DoorDash drops juicy details pre-IPO and reveals its biggest ambition
Drooling all over the S-1... DoorDash released its IPO paperwork on Friday, and didn't hold back with the high-res food pics (so many poke bowls). Companies that are going public have to file a prospectus with the SEC so investors can get informed. Here's what DoorDash delivered:
- #1 food deliverer in the US: DoorDash has an enviable 50% share of the market. Uber Eats has 26%, Grubhub has 16%, and Postmates (which Uber's buying) has 7%.
- Sales more than tripled to $1.9B from January to September compared to the same period in 2019. 18M customers, 1M Dashers, and 390K merchants now use DoorDash's platform.
- It's still not profitable. Buuuut: DoorDash significantly cut its net loss from $533M in the 2019 period to $149M in 2020.
Pad thai, Netflix, repeat... DoorDash's growth was driven by the pandemic/lockdowns, which also boosted Grubhub and Uber — their stocks are up over 50% this year. But it warned investors growth may not continue at the same appetizing pace. To continue growing, DoorDash needs to expand beyond the saturated, hyper-competitive food delivery market.
DoorDash is going full "Delivery Everything"... It bragged that if it can deliver unmelted ice cream, it can deliver anything — and that's exactly what it's trying to do. In addition to restaurant and grocery delivery, DoorDash partnered with CVS for pharmacy delivery and Macy's for clothing delivery. Mom-and-pop shops could be next. An all-in-one platform could keep "promiscuous" customers loyal and reduce the need for endless promos. That's why DoorDash mentioned "food" 169 times in its S-1 and "logistics" 200 times (#priorities).