. . World News – CA – DoorDash reveal who I am. s. a. Filing

SAN FRANCISCO – DoorDash, the largest food delivery startup in the US, revealed on Friday that it is losing money even as the coronavirus pandemic has led to a spike in orders, according to financial documents released as the company prepares For public subscription.

The San Francisco Corporation performance renewed questions about whether a « gig economy » business, which relies on armies of contract workers, can make a profit. DoorDash primarily connects restaurants, drivers and customers to facilitate takeout orders.

DoorDash announced a profit of $ 1 USD. $ 92 billion in the nine months ending September, more than 200 percent above $ 587 million for the same period last year, according to the prospectus submitted for the planned IPO.. . The company’s net loss in the first nine months of this year was $ 149 million, compared to a loss of $ 533 million a year earlier. .

In a clear indication of the impact of the pandemic, DoorDash received 543 million requests as of September this year, compared to 181 million applications in the same period the previous year..

The prospectus does not specify the value of the shares DoorDash will sell. The startup was estimated to be worth $ 16 billion as part of a $ 400 million private financing round in June. It has raised nearly $ 3 billion in total capital, according to Pitchbook, which tracks startup funding.

In a long message, CEO Tony Shaw outlined the company’s plans to expand beyond food delivery to « all local businesses » in the « comfort economy ».

« If we can make ice cream delivery before it thaws, pizza before it cools, or groceries within an hour, we can make delivering anything on-demand in town a reality, » he wrote.

DoorDash planned to go public earlier this year, and submit a confidential file to the Securities and Exchange Commission in late February.. But the epidemic stopped me. s. a. Market. Instead, DoorDash and other delivery companies have focused on responding to a flood of customer demand, as restaurants have closed and people stayed home due to the pandemic.. In late summer, the fervor of the stock market has revived the first technology. s. a. s, with companies such as data startup Palantir and data storage company Snowflake debuting publicly. Airbnb is expected to deliver its prospectus next week.

However, DoorDash faces challenges. The increase in orders over the summer did not allow the company to turn a profit. Profits shortages at several gig economy firms, such as Uber and Lyft, have raised questions about whether they can become viable businesses..

However, DoorDash is no longer burning money. In the first nine months of the year, her business generated $ 315 million in cash. In the same period in 2019, it consumed $ 308 million in cash.

DoorDash faces labor questions due to its use of contractors. This month, the company made a political gain by passing Proposition 22, a California ballot measure that exempted it, Uber, Lyft and others from a law that would have required them to treat their drivers as employees..

The company also deals with intense competition and standardization in food delivery, as customers, restaurants and drivers are not particularly loyal to one competing service over another.. The DoorDash prospectus identified four major competitors and said its « highly fragmented and highly competitive » market poses a risk to investors.

In June, rival Grubhub agreed to sell itself to Just Eat Takeaway, a European service, for $ 7. 3 billion. A month later, Uber acquired Postmates, a smaller competitor, for $ 2. 65 billion. DoorDash has been in talks about the deal with Postmates, Uber and Grubhub for the past year, but has remained independent..

As social distancing rules persist, restaurants have struggled to cover their expenses on delivery apps. In April, DoorDash temporarily lowered its initial fee for independent restaurants, which it said cost it around $ 120 million. On Thursday, it announced a pledge of $ 200 million for programs to help restaurants and delivery drivers.

DoorDash is created by Mr. . Xu, its CEO, along with Stanley Tang, Andy Fang and Evan Moore on a semester project at Stanford University’s Business School in 2013. The company, which attracted critics and struggled to raise finance in its early days, did not follow a smooth path.

“I don’t find it rewarding if all of this is on the right,” Mr.. Shaw, 36, said in an interview this year.

Mr.. Xu possesses 41. 6 percent of the company’s Class B shares, which give their owners 20 votes for each share. The prospectus did not mention how much DoorDash would have after the offering.

DoorDash has expanded rapidly in recent years, due in part to a series of massive cash payments that began in 2018. The company operates in the United States, Canada and Australia, and has more than 1 million drivers and 18 million customers.

It has also partnered with several national restaurant chains and created the DashPass subscription service, which costs $ 9.. 99 per month for unlimited delivery and for five million customers.

This year, DoorDash began operating « cloud kitchens » or commissary buildings where restaurants can rent space and prepare food specifically for delivery, as well as deliver grocery, pet food, and items from smaller stores like Walgreens. Last month, the company invested in Bay Area restaurant group, Burma Bites.

The company’s largest shareholders include funds managed by SoftBank’s Vision Fund, Sequoia Capital and the Singapore government..

Goldman Sachs and J.. s. Morgan will sponsor the offer to be listed on the New York Stock Exchange.

DoorDash, Initial Public Offering, Revenue, Tony Xu