(Reuters) – DoorDash Inc, the loss-making U.S. food delivery startup backed by SoftBank Group Corp (9984.T), said on Thursday it has filed for an initial public offering (IPO), setting it up to be one of the most high-profile listings of 2020.
The IPO will be yet another test of investor appetite for unprofitable Silicon Valley startups, after the likes of ride-hailing companies Uber Technologies Inc (UBER.N) and Lyft Inc (LYFT.O) struggled last year after going public.
“The number of shares to be offered and the price range for the proposed offering have not yet been determined,” DoorDash said in a statement. “The initial public offering is expected to take place after the SEC (Securities and Exchange Commission) completes its review process, subject to market and other conditions.”
The company has hired Goldman Sachs to lead the IPO, according to a person familiar with the matter. Goldman Sachs declined to comment.
DoorDash competes with Uber Eats, GrubHub Inc (GRUB.N) and Postmates Inc, and was last valued at around $13 billion after its most recent funding round in 2019, according to data platform PitchBook.
The market has shown it remains unforgiving toward loss-making companies so far in 2020. Earlier this month, mattress retailer Casper Sleep sold shares in its IPO at the bottom end of a targeted range it had already lowered, slashing its valuation by more than half in less than a year.