- DoorDash will begin trading on the NYSE on Wednesday.
- The company’s IPO filing in November revealed delivery workers will not be granted stock when the company goes public.
- They are, however, eligible for $US12 million in cash bonuses over the next six months.
- Visit Business Insider’s homepage for more stories.
DoorDash is going public, and IPO paperwork sheds light on the people who are â€” and are not â€” looking at a potential windfall.
DoorDash priced its shares at $US102, which is above the expected range and will allow the company to raise $US3.4 billion when trading begins. However, dashers, delivery drivers classified as independent contractors by the company, will not receive stock grants or be able to participate in a stock-purchase program, Dan Primack of Axios noticed. They will be eligible for about $US12 million in cash bonuses, DoorDash announced in November. The cash reward program is part of a $US200 million development program over the next five years.
DoorDash says the $US12 million in bonuses, which will go through May 2021, are to support drivers “who’ve helped power so many important deliveries in their communities.” Dashers around the world will be eligible, and details will be announced later in the quarter.
Read more: California voters approved Proposition 22, keeping ride-share and food delivery drivers as contractors â€” here’s what that means for companies like Uber, Lyft, Instacart, DoorDash and their workers
DoorDash also pledged to add $US10 million to its earlier cold-weather grant program to help restaurants survive colder months in several markets in the US and Canada. It also announced a continued partnership with United Way, and an accelerator program in 2021 to “help women and minority local entrepreneurs gain access to the capital and other tools they need to sustain and grow their business.”
The delivery company headquartered in San Francisco said in the initial filing that it saw business surge throughout the pandemic this year while losses shrank, with a surprise $US23 million profit in the second quarter, though it reported a loss for the third quarter. DoorDash has the largest share of the delivery market in the US, according to Edison Trends, and as of June was valued at $US16 billion. As of Wednesday, it is valued at $US34.2 billion and poised to become one of the biggest IPOs of the year.
Business Insider Emails & Alerts
Site highlights each day to your inbox.