Popular restaurant delivery service DoorDash has raised $250 million in funding co-led by Coatue Management and DST Global. DoorDash previously raised $535 million in March and the company has now raised a total of $971.8 million. DoorDash was given a $4 billion valuation with this latest round of funding.
DoorDash has seen over 250% year-over-year growth and its footprint more than doubled to over 1,000 cities across the U.S. and Canada.
Later this year, DoorDash is expected to reach 2,000 cities. Plus DoorDash has added over 100 restaurants “than all other industry players combined.”
DoorDash recently announced partnerships with Chipotle, IHOP, Red Lobster, and White Castle. And an exclusive partnership was signed with The Cheesecake Factory. DoorDash also recently debuted a DashPass subscription service and Pickup feature.
DoorDash’s core Drive platform enables merchants to offer delivery to customers that have placed orders directly through the restaurant.
Earlier this year, DoorDash also announced a grocery delivery partnership with Walmart — which has been expanded to almost 300 stores in 20 states over the last four months.
“DoorDash is gaining market share faster than anyone in the space,” said DoorDash CEO and co-founder Tony Xu in a statement. “We’re thrilled to partner with premier investors to accelerate our vision to empower local economies by being the last mile logistics layer.”
The average delivery fee on DoorDash is under $5 (aside from tips that customers give). DoorDash generates revenue by taking a 20% commission from restaurants. And DoorDash’s biggest rivals include GrubHub, Postmates and Uber Eats.
DoorDash was launched out of San Francisco in 2013. Some of DoorDash’s other investors include Charles River Ventures, GIC, Khosla Ventures, Kleiner Perkins, Sequoia Capital, SoftBank, Wellcome Trust, and Y Combinator.