DoorDash files paperwork for initial public offering

DoorDash Inc., the app-based food delivery company, filed paperwork with the Securities and Exchange Commission to begin the process of a public stock listing.

The company said it had filed “confidentially,” meaning its financials won’t be available publicly yet. The number of shares to be offered and the price range have not yet been determined, according to a statement from the company Thursday. The initial public offering of stock is expected to take place after the SEC completes its review process and is subject to “market and other conditions.”

The start-up had been weighing a direct listing, instead of an IPO, a route that would allow it to go public without the scrutiny that comes with an investor roadshow, but also wouldn’t raise money by issuing new shares. If the company goes through with its plans, it could be one of the first high-profile listings of the year. The announcement comes as the stock market has been roiled by the effects of the spreading coronavirus, although it’s unclear how long the concern will last.

The IPO process has been particularly unforgiving recently to deeply unprofitable companies such as Lyft Inc. and Uber Technologies Inc. WeWork was forced to abandon its IPO last year and take a bailout from its largest investor, SoftBank Group Corp., when Wall Street rejected the company’s pitch on the roadshow.

DoorDash has raised about $2 billion from investors, including SoftBank and venture capital firm Sequoia, most recently at a valuation of almost $13 billion. It uses gig-economy labor and faces similar risks as Lyft and Uber. DoorDash was embroiled in a controversy over drivers’ tips last year, which it addressed partially by increasing pay to workers. However, the issue lingers. The attorney general in Washington sued DoorDash, alleging the company pocketed customers’ tips to reduce labor costs.

The company has also been the subject of speculation that it may be bought. Last summer, a DoorDash investor prepared an informal presentation arguing the merits of a sale of the company to Uber, according to a copy of the document obtained by Bloomberg.