On Wednesday, the San Francisco-based food delivery app offered its first IPO — which, in just a day's time, has made its three co-founders overnight billionaires.
This month, ZipRecruiter found the median annual pay for a food delivery driver in the state of California sits at $26,423 a year; broken down hourly, most drivers earn roughly $12.70 an hour. Or to put that figure into a more sobering statistic: about 0.03% of the current wealth of each of DoorDash's three still-present co-founders.
1/ We founded @DoorDash with the mission of growing and empowering local economies. While our business will change often, one thing is constant. We wouldn’t be here without the tireless work, partnership and trust from our Employees, Merchants, Dashers, and Consumers.— Tony Xu (@t_xu) December 10, 2020
Various media outlets — CNBC, Business Insider, Bloomberg, etc. — have reported on DoorDash's public offering, the IPO’s success simultaneously increasing the net worth of both the company and its co-founders to astronomical levels. (In the near future, the seven-year-old company is now expected to be valued north of $32B.)
The company went public Wednesday, seeing its stock prices soar to over $189 a share at its peak — a figure described as "stone-cold crazy" and "the most ridiculous IPO of 2020" by some market analysts. The IPO overshot the estimated per-share price by seventeen-fold after opening yesterday at $182.
2/ To that end, I'm excited that our very first investment from today's milestone as a public company will go to the Merchants and Dashers on our platform.— Tony Xu (@t_xu) December 10, 2020
Now just a day later, DoorDash CEO Tony Xu and its two co-founders, Andy Fang and Stanley Tang, are now billionaires.
The food delivery platform's initial IPO catapulted Xu's net worth to approximately $3.1B; Fang and Tang's net worths each now sit at $2.8B based on ownership percentages.
“DoorDash exists today to empower those like my Mom who came here with a dream to make it on their own,” Xu — a child of working-class immigrant parents who came to this country with "only a few hundred dollars in [their] pockets" —wrote in a letter accompanying the company’s IPO prospectus filing with the SEC.
Nevertheless, Xu tweeted yesterday that these initial investments will also go toward "Merchants and Dashers on [the company's] platform."
Though it's uncertain how the company's successful IPO will affect it's independent "Dashers," which number a million-plus strong, it's clear the those to profit off its overnight success include DoorDash's initial 28 investors — Durable Capital Partners and T. Rowe Price being the most recent ones.
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Image: A Doordash delivery person rides their bike on Church Avenue in the Flatbush neighborhood of Brooklyn on December 04, 2020 in New York City. Food delivery startup DoorDash Inc is expected to raise its U.S. initial public offering up to $3.14 billion. (Photo by Michael M. Santiago/Getty Images)