Food ordering and delivery company DoorDash announced that it has raised $250 million in a growth round co-led by Coatue Management and DST Global.
This latest funding comes after it received a $535 million investment from SoftBank, Sequoia Capital and Singapore-based sovereign wealth fund GIC earlier this year, bringing the food delivery company a $1.4 billion valuation.
With more than 250 percent year-over-year growth, DoorDash is now the fastest growing last mile logistics platform in the U.S. Since January, the company’s geographic footprint has nearly doubled to more than 1,000 cities across the U.S. and Canada and is on pace to reach 2,000 cities this year.
In addition, DoorDash recently announced partnerships with Chipotle, IHOP, Red Lobster and White Castle, and signed an exclusive partnership with The Cheesecake Factory.
“DoorDash is gaining market share faster than anyone in the space,” DoorDash CEO and co-founder Tony Xu said in a press release. “We're thrilled to partner with premier investors to accelerate our vision to empower local economies by being the last mile logistics layer.”
The company is thinking beyond restaurant delivery. Earlier this year, it formed a national grocery delivery partnership with Walmart that has now expanded to nearly 300 stores, in 20 states, in the last four months. And earlier this month, DoorDash launched DashPass, a new subscription service that helps users save money by giving them unlimited access to restaurants in their area.
With the service, which costs $9.99 a month, users get free delivery on orders of $15 or more. The company said in a blog post that DashPass membership pays for itself with just three orders each month. What’s more, customers can cancel the service whenever they want.
“Over the past few years we’ve watched closely as the last mile logistics space has exploded with innovation and competition,” said Thomas Laffont, senior managing director at Coatue Management. “DoorDash’s rapid growth has moved them from an ‘if’ company to a ‘when’ company and we are thrilled to help accelerate their already strong momentum.”
