DoorDash, the San Francisco based food delivery startup, seems to have achieved a huge feat in the business recently while emerging as the dark horse, as far as the competition in this particular business is concerned. The Wall Street Journal recently reported that the company is raising nearly $500 million at one of the valuations between $6 billion and $7 billion, while the other competitors such as Uber as well as Postmates have decided to go public recently.
The company is expected to use this funding to grow its lead among all the food delivery startups in the country. In November 2018, it overtook Uber Eats in the share of all the food delivery sales particularly in the United States, as per the analysis done by some companies based on the anonymous credit card transaction data. This made the company second only to one other company named Grubhub, which is the parent company of Eat24 and Seamless, in terms of the overall market share for the online food delivery, as per the data provided by a company named Second Measure.
While the food delivery business in certainly not an innovation, this still hasn’t stopped this particular sector from attracting some billions of dollars from many venture capitalists. But despite that, the competition is ugly in this case as well, and many of the companies that entered in this market have either been sold or have gone out of the business because of some reasons. But the companies such as DoorDash and Uber have still survived the test of time and are competing to see who comes out on the top in the coming years. The startup DoorDash has grown surprisingly well in these years after being founded in the year 2013 with a model that was quite similar to the company Postmates.