DoorDash

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DoorDash Inc.
Privately held company
IndustryLogistics
FoundedJune 2013; 6 years ago (2013-06)
Palo Alto, California, U.S.
FoundersAndy Fang
Stanley Tang
Evan Moore
Tony Xu
Headquarters
San Francisco, California, U.S.
Key people
Andy Fang (CTO)
Tony Xu (CEO)
Prabir Adarkar (CFO)
Christopher Payne (COO)
Number of employees
6,300 (2019)
Websitedoordash.com

DoorDash Inc. is a San Francisco–based on-demand food delivery service[1] founded in 2013 by Stanford students Andy Fang, Stanley Tang, Tony Xu and Evan Moore.[2] A Y Combinator–backed company, DoorDash is one of several technology companies that uses logistics services to offer food delivery from restaurants on-demand.[3] DoorDash launched in Palo Alto and has since expanded to 56 markets[4] and more than 600 cities[4] across North America.

History[edit]

DoorDash has raised more than $700 million[5] over several financing rounds from investors including Charles River Ventures, SV Angel, Khosla Ventures, Sequoia Capital, SoftBank, GIC,[6] and Kleiner Perkins.[7] DoorDash was valued at $1.4 billion in 2018 during a round of funding.[8]

In October 2017, CFO Mike Dinsdale left DoorDash less than a year after he started working with the company.[9]

In March 2018, DoorDash raised $535 million in a Series D round led by the SoftBank Group with participation from existing investors Sequoia Capital, GIC and Wellcome Trust.[10]

In April 2018, DoorDash ventured into grocery delivery through a partnership with Walmart.[11]

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.[12] By March 2019, it had exceeded legacy leader GrubHub in total sales, at 27.6% of the on-demand delivery market.[13]

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.[14] 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.[14]

As of June 2019 DoorDash remains the leading food delivery service in the United States.[15]

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.[16]

Criticism and lawsuits[edit]

On November 6, 2015, In-N-Out Burger filed a lawsuit against DoorDash claiming trademark infringement and unfair competition.[17] Two months later the lawsuit was dismissed. DoorDash no longer delivers food from In-N-Out Burger.[18]

Burger Antics has filed a lawsuit to get them to stop delivering their food after receiving complaints from their customers.[18]

DoorDash delivery workers filed a class action lawsuit for being misclassified as independent contractors. DoorDash agreed to pay $5 million.[19]

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."[20][21][22] 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.[23] As of March 8 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.[24][22]

References[edit]

  1. ^ "DoorDash About Page". DoorDash. Retrieved June 20, 2015.
  2. ^ Steven Levy (November 9, 2015). "DOORDASH WANTS TO OWN THE LAST MILE". Wired. Retrieved May 25, 2019.
  3. ^ Anna Roth (June 26, 2013). "Filler App: How Tech Companies Are Disrupting Restaurant Delivery". SF Weekly. Retrieved February 26, 2014.
  4. ^ a b "I'm DoorDash CEO Tony Xu, and This Is How I Work". Los Angeles Times. 2017-12-27. Retrieved 2017-04-04.
  5. ^ Richard Waters (March 1, 2018). "SoftBank leads $535m investment in food delivery start-up". Financial Times.
  6. ^ "Data Sheet—What DoorDash Plans to Do With Another Half a Billion Dollars of Capital". fortune.com. Retrieved 2018-04-26.
  7. ^ "DoorDash Crunchbase". Crunchbase. Retrieved June 20, 2015.
  8. ^ "DoorDash raises $535M, now valued at $1.4B – TechCrunch". techcrunch.com. Retrieved 2018-04-26.
  9. ^ Dickey, Megan Rose (2017-10-25). "DoorDash CFO leaves less than one year after joining". TechCrunch. Retrieved 2017-10-26.
  10. ^ Carson, Biz. "DoorDash Raises $535 Million To Fuel Food Delivery War". Forbes.
  11. ^ Gartenberg, Chaim (24 April 2018). "Walmart tests grocery deliveries via DoorDash". The Verge. Retrieved 24 April 2018.
  12. ^ Griswold, Alison. "DoorDash has overtaken Uber Eats in US online food delivery". Quartz. Retrieved Jul 16, 2019.
  13. ^ "DoorDash Has Pulled Ahead of GrubHub, Uber Eats in the On-Demand Food Delivery Race". Fortune. Retrieved Jul 16, 2019.
  14. ^ a b "DoorDash Is Raising at Least $500 Million in Funding". 2019-05-22. Retrieved 2019-05-23.
  15. ^ Griswold, Alison. "DoorDash has unseated Grubhub as the leader in US online food delivery". Quartz. Retrieved 2019-06-23.
  16. ^ Griffith, Erin. "DoorDash Buys Rival, Caviar, for $410 Million". The New York Times Company. pp. B8. Retrieved 2 August 2019.
  17. ^ "Complaint" (PDF). PacerMonitor. Retrieved November 13, 2015.
  18. ^ a b Channick, Robert. "Suburban restaurant in DoorDash lawsuit: Stop delivering our food". chicagotribune.com.
  19. ^ "DoorDash will pay $5 million to settle class-action lawsuit over independent contractors". 11 April 2017.
  20. ^ Newman, Andy (2019-07-21). "My Frantic Life as a Cab-Dodging, Tip-Chasing Food App Deliveryman". The New York Times. ISSN 0362-4331. Retrieved 2019-07-23.
  21. ^ Vincent, James (2019-07-22). "Delivery apps like DoorDash are using your tips to pay workers' wages". The Verge. Retrieved 2019-07-23.
  22. ^ a b Lampen, Claire (July 30, 2019). "Brooklyn Man Sues DoorDash Over Grifty, Misleading Tip Policy". Gothamist.
  23. ^ https://www.nytimes.com/2019/07/24/nyregion/doordash-tip-policy.html
  24. ^ Wayt, Theo (July 29, 1029). "Brooklyn man sues DoorDash for 'misleading' tipping policy". New York Post.