Doordash
Doordash
 | |
Type | Privately held company |
|---|---|
| Industry | Logistics |
| Founded | June 2013 Palo Alto, California, U.S. |
| Founders | Andy Fang Stanley Tang Evan Moore Tony Xu |
| Headquarters | Rialto Building San Francisco, California, U.S. |
Key people | Andy Fang (CTO) Tony Xu (CEO) Prabir Adarkar (CFO) Christopher Payne (COO) |
Number of employees | 6,300 (2019) |
| Website | doordash.com [31] |
DoorDash Inc. is a San Francisco–based on-demand food delivery service[1] founded in 2013 by Stanford students Andy Fang, Stanley Tang, Tony Xu and Evan Moore.[2] A Y Combinator–backed company, DoorDash is one of several technology companies that uses logistics services to offer food delivery from restaurants on-demand.[3] DoorDash launched in Palo Alto and has since expanded to 56 markets[4] and more than 600 cities[4] across North America.
| |
Type | Privately held company |
|---|---|
| Industry | Logistics |
| Founded | June 2013 Palo Alto, California, U.S. |
| Founders | Andy Fang Stanley Tang Evan Moore Tony Xu |
| Headquarters | Rialto Building San Francisco, California, U.S. |
Key people | Andy Fang (CTO) Tony Xu (CEO) Prabir Adarkar (CFO) Christopher Payne (COO) |
Number of employees | 6,300 (2019) |
| Website | doordash.com [31] |
History
In October 2017, CFO Mike Dinsdale left DoorDash less than a year after he started working with the company.[9]
In March 2018, DoorDash raised $535 million in a Series D round led by the SoftBank Group with participation from existing investors Sequoia Capital, GIC and Wellcome Trust.[10]
In April 2018, DoorDash ventured into grocery delivery through a partnership with Walmart.[11]
In February 2019 DoorDash raised $400 million investment, bringing the company's total funding to $1.4 billon and reached total valuation of $7.1 billion.[14] As of May 2019 DoorDash is said to be raising an additional $600 million in funding, which has the potential to easily exceed this estimate.[14]
As of June 2019 DoorDash remains the leading food delivery service in the United States.[15]
On August 1, 2019, DoorDash announced the acquisition of Caviar, a service specializing in food delivery from upscale urban-area restaurants that typically do not offer delivery, from Square, Inc. The purchase price was $410 million.[16]
As of August 2019, DoorDash announced it will be partnering with Mercato, an e-commerce platform, to help expand its business and reach independent grocers and specialty stores.[19]
Criticism and lawsuits
Burger Antics has filed a lawsuit to get them to stop delivering their food after receiving complaints from their customers.[21]
DoorDash delivery workers filed a class action lawsuit for being misclassified as independent contractors. DoorDash agreed to pay $5 million.[22]
Tipped wage controversy
In July 2019, DoorDash attracted criticism from several publications, including The New York Times, and later The Verge and Vox, for its tipping policy, which, according to Gothamist "really looks, feels, and smells like a swindle."[23][24][25][26] Drivers receive a guaranteed minimum per order, which is paid by DoorDash by default. When a customer adds a tip, instead of going to the driver, it first goes to the company up to the point that the company no longer has to pay the driver the guaranteed minimum. Drivers then only receive the part of the tip that exceeds the minimum. DoorDash announced plans to change its pay model shortly after the New York Times story.[27] A week after the Times article, a DoorDash customer filed a class action lawsuit against the company for its "materially false and misleading" tipping policy.[28][26] On August 20, 2019, Vox released an article titled "DoorDash is still pocketing workers' tips, almost a month after it promised to stop".[29] On August 22, 2019, DoorDash announced an update to the tipping policy and promised to "roll it out to all Dashers next month" (that is, sometime in September 2019).[30]