How Small Restaurants Are Doorstopping DoorDash

DoorDash has been a delivery service on the go, particularly throughout the summer and in the fall of 2018. Its war chest has recently swollen with a recent $250 million funding round co-led by Coatue Management and DST Global. That followed a $535 million round led by SoftBank, Sequoia Capital and GIC earlier this year, bringing the food delivery company to a $1.4 billion valuation.

And that big valuation has come with big expansions. In early August, DoorDash announced it was dipping its toe into the subscription market with the launch of DashPass. The service charges users $9.00 in exchange for free delivery on orders of $15 or more. In its blog post announcing the service, the firm noted that it is well-designed for frequent order-out fans, as the pass essentially pays for itself within three orders per month.


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