock Exchange under the symbol…

DASH.

DoorDash reported $1.9 billion in revenue for the nine months ended Sept. 30. 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.

The company said it has 1 million Dashers (delivery workers) and more than 18 million customers. It also had over 5 million customers on its $9.99 per month DashPass service as of Sept. 30. The offering gives customers free delivery from restaurants part of the program.

DoorDash will offer three classes of stock with different voting shares. Class A common stock will grant owners one vote per share. Class B shares will come with 20 votes per share and Class C shares will have no voting rights.

Offering multiple classes of stock has become a common practice in Silicon Valley, especially when the chief executive is also a founder, as is the case with DoorDash’s Tony Xu. The prospectus says Xu and his two co-founders, Andy Fang and Stanley Tang, are expected to enter a voting agreement that would give Xu the authority “to direct the vote and vote the shares” of Class B stock held by his co-founders.

“As a result, Mr. Xu will be able to determine or significantly influence any action requiring the approval of our stockholders, including the election of our board of directors, the adoption of amendments to our certificate of incorporation and bylaws, and the approval of any merger, consolidation, sale of all or substantially all of our assets, or other major corporate transaction,” the filing says.

The company seeks to join competitors GrubHub and Uber on the public market. DoorDash has the lead in U.S. market share among them, with 49% of meal delivery sales in September compared with…

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