Why a DoorDash IPO Might not Deliver for Investors

Food delivery leader DoorDash filed for an initial public offering in February, which was bad timing for a listing announcement, but prescient since it would benefit from the lockdown orders that would soon follow.

While its market debut was delayed, the company still seems to be preparing for a public entrance as it raised $400 million from investors in June, valuing the business at $16 billion. With food delivery playing a leading role in the survival of restaurants during the pandemic, DoorDash could make a big splash when its IPO lands.

Yet investors might want to use caution before grabbing a slice of this third-party food delivery provider.

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Source Fool.com