Delivery startup DoorDash, which is backed by investing giants like SoftBank Group and Sequoia Capital, has received an investment of $100 million, according to a report by Bloomberg.
The company has already raised about $2 billion so far, and it was recently on the receiving end of a $600 million funding round in May, which was led by Darsana Capital Partners.
The new capital is courtesy of the T. Rowe Price Group, which is investing in DoorDash for the first time as part of the same funding round.
DoorDash has raised about two-thirds of its $2 billion in the last year and a half. The company, which was founded in 2013, has so far been unprofitable, but it has a valuation of $12.6 billion.
DoorDash makes up about 35 percent of the food delivery market, making it the most dominant company in the space. It has been fortunate to take advantage of the SoftBank investing method, where companies can use the money to subsidize prices and gain market share from competitors.
However, SoftBank has recently had some high-profile misses, like Uber and WeWork, who prioritized growth over being profitable. The company has been facing the consequences with lower share prices and, in the case of WeWork, a failed IPO.
DoorDash had previously been under the microscope for the way it compensated its workers. The company would use a generous tip to even out a worker’s pay, which caused an issue with workers who felt that tipping should be on top of a base wage. The company eventually changed its policy to reflect that.
After the changes, a consulting firm found that payments to drivers went up about 12.5 percent on average. Average worker earnings are about $18.50 an hour.
Other notable companies have invested in DoorDash, including DST Global, Temasek Holdings, Dragoneer Investment Group and others.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More