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.