DASH begins buying and selling on the NYSE
The New York Stock Exchange welcomes DoorDash, Inc. (NYSE: DASH) executives and guests today, Wednesday, December 9, 2020 in celebration of its IPO.
DoorDash, a leading grocery delivery app, will be listed on the New York Stock Exchange on Wednesday.
The company valued its shares at $ 102 apiece Tuesday night, which is above its $ 90-95 range. The shares were reported to trade between $ 195 and $ 200 per share around noon ET
DoorDash was founded in 2013 and now joins competitors GrubHub and Uber at an important time. Grocery delivery was a bright spot during the coronavirus pandemic as people restricted their time outside the home as much as possible.
DoorDash reported sales of $ 1.9 billion for the nine months ended September 30. That’s an increase of $ 587 million over the same period last year. As sales grew, DoorDash reduced its net loss to $ 149 million over the same period in 2020. In 2019, DoorDash recorded a net loss of $ 533 million for the nine month period.
In its prospectus, DoorDash said that more than 390,000 merchants use the app.
A Doordash delivery driver rides his bike in the rain during the coronavirus disease (COVID-19) pandemic in the Manhattan neighborhood of New York City, New York, the United States, on November 13, 2020.
Carlo Allegri | Reuters
The company, which is # 12 on the CNBC Disruptor 50 2020 list, trades under the symbol “DASH”. Goldman Sachs and JP Morgan are the main insurers of the offering, while SoftBank is the largest shareholder with a stake of around 20%, followed by Sequoia, which owns 16%.
A busy season for market debuts begins with the public offering on Wednesday. Airbnb will go public on Thursday, followed by e-commerce Wish next week, and fintech firm Affirm and video game maker Roblox for kids this month.
DoorDash has been reviewed more than once by the District of Columbia Attorney General.
A $ 2.5 million settlement was recently reached with the AG’s office after consumers were accused of misleading consumers about how tips were distributed to workers. DoorDash has denied the allegations, but has changed its top model since the period named by the AG in the lawsuit.
More recently, the DC AG office confirmed to CNBC that it sent a cease and desist letter to DoorDash on Tuesday warning it to suspend plans to collect commissions for its DashPass service that would exceed a district-set fee cap .
The DC Council recently passed law limiting third party delivery and collection fees during a public health emergency to 15% of the order price. The Washington City newspaper reported last week that restaurants were informed that they would be charged the original price in their DashPass contracts. This is a premium service for frequent users that restaurants pay to attend.
According to a statement from the city newspaper, DoorDash informed the restaurants that the legislation “only applies to classic orders and not to the DashPass program”.
In a statement Wednesday, a DoorDash spokesperson told CNBC that it had decided not to charge restaurants for their DashPass contractual prices for the time being, citing “confusion over our response to the unintended consequences of Washington, DC pricing rules”. “” They claimed DashPass was a “premium marketing offer”.
“We look forward to working with local policymakers to improve understanding of the impact of pricing rules and solutions that better serve customers, dashers and restaurants,” said the spokesman.
– CNBC’s Lauren Feiner contributed to this report.
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