SAN FRANCISCO — Doordash, the nation’s leading food delivery service, has picked up $400 million in a Series H funding round led by new investors Durable Capital Partners LP and mutual fund giant Fidelity Management & Research Co., as well as existing investors, funds and accounts advised by T. Rowe Price Associates, Inc.
The new investment gives Doordash an estimated value of $16 billion. The service has seen a surge in popularity due to the pandemic as restaurants closed their dining rooms and customers sheltered in their homes or apartments.
In May, 29 percent of American consumers ordered from one of the major food delivery services according to research firm Second Measure, up from 23 percent a year ago. Second Measure says Doordash has 45% of market share on food delivery spending in May with Grubhub second at 23% and Uber Eats at 22%.
Doordash is dominant in its hometown of San Francisco with 64% market share to 15% for Grubhub and 14% for Uber Eats. Grubhub is being acquired by Just Eat Takeway of the Netherlands for $7.3 billion in a deal announced earlier this month.
Doordash reportedly lost $450 million in 2019 according to The New York Times and is considering a potential IPO later this year or next.
“DoorDash has pioneered a unique logistics platform that facilitates the delivery of food, groceries, and household essentials and has become ingrained in the lives of local communities as an essential service. We are excited to invest in this excellent team,” said Henry Ellenbogen of Durable Capital Partners LP. “More important than ever, DoorDash is innovating on products and services that power local commerce and enhance their larger community including Dashers, customers, and merchants. We believe in this company and the team.”