Friday, 23 May 2014

DoorDash Got $17.3 Million From Sequoia For On-Demand Delivery Services

The DoorDash is one of the prestigious On-demand food-delivery startups exited from past few years, company doing the business in the other filed also beyond food, recently DoorDash has announces a huge round funding from Sequoia Capital, it has great platform to go into the competition. The funding was around $17.3 million series funding led by Sequoia with other investors involved such as Khosla Ventures, Charles River Ventures, Pejman Mar Ventures and Ted Zagat from the Zagat Survey Fame. As the biggest investor Alfred Lin is joining the board of directors along side with the founder Stanley Tang, Andy Fang and Tony Xu. The funding is very useful for the firm now because firstly it was crowd funded and competitive food delivery space in the San Francisco Bay area because other companies have also raised money from investors and that makes the environment more competitive but that’s a lot of money for a company that operates only in Palo Alto, Mountain View and San Francisco.


Tech Crunch posted “For one thing, customers seem to love DoorDash — even in its limited launch area, the company has seen impressive growth. In 10 months making deliveries in the South Bay, it’s processed tens of millions of dollars in gross sales. And the company estimates that one in six households in the area has ordered from it.”

The thing that led Sequoia to invest that much money is the growth and consumer response and also they have seen a great opportunity into the company then just delivering then food. The Firms had developed some technology to proper deliver the food, It has a dispatch system that intelligently knows the different variables from the driver inventory and suggests the demand, also has a planning algorithm to make sure that the particular drivers are availed all time.

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