DoorDash Inc. said Friday that it plans to list its common shares on the New York Stock Exchange as the SoftBank-backed group continues to lead rivals such as Uber Technologies (UBER) - Get Report and GrubHub (GRUB) - Get Report in the surging food delivery market.
DoorDash said in an S-1 filing Securities and Exchange Commission that its Class A shares, which entitle investors to one vote each, will be listed on the board with the ticker symbol DASH. The placeholder amount for the listing was set at $100 million, but its last valuation was estimated at around $16 billion.
DoorDash added that revenues for the nine months ending in September were pegged at $1.92 billion more than triple the total booked over the same period last year.
"Having spoken to countless merchants since DoorDash’s founding in 2013—from a Mom and Pop store like Oren’s Hummus to the General Managers of Chili’s, I am humbled by their relentless drive to create and build, and their contribution to their communities," CEO Tony Xu wrote in a letter attached to the SEC filing. "While small businesses are vital to our communities and created approximately two-thirds of net new jobs in the United States from 2000 to 2018, they now risk being left behind in the convenience economy where consumers have become accustomed to obtaining everything in a few clicks, a trend that has only accelerated in a COVID world."
'Helping brick-and-mortar businesses compete, succeed, and flourish in these rapidly changing times is the core problem we are trying to solve," he added.
DoorDash's Class B shares, around 41.6% of which are held by founder and CEO Xu, will hold 20 votes each while its Class C stock will have no voting rights, DoorDash said.
DoorDash, which is backed by Japan's SoftBank Group, first filed its intention to go public in February, and last raised around $400 million in equity financing through, among others, T. Rowe Price and Fidelity.
DoorDash commanded around a near 50% share of the U.S. food delivery market in September, according to Second Measure research, well ahead of Uber's Uber Eat's 22% and GrubHub's 20%.