DoorDash is set to become a Nevada-incorporated company.
Shareholders controlling 54.2% of the delivery service's voting power agreed to end its incorporation in Delaware and head west, according to a Tuesday filing with the Securities and Exchange Commission.
The move was made with the written consent of the shareholders, including cofounders Tony Xu, Andy Fang, and Stanley Tang, according to the filing. DoorDash's board had unanimously recommended reincorporating in Nevada.
DoorDash is the latest company to decide to move out of Delaware. While it's long been the top state for companies looking to incorporate, big names from Roblox to VC firm Andreessen Horowitz have left over the last two years.
Elon Musk famously reincorporated SpaceX in Texas after a judge in Delaware voided his $55 billion pay package in 2024.
DoorDash cited its own concerns about Delaware's legal system in Tuesday's filing.
"DoorDash's management and Board believe that the Company will be best positioned to pursue its corporate strategy within the more predictable, statute-based legal environment that Nevada provides," the company wrote.
Delaware has a reputation of legal precedents that are favorable to businesses, DoorDash's filing reads.
"However, in recent years, a discussion has emerged in the market over the legal landscape in Delaware, including as a result of cases that reached what many viewed as surprising results, an increasingly litigious environment and high-profile litigation outcomes that involved companies with controlling stockholders," it continues.
Other states, such as Nevada, "attracted attention as potentially offering a more business-friendly, agile and predictable environment," the company wrote.
Do you have a story idea about DoorDash? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
Read next
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
Follow Following
Every time publishes a story, you’ll get an alert straight to your inbox!
Look out for an alert in your inbox the next time publishes a story!
Every time a new story is published, you’ll get an alert straight to your inbox!
Look out for an alert in your inbox the next time a new story is published!
By clicking “Sign up”, you agree to receive emails from Business Insider. In addition, you accept Insider’s Terms of Service and Privacy Policy.
