DoorDash Raises More Money Ahead of IPO
The food delivery world remains red hot with market share leader DoorDash raising $400 million in Series H funding less than two weeks after Grubhub was acquired by Amsterdam-based Just Eat Takeaway.com.
For DoorDash, the $400 million in new funding was the 12th capital raise since the company was founded in 2013, giving it a valuation of $16 billion. Grubhub was acquired by Just Eat Takeaway.com on June 10 in an all-stock transaction valued at $7.3 billion. The latest funding round for DoorDash included new investors Durable Capital Partners LP and Fidelity Management & Research Co., while existing investors, funds and accounts were advised by T. Rowe Price Associates, Inc.
“DoorDash has pioneered a unique logistics platform that facilitates the delivery of food, groceries, and household essentials and has become ingrained in the lives of local communities as an essential service. We are excited to invest in this excellent team,” said Henry Ellenbogen of Durable Capital Partners LP. “More important than ever, DoorDash is innovating on products and services that power local commerce and enhance their larger community including Dashers, customers, and merchants. We believe in this company and the team.”
DoorDash said the new capital will support products and services that help merchants manage the changed operating environment, offer customers convenient and safe ways of ordering and shopping, and enable delivery workers, known as “Dashers” to continue making meaningful and flexible income when they need it most.
“Last month, we launched Main Street Strong, which includes a suite of programs, products, and policies geared towards helping our restaurant partners navigate the new normal and drive sales on the road to recovery,” according to a Doordash statement. “As part of this program, we have introduced new products like DoorDash Storefront, which enables restaurants to create their own online stores at the click of a button and seamlessly fulfill orders placed online. Today, the opportunity to do more for our merchants, Dashers, and consumers is bigger than ever, and we’re excited to continue leading from the front.”
Doordash operates in 4,000 cities and maintains that its app featuring 300,000 restaurants reaches 80% of Americans. The value proposition for restaurants, according to Doordash, is that 92% of orders come from entirely new customers and orders are delivered, on average, within 37 minutes.