DoorDash Inc., an American food delivery service, debuted its IPO on the NYSE on Wednesday. The company’s resulting valuation reached $71.3 billion as investors showed the eagerness for tech companies boosted by pandemic.
DoorDash’s shares, initially priced at $102, opened at $182 and closed at $189.51, nearly 86% higher than the listing price. The DoorDash IPO is the 3rd largest listed on a US exchange this year.
Its market capitalization is more than Chipotle Mexican Grill Inc. and Lyft Inc. combined, sitting around $60.2 billion.
As of October, DoorDash has acquired 50% of the US market share, rushing past competitors UberEats, GrubHub, and Postmates. This is up from the 17% it held in 2018. The company, along with others, no doubt benefited from a surge in demand for food delivery services amidst the pandemic restrictions.
Before the pandemic, food-delivery companies struggled to make any profits amid the fierce competition and poor reception of fees and worker treatment. This is no doubt leaving some investors skeptical of the IPO and how the companies will perform in the long term.
This news bite was adapted from an article originally written by Crystal Tse, Katie Roof, and Ellen Huet for Bloomberg News.
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