|Privately held company|
Palo Alto, California, U.S.
San Francisco, California, U.S.
|Andy Fang (CTO) |
Tony Xu (CEO)
Prabir Adarkar (CFO)
Christopher Payne (COO)
Number of employees
DoorDash Inc. is a San Francisco–based on-demand food delivery service founded in 2013 by Stanford students Andy Fang, Stanley Tang, Tony Xu and Evan Moore. A Y Combinator–backed company, DoorDash is one of several technology companies that uses logistics services to offer food delivery from restaurants on-demand. DoorDash launched in Palo Alto and has since expanded to 56 markets and more than 600 cities across North America.
DoorDash has raised more than $700 million over several financing rounds from investors including Charles River Ventures, SV Angel, Khosla Ventures, Sequoia Capital, SoftBank, GIC, and Kleiner Perkins. DoorDash was valued at $1.4 billion in 2018 during a round of funding.
In October 2017, CFO Mike Dinsdale left DoorDash less than a year after he started working with the company.
It was reported in December 2018 that DoorDash overtook Uber Eats to hold the second position in total US food delivery sales, behind only GrubHub. By March 2019, it had exceeded legacy leader GrubHub in total sales, at 27.6% of the on-demand delivery market.
In February 2019 DoorDash raised $400 million investment, bringing the company's total funding to $1.4 billon and reached total valuation of $7.1 billion. As of May 2019 DoorDash is said to be raising an additional $600 million in funding, which has the potential to easily exceed this estimate.
As of June 2019 DoorDash remains the leading food delivery service in the United States.
On August 1, 2019, DoorDash announced the acquisition of Caviar, a service specializing in food delivery for upscale urban-area restaurants that typically do not offer delivery. The purchase price was $410 million.
Criticism and lawsuits
On November 6, 2015, In-N-Out Burger filed a lawsuit against DoorDash claiming trademark infringement and unfair competition. Two months later the lawsuit was dismissed. DoorDash no longer delivers food from In-N-Out Burger.
Burger Antics has filed a lawsuit to get them to stop delivering their food after receiving complaints from their customers.
DoorDash delivery workers filed a class action lawsuit for being misclassified as independent contractors. DoorDash agreed to pay $5 million.
In July 2019, DoorDash attracted criticism from several publications, including the The New York Times and The Verge, for its tipping policy, which, according to Gothamist "really looks, feels, and smells like a swindle." Drivers receive a guaranteed minimum per order, which is paid by DoorDash by default. When a customer adds a tip, instead of going to the driver, it first goes to the company up to the point that the company no longer has to pay the driver the guaranteed minimum. Drivers then only receive the part of the tip that exceeds the minimum. DoorDash announced plans to change its pay model shortly after the New York Times story. As of March 8[update] it has not changed. A week after the Times article, a DoorDash customer filed a class action lawsuit against the company for its "materially false and misleading" tipping policy.
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