Market Overview

Uber Eats, GrubHub Competitor DoorDash Files For IPO

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Uber Eats, GrubHub Competitor DoorDash Files For IPO

Food delivery company DoorDash confidentially filed to go public with the Securities and Exchange Commission, it announced Thursday.

What Happened

The company didn't reveal how many shares it will offer as part of the initial public offering or at what price if its filing is approved by the SEC.

In a standard statement, the San Francisco-based startup said the IPO would take place once the SEC has completed the review, and market conditions are suitable. This means the company could go public within the next three months.

Why It Matters

DoorDash and its competitors in the on-demand food delivery business, including Uber Technologies Inc. (NYSE: UBER) subsidiary Uber Eats, Postmates, and GrubHub Inc. (NYSE: GRUB) have been considering options to ramp up their businesses.

GrubHub is looking into a possible merger with one of the competitors, the Wall Street Journal reported in January. The Chicago-based company's market capitalization is reduced to $4.22 billion at press time compared to the $13 billion market cap last year, as competition in the sector continues to increase.

Uber Eats, DoorDash, and Postmates were all considering merger possibilities last year, according to the Journal, but none of the deals materialized.

Price Action

Uber's stock traded 1.42% lower at $31.99 per share in the after-hours session on Thursday. The shares closed the regular session 5.81% lower at $32.45.

GrubHub's shares closed 6.46% lower at $46.18 on Thursday.

 

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Posted-In: DoorDash GrubHub UberNews IPOs SEC Markets General Best of Benzinga

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