American food delivery start-up DoorDash plans to raise $2.8bn

1st December 2020 (Last Updated December 1st, 2020 17:19)

US-based on-demand food delivery start-up DoorDash is planning to raise up to $2.8bn through its initial public offering (IPO).

American food delivery start-up DoorDash plans to raise $2.8bn
SoftBank-backed DoorDash intends to sell 33 million shares in the IPO. Credit: GoToVan.

US-based on-demand food delivery start-up DoorDash is planning to raise up to $2.8bn through its initial public offering (IPO).

The SoftBank-backed company intends to sell 33 million shares in the IPO. Each share is expected to be priced between $75 and $85, according to a recent regulatory filing made by the company.

In the filing, the firm stated that its co-founders Tony Xu, Andy Fang, and Stanley Tang will hold approximately 69% of the voting power after the IPO.

The company also said: “The principal purposes of this offering are to increase our capitalisation and financial flexibility, create a public market for our Class A common stock, and enable access to the public equity markets for us and our stockholders.”

The company plans to be listed on the New York Stock Exchange under the symbol ‘DASH’.

In February, DoorDash filed for an IPO with the Securities and Exchange Commission (SEC).

Founded in 2013, the company operates across all US states and Puerto Rico. It also expanded to Canada and Australia.

Its major rivals in the US food delivery markets include Uber Eats and Grubhub.

Last year, DoorDash acquired food ordering platform Caviar from financial and merchant services aggregator Square.

A lawsuit was filed against the company last year for misleading consumers through deceptive tipping practices.