DoorDash Secures $535 Million in Funding from SoftBank, Sequoia, and GIC to Expand its On-Demand Platform
Backing follows accelerating growth rate and increasing profitability as company gears up to lead in last-mile logistics
SAN FRANCISCO, March 1, 2018 /PRNewswire/ -- Today DoorDash announced that it raised $535 million in Series D funding led by the SoftBank Group ("SoftBank") with participation from existing investors Sequoia Capital, GIC and Wellcome Trust. This is the largest financing to date by a U.S. restaurant delivery platform. SoftBank's Jeffrey Housenbold and GIC's Jeremy Kranz will join Sequoia's Alfred Lin and Kleiner Perkins' John Doerr on DoorDash's board of directors.
In just four years, DoorDash has distinguished itself in the restaurant delivery space by partnering with nearly 90 percent of the top 100 U.S. restaurant brands who offer on-demand delivery. In 2017 the company added leading partners such as Wendy's, Chick-Fil-A, Wingstop, IHOP and Five Guys to its already robust 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 its selection advantage by building more technology for merchants, which 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. The Drive platform has grown 1,300 percent year-over-year. Building on Drive's ability to fulfill any type of order, DoorDash is becoming a last-mile logistics platform that can power deliveries beyond food, whether for retail or other types of partners.
"Our vision for DoorDash is to build the last-mile logistics layer to empower every business to thrive in the digital and convenience economy," said DoorDash CEO and co-founder, Tony Xu. "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, while growing gross profits six fold year-over-year. This fast and sustainable growth played a role in the investors' enthusiasm for the company. DoorDash's growth rate has accelerated further in 2018, and this year the company is expected to triple its geographic footprint from 600 to 1,600 cities and hire more than 250 people across its corporate offices.
"DoorDash's technology advantages, exceptional management team and relentless merchant focus are reflected in their stunning growth and impressive unit economics," said Jeffrey Housenbold, managing partner at SoftBank Investment Advisers. "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."
"DoorDash has always stood apart from the pack in its restaurant-first approach and operational execution," said Alfred Lin, partner at Sequoia and DoorDash board member. "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."
About DoorDash
DoorDash is a technology company that connects customers with their favorite local and national businesses in more than 600 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.
SOURCE DoorDash
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