Food delivery service DoorDash is talking to banks to secure a line of credit of about $400 million ahead of a potential IPO, according to Bloomberg.
DoorDash could go public as early as next year, according to the report. This comes as investors are awaiting an IPO from Postmates, a smaller food delivery company, and after Uber’s second-quarter results showed that its Eats meal delivery unit appears to be weighing down its business.
Food delivery is a competitive market, with companies burning through cash as they try to attract new customers and drivers to ferry orders from restaurants to doorsteps. DoorDash has raised nearly $2 billion for its war chest and appears to be the leader in the market. It had more market share nationally than its competitors in June, according to the firm Second Measure, which tracks credit card transactions.
Last week, DoorDash bought Caviar, another food delivery app, from the payments company Square. It appears from the Bloomberg report that the company hasn’t been deterred by Uber’s disappointing IPO.