News

DoorDash will use $400M investment to grow 325% this year

February 22, 2019

DoorDash has raised $400 million toward expansion of the app-based food delivery platform, which a news release said has already grown more than 250 percent since its last financing round last August. The company said it will grow its service 325 percent in 2019, with the help of this week's Series F financing, which has a $7.1 billion valuation. 

The investment, announced Thursday, is 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.

"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," DoorDash co-founder and CEO Tony Xu, said in the release. 

Over the last 12 months, the company expanded coverage to more than 3,300 cities and, according to its release, became the first on-demand platform to operate in all 50 states, making it now available to 80 percent of Americans. Likewise, since the August 2018 launch of its DashPass subscription service, it has added more than 30,000 customers each week. 

Additionally, its business-facing, last-mile logistics platform — DoorDash Drive — is poised to become the company's second billion-dollar business with restaurant and grocery partnerships, the release said. Drive partners with restaurants like Chipotle and Wingstop to power their web and mobile delivery and is now Walmart's largest last-mile logistics partner for grocery. DoorDash itself is now in more than 3,300 U.S. and Canadian cities.