DoorDash is primarily an online food delivery platform that started operations in 2013. The company is headquartered in Palo Alto, California. In addition to serving customers in its home country, DoorDash has also expanded its operations to countries such as Canada, Japan, Germany, and Australia. Apart from food, the company also allows users to place orders at grocery stores, pet stores, and other stores.
The idea is to get everything people need delivered to their doorsteps in the easiest way and in the shortest possible time. The company’s business model has also empowered people to find new ways to earn a living. In recent times, DoorDash has also been instrumental in providing last mile logistics support to local businesses.
The idea for DoorDash came to the founders when they were trying to use technology to solve problems faced by small business owners. One of the main issues we found was that small business owners often faced problems delivering goods to customers. Managing the store and taking care of deliveries at the same time was a real challenge. That’s when the founders decided to find a solution that could help small business owners with their deliveries.
DoorDash started as a pilot project, delivering food to the Stanford campus. With a good response, the platform was launched on a commercial scale. Currently, DoorDash is the largest food delivery platform in the United States. It holds around 57% market share in food delivery sales. The company has over 450,000 merchants on its platform and serves approximately 20 million customers.
DoorDash has received investments worth $2.5 billion through 12 funding rounds. The company had launched its IPO in 2020, which added $3.4 billion. Key DoorDash investors include Y Combinator, SV Angel, Khosla Ventures, Charles River Ventures, Kleiner Perkins, GIC, Sequoia Capital and SoftBank Group.
DoorDash has completed six acquisitions to date. The first was from Rickshaw in 2017. Rickshaw was a local delivery platform. In 2019, the company made three acquisitions. It included a tech company named lvl5, a food delivery platform named Caviar, and a tele-ops company named Scotty Labs. In February 2021, DoorDash acquired Chowbotics, an industrial automation company. The most recent acquisition was Wolt in November 2021. Wolt is a food delivery company.
DoorDash competes with other delivery platforms such as UberEats, Grubhub, Postmates, Deliveroo, and Instacart.
About the Founders
DoorDash was founded by Tony Xu, Evan Moore, Andy Fang and Stanley Tang. All four had studied at Stanford University. Tony Xu is currently CEO of DoorDash. Previously, he worked with companies such as McKinsey, eBay, PayPal, Square and Matrix Partners. Co-founder Andy Fang is currently CTO of DoorDash. He had previously worked at Facebook.
Co-founder Stanley Tang currently works as a product manager at DoorDash. He had previously worked at Facebook. Co-founder Evan Moore had worked with DoorDash as COO until June 2014. He is currently a partner at Khosla Ventures.