San Francisco-based startup DoorDash has emerged as the dark horse in the food delivery race.
As Postmates and Uber prepare to go public, DoorDash is raising another $500 million (paywall) at a valuation of between $6 billion and $7 billion, the Wall Street Journal reported. That would add to the nearly $1 billion the company has raised to date, most recently with a $250 million investment led by DST Global and Coatue Management at a $4 billion valuation in August 2018.
…DoorDash will likely use that funding to grow its come-from-behind lead among food delivery startups. In November 2018, DoorDash overtook Uber Eats in share of food delivery sales in the US, according to anonymized credit card transaction data that analytics company Second Measure provided Quartz. That made DoorDash second only to Grubhub, parent company of Seamless and Eat24, in terms of US market share for online food delivery, according to Second Measure’s data. DoorDash said it is a client of Second Measure.