First read is on us.

Subscribe today to keep up with the latest travel industry news.

DoorDash Raises $250 Million Nearly Tripling Its Valuation


Skift Take

DoorDash is on fire. There's lots of room to grow in the delivery market — remember, nearly half of delivery orders are still placed over the phone — but its new technology, strong chain partnerships, and influx of cash are teeing it up as a force to be reckoned with in the space.

Not quite six months after announcing a half-billion dollar round of funding, DoorDash announced another $250 million raise. This puts the company's valuation at $4 billion, up from $1.4 billion in March.

“DoorDash is gaining market share faster than anyone in the space,” said DoorDash CEO and co-founder, Tony Xu said in a release. The company now touts 250 percent year-over-year growth, and is available in over 1,000 cities and growing — according to a company blog post, it’s on track to cover 2,000 cities by the end of the year.

It’s been a hot summer for DoorDash. In July, it announced a new chief financial officer, Prabir Adarkar , hired away from Uber. Soon after, the announced an exclusive nationwide deal with The Cheesecake Factory. Last week, DoorDash announced its  two newest features: in-store pickup and a monthly subscription plan.  DoorDash also landed a coveted delivery partnership with Chipotle as it works to expand its delivery offerings, though the deal is not exclusive.

Last Mile Logistics

“We’re thrilled to partner with premier investors to accelerate our vision to empower local economies by being the last mile logistics layer,” Xu said.

Delivery companies like DoorDash have been slowly shifting their focus away from simply facilitating delivery to creating robust digital products for both consumers and restaurant partners. Point of sale integration, white label technology, payment processing, and improved systems for couriers are all part of the package.

This growth round was co-led by Coatue Management and DST Global.

Up Next

Experiences

How Travel Brands Can Seize the ‘Q5’ Opportunity on TikTok

Driven by increased spending on experiences and the digital habits of younger audiences, TikTok has emerged as a key platform for inspiring and shaping travel decisions. Leveraging the platform’s reach early in the year presents a unique opportunity for travel brands to connect with eager travelers.
Sponsored
Short-Term Rentals

Inside the Vacasa Bidding War — The Unfolding Battle

With Davidson Kempner's latest bid for Vacasa at $5.83 per share and the Vacasa board-endorsed bid from Casago at $5.30 per share, one thing is certain — this is not the end of the story.