DoorDash, the restaurant delivery startup, announced yesterday that it has raised another $250 million in a “growth round” co-led by Coatue Management and DST Global. This new funds come just months after the company raised $535 million in March. This brings the total amount raised by DoorDash to $971.8 million and the company valuation to $4 billion.
In a press announcement, DoorDash said that since January it has doubled its geographic footprint to more than 1,000 cities across the U.S. and Canada, and will double that number by the end of this year. As we’ve reported, DoorDash has also been on a tear signing delivery partnerships with White Castle, Red Lobster, Chipotle, and more. The company said it has expanded its nascent grocery delivery for Walmart to nearly 300 stores in 20 states over the last four months.
Sales at restaurants have been booming in general and hit $61.6 billion in July. While delivery orders account for just 3 percent of all restaurant orders, research from NPD Group shows that delivery visits are up 10 percent and sales have grown by 20 percent since 2012.
With a market this big and growing, it’s not hard to see why DoorDash wanted to bulk up its war chest while it can as it battles the likes of Uber Eats and GrubHub for market share. Personally, I just hope they spend most of this new money on moonshots like robot or drone delivery.