US restaurant delivery company DoorDash has raised $535 million in series D funding, led by the SoftBank Group with participation from existing investors Sequoia Capital, GIC and Wellcome Trust.
This is the largest financing to date by a US restaurant delivery platform and sees DoorDash challenge rival UberEats.
Since its foundation in 2013, DoorDash claims to have partnered with “nearly 90% of the top 100 US restaurant brands who offer on-demand delivery”. It now delivers meals in more than 600 cities in the US and Canada.
In 2017, the company added partners such as Wendy’s, Chick-Fil-A, Wingstop, IHOP and Five Guys to its set of national partners including The Cheesecake Factory, Jack In The Box, Buffalo Wild Wings and P.F. Chang’s.
With this funding, the company plans to expand by building more technology for merchants, which it claims will result in lower prices and faster delivery times for consumers.
As part of its merchant-first approach, the company plans to double down on DoorDash Drive, the platform that enables a merchant to offer delivery to customers that have placed orders directly with the restaurant.
CEO and co-founder Tony Xu said: “Our vision for DoorDash is to build the last-mile logistics layer to empower every business to thrive in the digital and convenience economy. Today’s investment by the most forward-looking firms in the world accelerates our ability to achieve this vision.”
In 2017, DoorDash more than doubled delivery volume and this year it plans triple its geographic footprint from 600 to 1,600 cities and hire more than 250 people across its corporate offices.
Jeffrey Housenbold, managing partner at SoftBank Investment Advisers, said: “DoorDash’s technology advantages, exceptional management team and relentless merchant focus are reflected in their stunning growth and impressive unit economics.
“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.”
As part of the investment, Housenhold and GIC’s Jeremy Kranz will join Sequoia’s Alfred Lin and Kleiner Perkins’ John Doerr on DoorDash’s board of directors.
Lin concluded: “DoorDash has always stood apart from the pack in its restaurant-first approach and operational execution. We’ve been impressed by the company’s progress since their series A, and they’ve proven that they have the team, technology and expertise to lead.”
© FoodBev Media Ltd 2024