Morning Report: Delivery unicorn DoorDash has raised an additional $250 million, heating the competitive on-demand food space even more.
Just months after picking up $535 million from , food delivery company����has secured an additional in capital. The round was co-led by and .
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This is the known seventh fundraising event for the five-year-old company. The round brings DoorDash���s total funds raised to $971.8 million, . The company���s previous investors include , which led it���s in March 2016, , , and , among others.
The food delivery market is tight���DoorDash, valued at $4 billion (post-money), faces a host of competitors in the space, most notably�� and . Postmates has raised , including $140 million at a����post-money��valuation. GrubHub, which hit the New York Stock Exchange in 2014, has a market cap of $11.1 billion. Other competitors like ( for $90 million in 2014), and have also made moves in food delivery.
DoorDash isn���t just competing in meal delivery, however. The company with Walmart for its pilot grocery delivery platform in April of this year. In that effort, the company faces competition with , and .
DoorDash CEO said his company, which wasn���t actively fundraising, accepted fundraising bids to accelerate expansion, . DoorDash it has expanded its partnerships and moved to more than 1,000 cities in the U.S. and Canada, aiming to double that by the end of this year.
In a high-cost industry like food delivery, deep pockets are a nearly-required war chest to support that kind of rapid expansion. And if a company plans to dominate that market, extra capital is always welcome.
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