Despite the economic devastation brought about by the pandemic, certain industries surprisingly flourished. Entertainment such as movies, TV shows, and video games were in high demand amid lockdowns. Moreover, services such as deliveries likewise surged as folks opted to stay home and have their items delivered to their doorsteps instead. As such, DoorDash is aware of the situation and is apparently considering taking advantage of the trend with an initial public offering (IPO).
As indicated by a report from ABC News, the company based in San Francisco, California shared its plans last week. "Technology has changed consumer behavior and driven a wave of demand for convenience," according to a statement released by the DoorDash. "Recent events have further accelerated these trends, pulling the future of e-commerce forward for businesses large and small."
Data provided by the group shows a substantial increase in revenue this year. It apparently earned $1.9 billion in the first nine months of 2020, which is notably higher than the $885 million it generated in 2019. Moreover, the company pointed out that there was growth even before the pandemic gripped the economy. Nevertheless, it also warns investors of potential losses that might be incurred while its attempts to introduce several improvements to the platform.
This includes "expanding our platform offerings, developing or acquiring new platform features and services, expanding into new markets and geographies, and increasing our sales and marketing efforts," noted DoorDash. Currently, it is serving more than 18 million customers with the help of approximately a million "dashers" in Australia, Canada, and the United States. More than 390,000 merchants have signed up with the on-demand food delivery group.
Others found the timing of its announcement interesting given that it was made a week after Proposition 22 was passed. This puts businesses such as DoorDash at an advantage since most of its drivers will now be considered as contractors instead of employees. This means the company will not be required to provide costly benefits.
As it stands right now, DoorDash is supposedly the market leader when it comes to food delivery services in the U.S., with Uber Eats, Grubhub, and Postmates following in that order. Nevertheless, It acknowledges that being on top requires it to constantly improve its services and come up with new ideas that will engage consumers. With the coronavirus health crisis still ongoing, consumers will likely continue using services like it.