Rewind the tape a few years and on-demand startups were nowhere. As the market learned how expensive it was to build a delivery startup at scale, capital became scarce.
Back in 2016 being an on-demand startup was hard. Postmates had to raise at a flat valuation, and DoorDash missed its target of becoming a unicorn by around $300 million. In the same year, on-demand food startup SpoonRocket shut down amidst what TechCrunch called the “on-demand apocalypse.”
…DoorDash is raising “at least $500 million” at a valuation of “about $13 billion” according to Bloomberg. The Wall Street Journal writes that DoorDash is looking for “between $650 million and $750 million” at a post-money valuation that “would approach $13 billion.” And finally, The Information first broke the news that DoorDash was looking to raise new capital at a valuation north of $10 billion.