DoorDash Case Study on Private Investment Journey

This case study details the partnership between T. Rowe Price and DoorDash, focusing on the investment journey leading to DoorDash's IPO. T. Rowe Price began engaging with DoorDash before its first investment in 2019, establishing a foundation for understanding the business model. The study outlines how T. Rowe Price utilized its expertise in private investing and the food delivery sector to assess DoorDash's potential for recurring customer purchases. The partnership with CEO Tony Xu is highlighted, including the evaluation of his vision for expanding food delivery in suburban areas. The document notes the significant growth of DoorDash during the COVID-19 pandemic, culminating in its IPO on December 9, 2020, which raised US$3.4 billion. Additionally, it discusses T. Rowe Price's advisory role, providing strategic counsel during the IPO process and emphasizing intrinsic value over profit margins. The case study concludes with key findings on the growth of DoorDash's market value and its dominant market share in the U.S. online food delivery sector.