The latest capital injection will go towards new products and services to address the changing commerce landscape. Proceeds from the latest financing round will further the company's quest to increase market share in the U.S., Canada, and Australia, the three countries where it operates
Fremont, CA: Food delivery company DoorDash secured approximately USD 400 million in a new financing round led by new investors, Durable Capital Partners LP and Fidelity Management & Research with participation from existing investors. The funds and accounts for the investment round were advised by T. Rowe Price Associates. The latest round of funding takes the company's valuation to nearly USD 16 billion. Since its inception in 2013, DoorDash has raised over USD 2.4 billion in venture funding.
“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."
The latest capital injection will go towards new products and services to address the changing commerce landscape. Proceeds will further the company's quest to increase market share in the U.S., Canada, and Australia, the three countries where it operates. The company overtook GrubHub last year to become the food delivery leader in the U.S. The startup continued to expand its grasp on the market, reaching a 45 percent share in May. The outbreak of coronavirus has played a significant role in the rising demand for food delivery. The impact has been across all delivery platforms, with figures nearly doubling from the start of the year.
Despite the COVID-19-related increase in food delivery, the question of profitability still casts a shadow across the industry, spurring a series of consolidations. These include last year's DoorDash-Caviar merger and GrubHub's acquisition by Just Eat Takeaway, which followed rumors of a takeover from Uber. DoorDash may be in a more stable position ahead of its IPO operations and are expected to break even for the quarter ending June 30.