WASHINGTON – DoorDash is on track to take in some US$2 billion (RM8.25 billion) in revenue this year on growing demand during the pandemic, said the food delivery start-up in its public share offering filing yesterday.
The California-based firm reported losses totalling US$149 million in the first nine months of 2020 on revenues of US$1.9 billion as sales more than tripled from the prior year.
DoorDash was able to generate a profit in the second quarter of US$23 million before slipping back to a loss of US$43 million in the July-September period as it invested for growth.
“We have a history of net losses, we anticipate increasing expenses in the future,” said the company in its filing.
“We have expended and expect to continue to expend substantial financial and other resources on developing our platform... expanding into new markets and geographies, and increasing our sales and marketing efforts.”
The initial public offering comes amid the rapid growth of on-demand delivery services during the pandemic, especially for meals.
“The Covid-19 pandemic has made our mission more important than ever, and we are striving to help communities meet their challenges and become stronger,” said the firm.
The filing also comes after California voters approved a referendum clearing the path for companies like DoorDash and Uber to keep using contract drivers, a key part of their business model.
The filing said the firm’s drivers, known as “Dashers”, in California will get certain benefits, including guaranteed base pay and healthcare subsidies as a result of the passage of Proposition 22.
DoorDash said surveys showed it had a 50% share of the US meal delivery market last month, twice as big as the No. 2 service, Uber Eats.
DoorDash founder and chief executive Tony Xu in the filing said the start-up fulfils the American dream for his family, which came to the US from China when he was 5.
“DoorDash exists today to empower those like my mum, who came here with a dream to make it on their own.” – AFP, November 14, 2020
