Food ordering and delivery services like DoorDash have proven to be a boon during the COVID-19 pandemic. Now, thanks to the company’s latest funding round, we have insight into exactly how valuable this service is.
On Thursday, DoorDash announced that it raised approximately $400 million in a Series H funding round led by Durable Capital Partners LP and Fidelity. This brings the company’s valuation to almost $16 billion.
This is hardly the first nine-figure funding round that the delivery app has brought in. DoorDash raised $700 million in its extended Series G funding round last year, and it raised $400 million in its Series F. Investors must be eager to back DoorDash, because the company has raised $2.5 billion in outside funding since it was founded in 2013.
“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,” Henry Ellenbogen of investor Durable Capital Partners said in a statement. “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 food delivery space is crowded with many well-known competitors, including Grubhub, Caviar, Postmates and so on. So DoorDash does its best to stand out by delivering more than just food, and enabling deliveries from other local businesses too.
DoorDash recently announced its Main Street Strong initiative, which include a series of products and programs for restaurants recovering from the pandemic. One of these products is DoorDash Storefront, which helps restaurants create their own online stores.
As food delivery services like DoorDash reach this scale, it’s important for them to continue to innovate in order to keep growing. The company plans to do just that, and will use this new funding to support new products and services. It is also currently expanding and hiring for over 100 open roles across the organization.