DoorDash receives $17.3 million in funding

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DoorDash is an on-demand food delivery startup that has raised $17.3 million from new investor Sequoia Capital with participation from Khosla Ventures, Charles River Ventures, Pejman Mar Ventures, and Ted Zagat. Alfred Lin of Sequoia is joining the board of directors at DoorDash.

Even though DoorDash is limited to Palo Alto, Mountain View, and San Jose, the company generated tens of millions of dollars in gross sales. Around one in six households have ordered from DoorDash too, according to company estimates.

DoorDash’s technology around food delivery is impressive. The company’s dispatch system self-learns and adapts to variables based on driver inventory, expected demand, and time of day. The company also has a capacity-planning algorithm to make sure that it has the right number of drivers available at any given time.

The drivers make sure not to show up too early and wait for meals to be completed. They also do not show up too late while food gets cold. Drivers have access to a driver-routing algorithm for taking the smartest route between shops and a customer’s home.

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