- DoorDash, a US-based food delivery start-up, has received $400m in new funding led by Temasek and Dragoneer Investment Group (who has also invested in Uber and Instacart).
- The company has raised c$1.4bn, 90% of which was received in the past year.
- DoorDash aim to use the money to expand its geographic reach, and offer deliveries from grocery stores and other retailers, as they currently operate in 3,300 North American cities, up from 600 in March 2018.
Analysis and Comments
- With DoorDash we are seeing yet another food delivery company raising capital to grab market share. However, with limited differentiation it is tough to see all players prospering, especially with the tech being “replicable”.
- The Drive model is interesting – although as highlighted, others are already offering a market place type service: Uber to cut food delivery fees in battle with Deliveroo and Just Eat (FT)
- They also have non take away (take out) activities with applications around restocking of retail outlets for ice cream & a similar system for salads and smoothies to gyms, which are interesting but 3rd & 4th party logistics is already a sophisticated industry that makes extensive use of tech.