DoorDash IPO turns CEO Tony Xu, co-founders Andy Fang, Stanley Tang into billionaires
DoorDash saw its shares soar more 86% after opening at $182 Wednesday.
DoorDash CEO Tony Xu and co-founders Andy Fang and Stanley Tang have joined the billionaires club.
The food delivery platform's initial public offering pushed Xu's net worth to approximately $3.1 billion, with Fang and Tang's net worths each reaching roughly $2.8 billion, according to a report.
Xu owns 4.6% of the company, while Fang and Tang own 4.2% each, Celebrity Net Worth reported.
DOORDASH IPO DELIVERS BIG, SHARES SOAR 86%
DoorDash, which began trading Wednesday under the name DASH, saw its shares soar more than 86% after opening at $182, well above its initial pricing of $102 per share Tuesday evening. DoorDash shares were initially expected to price between $90 and $95 apiece.
Wednesday’s IPO raised $3.37 billion, giving DoorDash an early valuation of more than $60 billion on a fully diluted basis. The IPO makes DoorDash the second-largest company to go public this year after Quicken Loans-parent Rocket Cos. debuted in July at $44 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DASH | DOORDASH INC. | 127.18 | -2.92 | -2.24% |
| UBER | UBER TECHNOLOGIES INC. | 69.20 | -2.10 | -2.95% |
| GRUB | n.a. | n.a. | n.a. | n.a. |
DoorDash's market share has surged to nearly 50%, well above competitors UberEats and GrubHub, as more people used food delivery amid the coronavirus pandemic. The company has more than 18 million customers and 1 million “dashers” who deliver the food from 390,000 merchants.
INSIDE DOORDASH'S GROWING BUSINESS
As a Chinese immigrant, Xu created DoorDash to empower those like his mom, “who came here with a dream to make it on their own.”
"We founded@DoorDash with the mission of growing and empowering local economies," Xu said in a tweet on Wednesday evening. "While our business will change often, one thing is constant. We wouldn’t be here without the tireless work, partnership and trust from our Employees, Merchants, Dashers, and Consumers."
Xu has voting authority over all Class B shares, giving him control of the company with 69% of the voting power, according to DoorDash's IPO prospectus.
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In its latest quarter ending Sept. 30, DoorDash brought in $879 million in revenue compared to $239 million a year earlier, topping its $362 million in revenue during the second quarter of 2020 and $298 million in revenue for the first quarter of 2020. In the first nine months of 2020, DoorDash’s order volume climbed to $16.5 billion from $5.5 billion a year earlier.
However, the company has yet to turn a profit. While DoorDash has narrowed its losses this year, the company still reported an overall net loss for the first three-quarters of $149 million, down from $534 million in the same period of 2019.