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Illustration: Aïda Amer/Axios

DoorDash filed Friday for its IPO, which is expected to price in the window between Thanksgiving and Christmas.

The state of play: There's a lot more noise than signal because of the pandemic.

  • Goldman Sachs and JPMorgan are co-leading the offering, with a total of 12 banks listed. DoorDash plans to trade on the NYSE under ticker symbol DASH.
  • There are no equity grants or purchase programs for Dashers. The company did yesterday announce a $200 million workforce development program that will include around $12 million in cash bonuses.
  • DoorDash had raised nearly $3 billion in VC funding, most recently at a $16 billion post-money valuation. Shareholders include: SoftBank Vision Fund (24.9% pre-IPO stake of Class A shares), Sequoia Capital (20.4%), and GIC (10.5%). CEO Tony Xu holds 41.6% of Class B shares. SoftBank Vision Fund has invested at least $680 million.

By the numbers: DoorDash reports a $149 million net loss on $1.9 billion in revenue for the first nine months of 2020, versus a $533 million net loss on $587 million in revenue for the year-earlier period. It did turn a $23 million profit in Q2 but went back into the red in Q3.

  • For context, rival Uber Eats lost money in Q2 2020.
  • DoorDash's total costs and expenses doubled year over year for the nine-month period, while adjusted EBITDA moved from negative $372 million to positive $95 million.
  • Total orders increased from 181 million to 543 million, while there are over 390,000 merchants and one million "Dashers" on its platform. As Axios' Felix Salmon messaged me via Slack: "Imagine if those people had to be counted as some kind of employees."
  • DoorDash has $1.6 billion of cash on its balance sheet as of Sept. 30.

Yes, but: DoorDash acknowledges that COVID-19 lockdowns played a significant role in its year-over-year growth, and says "we expect the growth rates in revenue, total orders, and [marketplace revenue] to decline in future periods."

What's next: DoorDash isn't the only food delivery economy company planning to go public. Grocery-focused Instacart just picked Goldman Sachs to lead a 2021 IPO at upwards of a $30 billion valuation, per Reuters.

  • And close on Doordash's heels should be filings from Airbnb, Affirm, Roblox and Wish.

The bottom line: The numbers all seem to be moving in the right direction, but we'll need several more quarters before we can see DoorDash clearly through the coronavirus fog.

Go deeper

Dan Primack, author of Pro Rata
Jan 29, 2021 - Economy & Business

Varsity Tutors to be valued at $1.7 billion in SPAC deal

Illustration: Rebecca Zisser / Axios

Nerdy, the parent company of online learning platform Varsity Tutors, announced on Friday that it will be acquired by a SPAC called TPG Pace Tech Opportunities at a valuation of $1.7 billion. Axios had previously reported on the deal talks.

Why it matters: This is the first tech SPAC deal affiliated with private equity giant TPG, and comes as more and more legacy investment firms are hopping on the blank check bandwagon.

Home confinees face imminent return to prison

Illustration: Aïda Amer/Axios

Thousands of prisoners who've been in home confinement for as long as a year because of the pandemic face returning to prison when it's over — unless President Biden rescinds a last-minute Trump Justice Department memo.

Why it matters: Most prisoners were told they would not have to come back as they were released early with ankle bracelets. Now, their lives are on hold while they wait to see whether or when they may be forced back behind bars. Advocates say about 4,500 people are affected.

The "essential" committee that still doesn't exist

House Speaker Nancy Pelosi. Photo: Stefani Reynolds/Getty Images

Nearly five months after House Speaker Nancy Pelosi (D-Calif.) announced the creation of the bipartisan Select Committee on Economic Disparity and Fairness in Growth, it's not been formed much less met.

Why it matters: Select committees are designed to address urgent matters, but the 117th Congress is now nearly one-quarter complete without this panel assembling. When she announced this committee, Pelosi described it as an "essential force" to "combat the crisis of income and wealth disparity in America."