It wouldn’t be hard to make an argument that perhaps deliver startups are struggling a bit to find profitability.
But today food delivery startup DoorDash raised $600 million dollars, bringing the company’s valuation to $12.6 billion.
And while of course this is all a private market valuation, there are still plenty of signs that the company is finding success. The company states in their own press release that they have grown 60% since February. While it’s difficult to get an exact explanation into what that growth truly represents without a look at their books, it’s still a promising sign for the company.
Several other delivery services are now traded on the public market, so it will be interesting to watch brand growth of the financially segmented companies. Public markets, reporting on a quarterly basis, can be a brutal ecosystem for a company with no path to profitbility, while private market startups don’t suffer the same scrutiny, at least not as frequently.
From their release:
- Our business has grown over 60% since our Series F
- We grew 280 percent year-on-year culminating in annualized GMV of $7.5B.
- We continued our geographic expansion to more than 4,000 cities across the U.S. and Canada, as we come closer to achieving our goal of serving every postal code in America. We also launched our 50th city in Canada, and are on track to serve 100 Canadian cities this year.
- Our DashPass subscription offering, the fastest growing in our industry, is now approaching one million customers.
- We continue to offer the widest selection with more than 340,000 stores on the platform.
- Building on the continued momentum of DoorDash Drive, our white-label fulfillment platform that powers direct delivery for any business, we announced last month our integration with Wegmans to power their Meals 2Go app. Drive partners exclusively with restaurants such as Chipotle, Denny’s, Portillo’s and Wingstop to power their web and mobile delivery, and has become Walmart’s largest last-mile logistics partner for grocery.
- We also launched a national partnership with Wyndham Hotels & Resorts to bring local dining favorites to guests on-demand across more than 3,700 hotels.