Dordesh, the largest food delivery company in the U.S., opened trading on Wall Street on Wednesday.
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Durdesh raised its share price by more than 85% on the New York Stock Exchange on Wednesday after its launch on Wall Street. Shares of the company started trading at 182 levels, much higher than the initial 102 initial public offering scheduled for Tuesday evening. At market close, Durdesh shares were trading at 9,189.
That number is much higher than the company’s expectations of last month when it is Set its share price target range between $ 75 and $ 85.
Earlier this year, Dordesh’s private value was about 16 16 billion. According to CNBC, it is now valued at about 60 60 billion as a publicly traded company. Although Dordesh is still not profitable, investors say its growth rate is promising. Filed with the U.S. Securities and Exchange Commission last month, The company reported revenue gains, A reduction in losses and an increasing supply of customers, merchants and delivery workers.
“If we can make grocery delivery possible before the ice cream melts, or before the pizza cools, or within an hour, we can make demand-delivery of anything within the city a reality,” with Dordesh CEO and co-founder Tony Zue filing. Wrote in a letter included.
There has been a boom for Dordesh over the last few months, as people around the world have been living in shelters and indoors because of the coronavirus. Founded in 2013, the San Francisco-based company has gained millions of customers who avoid going to restaurants and instead order their meals through the platform. Taking advantage of this time, Dordash has expanded from just restaurant delivery to grocery, pet store and convenience store delivery.
Durd says it now has more than 18 million customers, partners with more than 390,000 merchants and more than 1 million delivery workers on its platform.
However, Dordesh’s business is not without risks. In its federal filing, the company said it faces stiff competition from companies such as Uber and Grubh. Dordesh also said its operations could be harmed if its delivery workers – or dashers, as the company calls them – were reclassified as employees. This means that it will look at the payroll and benefits costs as well as any discrimination claims or employee benefit claims that may occur.
Another risk factor for his business, Dordash said in the filing, is the “ability to attract and retain Dussehra cost-effectively”. The company added that “a negative view of our platform or company harms our reputation, brand and local network influences.” Last month, the company filed a $ 2.5 million lawsuit with Washington, D.C.’s attorney general, alleging fraudulent business practices. Withheld tips from delivery workers.
A Dordesh spokesman told CNET at the time, “We are happy to have this issue behind us.”
Durdash began trading under the DSH symbol on the New York Stock Exchange on Wednesday. Goldom Sachs and JPMorgan Chase lead the IPO.
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