DoorDash defines itself as a “technology company that connects customers with their favorite local and national businesses.” The company was founded in 2013 and covers 3,300 cities across North America. The technology platform also detailed that in the last year it has become the first on-demand technology platform to have operations in all 50 U.S. states, with services available to around 80% of Americans. Even more impressive is DoorDash’s disclosure that it has seen a year-over-year growth rate of 250%, as of August 2018.
The on-demand delivery platform announced that it has raised $400 million in Series F funding round at a valuation of $7.1 billion. The Series F round was led by Temasek and Dragoneer Investment Group, with participation from other existing investors: Softbank Vision Fund, Y Combinator, Sequoia Capital, DST Global, GIC, and Coatue Management. DoorDash says it plans to continue expanding its logistics platform and position for continuing strong growth. In fact, the company estimates it will be able to increase year-over-year growth to 325% in 2019. Here is the full press release detailing of the Series F raise:
SAN FRANCISCO–(BUSINESS WIRE)–Today, DoorDash announced that it raised $400 million in Series F financing at a $7.1 billion valuation co-led by Temasek and Dragoneer Investment Group with participation from existing investors Softbank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital, and Y Combinator. The investment will enable DoorDash to further accelerate its incredible momentum—increasing its growth rate from over 250 percent year-over-year at the time of the company’s last financing in August of 2018, to 325 percent in 2019—cementing DoorDash’s position as the fastest growing last-mile logistics company in the U.S.
“Last year, the culmination of more than four years of work came to fruition as we expanded our geographic footprint by over five times across the U.S. and Canada, launched and scaled DashPass to become the largest food delivery subscription product in our industry, and expanded beyond restaurants through our DoorDash Drive platform,” said Tony Xu, co-founder and CEO of DoorDash.
Over the last 12 months, the company broadened its coverage to more than 3,300 cities and became the first on-demand platform to operate in all 50 states. DoorDash is now available to 80 percent of Americans and has plans to reach every postal code in America.
In August 2018, the company launched its DashPass subscription service and in just six months it has become the fastest growing subscription service in the industry, adding more than 30,000 customers each week. DoorDash users can order with no delivery fee from marquee national restaurants, including Wendy’s, Chipotle, Buffalo Wild Wings and Burger King as well as local favorites such as Portillo’s in Chicago, Torchy’s Tacos in Texas and Mendocino Farms in Los Angeles.
DoorDash Drive, the last-mile logistics platform that powers direct delivery for any business, is poised to become the company’s second billion-dollar business with restaurant and grocery partnerships. Drive partners exclusively with restaurants such as Chipotle, Denny’s, Wingstop and Portillo’s, to power their web and mobile delivery. Since launching with Walmart in April 2018, the company has grown the partnership to become Walmart’s largest last-mile logistics partner for grocery.
This new funding enables DoorDash to reach new consumers and empower local businesses across America, continue developing innovative products and services that benefit all audiences, and enhance the capabilities of its last-mile logistics platform.
DoorDash is a technology company that connects customers with their favorite local and national businesses in more than 3,300 cities across the United States and Canada. Founded in 2013, DoorDash empowers merchants to grow their businesses by offering on-demand delivery, data-driven insights, and better in-store efficiency, providing delightful experiences from door to door. By building the last-mile delivery infrastructure for local cities, DoorDash is bringing communities closer, one doorstep at a time. Read more on the DoorDash blog or at www.doordash.com.