DoorDash Lands $400 Million to Push Mobile Payments Food Delivery
Food delivery is easily one of the biggest new developments around. No longer the province of pizza places alone, food delivery is coming to just about any restaurant that wants it, and a growing number of options have emerged to fill in the gap between kitchen and diner. DoorDash is easily one of the biggest new developments around, and it recently took in a new funding round valued at $400 million to continue its push to greatness.
Thanks to the new nine-figure payday, reports note, DoorDash now has a positively staggering valuation of $7.1 billion total. The funding round was lead by Temasek Holdings and Dragoneer Investment Group, as well as several returning investors like Sequoia Capital and the SoftBank Vision Fund.
The market is primed for such events, particularly in light of reports that both Uber and Postmates are considering initial public offerings (IPOs). The reports noted, however, that these moves had nothing to do with the decision to put a hefty investment behind DoorDash. According to DoorDash’s CEO, Tony Xu, the plan was ultimately to “…double down each of the areas in terms of how we got here.” Additionally, Xu noted the plan to be “…betting on what’s been working.”
Not surprisingly, DoorDash hopes to use the cash to ramp up its available restaurants as well as its delivery radii. With DoorDash currently active in 3,300 cities in the US, it’s already made quite a move, but its ultimate plan is to hit every zip code in the US with delivery options and step up its Canadian operations besides.
This should prove welcome news to anyone who’s living outside of one of those 3,300 cities yet can’t get access to DoorDash, Postmates, or anything else that might resemble food delivery. With drone delivery seemingly hampered for good thanks to recalcitrant elements of the federal government—thanks a lot, FAA—delivery via cars, even self-driving cars, appears to be our last great option.
It will be great to see DoorDash expand, and with the kind of cash it’s got behind it, that expansion shouldn’t be too difficult to bring out in wider operation. Only time will tell if it goes as far as it can, though.