DoorDash, the food delivery app, goes public today and gains 85% on the first day of trading. The company lists the stock on the New York Stock Exchange with a target price of $102 per share. However, the stock began trading at $102 per share and closed at $189 per share, which gave a $60.2 billion market capitalization.
Tony Xu, Andy Fang, Tony Moore, and Stanley Tang founded the company in 2013. The technology platform company started with 12 employees working in a cramped house in Palo Alto, California. The IPO timing cannot be any better as its food delivery app is viral during the pandemic.
DoorDash reported revenue of $1.9 billion for the first nine months in 2020. The income was more than $500 million higher over the same period last year. The company managed to improve its net loss by 72% from $533 million to $149 million.
DoorDash becomes the newest public company to join the food delivery app segment after Grubhub and Uber. The company has a $60.2 billion valuation. The number is significantly overvalued in comparison to Grubhub’s $6 billion market capitalization and Uber of $94 billion. However, riding app has more diversification in the online taxi, freight, and grocery delivery market.
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