DoorDash raises $535m funding
Food delivery specialist DoorDash raised $535m in a recent Series D funding round led by SoftBank with participation from existing investors Sequoia Capital, GIC and Wellcome Trust.
In a statement issued earlier this month, DoorDash said that this was the largest financing to date by a U.S. restaurant delivery platform.
DoorDash was founded in 2013 and it claims that it is now “partnering with nearly 90 percent of the top 100 U.S. restaurant brands who offer on-demand delivery”.
The company said that it plans to use the funding to “build more technology for merchants, which will result in lower prices and faster delivery times for consumers”.
“Our vision for DoorDash is to build the last-mile logistics layer to empower every business to thrive in the digital and convenience economy,” said DoorDash CEO and co-founder, Tony Xu. “Today’s investment by the most forward-looking firms in the world accelerates our ability to achieve this vision.”
The company reported that it “more than doubled delivery volume” in 2017, “while growing gross profits six fold year-over-year”. In 2018, it plans to “triple its geographic footprint from 600 to 1,600 cities and hire more than 250 people across its corporate offices”.
“DoorDash’s technology advantages, exceptional management team and relentless merchant focus are reflected in their stunning growth and impressive unit economics,” said Jeffrey Housenbold, managing partner at SoftBank Investment Advisers. “Food delivery is just the first chapter. Tony and team have a bold vision to create the world’s best logistics company, and we’re thrilled to partner with them to help accelerate their progress.”