Meal delivery service DoorDash has filed confidentially for an initial public offering Thursday, the company announced.
The San Francisco-based startup's Form S-1 draft registration statement is filed and being reviewed by the Securities and Exchange Commission (SEC). DoorDash has not determined the number of shares or the price range for the proposed IPO.
DoorDash, valued at close to $12.6 billion, became the frontrunner in the digital food delivery wars, partnering with national chains like McDonald's and local restaurants alike and accounting for a third of food delivery services in the U.S., according to data from Second Measure as reported by CNBC. It's leading against rivals like Uber Eats, Postmates and Grubhub, which often deliver for the same restaurant partners.
Food delivery makes up around 5 percent of the estimated $600 billion restaurant market in the U.S., according to data from Morgan Stanley.
Indeed, 60 percent of consumers used a third-party delivery service such as DoorDash or Grubhub for delivery orders, according to a survey from the National Restaurant Association and market research firm Technomic Inc.
|UBER||UBER TECHNOLOGIES INC.||21.96||+0.41||+1.93%|
|GRUB||JUST EAT TAKEAWAY.COM NV||6.72||+0.65||+10.71%|
Still, third-party delivery services have faced backlash for charging high commission fees -- as much as 30 percent -- that can hinder mom-and-pop restaurants from making a profit. Some small businesses have criticized third-party delivery services like DoorDash for listing its restaurants on takeout platforms without their permission.