Investor appetite in food delivery companies is growing, notwithstanding a rash of customer complaints about how these startups pay contract workers. On Thursday, DoorDash announced it had raised another $400 million in a Series F funding round led by Temasek and Dragoneer Investment Group. The cash infusion brings DoorDash’s total capital raised to $1.4 billion, of which $978 million came from funding rounds in the last year.
The food delivery company is now worth $7.1 billion, says CEO and cofounder Tony Xu. That’s just a hair short of its closest publicly-traded rival Grubhub, whose market cap is currently hovering around $7.2 billion.
…Xu points to DoorDash’s expansion into more cities and more restaurants last year. The company now covers 80% of the U.S. (rivals Uber Eats and Grubhub cover over 70%) and it’s partnered with chains like Cheesecake Factory, Chipotle, and Denny’s. DoorDash is also investing heavily in non-restaurant delivery, like its partnership with Walmart. DoorDash would not disclose revenue or gross food sales numbers, but Xu says it is profitable in some of its oldest markets.