DoorDash just filed for its IPO, and revealed a lengthy list of risk factors that investors should be aware of — from the ongoing pandemic to contract-worker classification

Ben GilbertNov 13, 2020, 23:51 IST

DoorDash and Burma Bites.DoorDash

Food-delivery service DoorDash filed for its initial public offering on Friday morning.
The "Risk Factors" section of the document highlights many of the issues facing the broader app-based food-delivery market, from business model challenges with contractors to a surge in sales due to the pandemic.
Everything from the ongoing coronavirus pandemic to contract workers rights legislation is highlighted and detailed by DoorDash as potential risks to its business. We break down the full list below.

The biggest player in the food-delivery service market, DoorDash, is officially going public.

DoorDash Friday morning filed a form S-1 for its IPO with the Securities and Exchange Commission.

In order to begin that process, DoorDash had to publicly disclose a trove of information that was previously unknown. For starters: The pandemic has been good for the company, with losses dropping to $149 million on revenue of $1.9 billion, compared to a $667 million loss on $587 million in revenue in the prior year.

But that's far from all the filing document has to offer — a section labeled "Risk Factors" details the major issues DoorDash believes it could face. We break down the most important of those potential issues below:

1. DoorDash is part of an emerging market, and at just 7 years old, the company has limited experience in that market.

DoorDash is part of an emerging market of app-based delivery services, like Uber Eats. Eugene Hoshiko/AP

2. The company has yet to turn a profit, and expenses are only expected to increase going forward.

DoorDash CEO Tony Xu. Mike Blake/Reuters

3. The market for food delivery apps is increasingly crowded, and increasingly competitive.

Postmates is among the dozen-plus options for food delivery from a smartphone app that competes with DoorDash. igor moskalenko/Shutterstock

4. The ongoing coronavirus pandemic, or another such pandemic, could negatively impact business in an unpredictable way — and the boost in sales and usage won't last forever.

A DoorDash delivery person, known as a "Dasher," in a promo photo from the company. DoorDash

4. The ongoing coronavirus pandemic, or another such pandemic, could negatively impact business in an unpredictable way — and the boost in sales and usage won't last forever.

5. If DoorDash has to reclassify drivers as employees, it would impact the company's growth opportunities — but other legislation could harm its financials, too.

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DoorDash just filed for its IPO, and revealed a lengthy list of risk factors that investors should be aware of — from the ongoing pandemic to contract-worker classification

1. DoorDash is part of an emerging market, and at just 7 years old, the company has limited experience in that market.

2. The company has yet to turn a profit, and expenses are only expected to increase going forward.

3. The market for food delivery apps is increasingly crowded, and increasingly competitive.

4. The ongoing coronavirus pandemic, or another such pandemic, could negatively impact business in an unpredictable way — and the boost in sales and usage won't last forever.

5. If DoorDash has to reclassify drivers as employees, it would impact the company's growth opportunities — but other legislation could harm its financials, too.