Last-mile food delivery provider DoorDash has launched an IPO, with the San Francisco-basedoffering 33 million shares of Class A common stock at an expected share price of between $75 and $85. The company initially submitted a draft S-1 filing in confidentiality to the Securities and Exchange Commission in February, following up with an S-1 registration statement and prospectus filing on November 13.
The shares will trade on the New York Stock Exchange under the ticker symbol DASH, with Goldman Sachs and J.P. Morgan are serving as lead book-running managers for the proposed IPO.
DoorDash plans to expand its presence in the grocery delivery space with the launch of its DashPass subscription service, following an announcement in August. The service allows customers to pay $9.99 monthly for unlimited free deliveries for orders of up to $12.
DoorDash was initially known for restaurant food delivery, providing grocery retailers with last-mile delivery only through its white-label Drive service. The company is expanding its reach to deliver an end-to-end online grocery marketplace solution that encompasses ordering, fulfillment and delivery. Retial stores that will part of the new service are Smart & Final, Meijer, Fresh Thyme Market, Hy-Vee and Gristedes/D’Agostino.
Fuad Hannon, head of new verticals at DoorDash, stated that the first phase of the rollout will provide over 75 million Americans with access to online ordering and delivery from a grocery store via DoorDash.The DoorDash Drive white-label fulfillment solution is already a household name among retailers, with the likes of Walmart, Hy-Vee, ShopRite, Coborn’s, Woodman’s Market, Kowalski’s Markets and independent grocers under the Piggly Wiggly banner using the service.
DoorDash has delved deeper into the pharmacy space, partnering with Sam’s Club to provide on-demand delivery of prescription drugs. The service will enable more than 500 Sam’s Club pharmacies in 41 states to use DoorDash’s Drive white-label platform offer same-day delivery of medications, a deal that marks DoorDash’s first large-scale pharmacy delivery partnership.
The delivery solutions provider has also launched delivery of food, groceries and other non-prescription products with drugstore giants CVS Pharmacy and Walgreens. The company also extended its reach in the retail sector in April, launching same-day delivery in the convenience store channel to include over 1,800 stores of chains such as 7-Eleven, Circle K, Wawa and Casey’s.
All in all, DoorDash currently provides on-demand delivery and logistics services to local and national businesses in over 4,000 cities and all 50 states across the United States, Canada and Australia. DoorDash has a 50% U.S. market share in local food delivery logistics as reported in its IPO prospectus, compared with 16% for Grubhub, 26% for Uber Eats, and 7% for Postmates.
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