DoorDash Plans Significant Canadian Expansion in 2019
Photo Caption: DoorDash announced its 50th Canadian city on Wednesday. DoorDash
Skift Take
The international market provides ample opportunity for expansion as U.S.-based companies continue to attempt to keep up their pace of rapid growth.
Operating in over 4,000 cities and counting, DoorDash has set its sights on international expansion, starting with our neighbor to the north.
On Wednesday, DoorDash announced the addition of Winnipeg to its Canada roster, bringing its total Canadian footprint to 50 cities. The company plans to double that number by the end of the year in an effort to continue its explosive growth in what Brent Seals, DoorDash’s country director of Canada, called a “priority market” for 2019.
Canada offers far more expansion opportunity for the delivery service this year as compared to the U.S., where DoorDash already covers all 50 states.
The new launch also adds 300 restaurant partners to DoorDash’s roster, including a handful of exclusive agreements. DoorDash launched in Toronto and Vancouver in 2015. Its largest Canadian partners, according to Seals, are A&W, Nando’s, and Chipotle.
International Growth
For proof of DoorDash’s potential, look to its financial backing. The company received a $400 million round of funding in February, vaulting its valuation to $7.1 billion — up from a $1.4 billion valuation in March 2018.
DoorDash expanded aggressively last year, nearly quadrupling the number of cities it serves. According to research firm Edison Trends, as of February, DoorDash had edged out competitor Grubhub in market share, capturing 27.6 percent of the U.S. market.
International growth provides even more promise. According to Euromonitor International, consumers worldwide spent $795 billion on meals from home delivery, takeout, and the drive-thru in 2017.
DoorDash rival Uber Eats, whose parent company is expected to make its debut on the public market this month, claims to be the largest restaurant delivery service outside of China. The Uber Eats business generated $1.5 billion in revenue last year.
Local and global companies focused on food delivery have been experiencing rapid growth and expansion, not to mention an influx of investor cash. On Monday, Bloomberg reported an impending $1 billion investment in Latin America’s Rappi delivery service by SoftBank, a major stakeholder in both DoorDash and Uber.
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