Doordash Net Worth: DoorDash, Inc. is a San Francisco-based online platform for food ordering and delivery. It has a 56% market share, making it the largest food delivery company in the United States. The net worth of DoorDash is estimated to be $16 billion as of 2020. In 2021, DoorDash went public on the New York Stock Exchange at a $72 billion valuation.
It also enjoys a 60% market share of convenience delivery services. As of December 31, 2020, Dordash has provided more than 20,000,000 consumers, 1 million deliverers, and 450,000 merchants.
DoorDash, in a Glance
| Company | DoorDash inc. |
| Date of Inception | July 2013 |
| Headquarter | San Francisco, California, US |
| Co-Founders |
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| Business Type | Public |
| Industry | Food Delivery |
| Revenue in 2020 | $2.9 billion |
| Profit in 2020 | $461 million |
| Number of Customers in 2020 | 18 million |
| Number of Subscribers in 2021 | 5 million |
| Number of Restaurants in 2021 | 390,000 |
| US Market Share in 2020 {%} | 45% |
| Tony Xu Net Worth in 2021 | $3.3 billion |
| DoorDash Net Worth in 2020 | $16 billion |
How Doordash began?
In 2012, a macaroon store owner asked for help for deliveries from Stanford University students, namely Tony Xu, Andy Fang, Stanley Tang, and Evan Moore, using technology. They were doing a delivery business on a mobile app for small business owners.
In January 2013, they initiated PaloAltoDelivery.com in Palo Alto, California, catering to the customers who were mostly students of the Stanford University campus. In summer 2013, Y Combinator provided $120,000 as seed capital in trade for a 7% stake. In June 2013, PaloAltoDelivery.com registered as DoorDash, inc.
In October 2017, Mike Dinsdale resigned as CFO of DoorDash, working less than a year for the company.
In December 2018, DoorDash surpassed Uber Eats to capture the second-largest share of total US food delivery sales, only behind GrubHub. By March 2019, it beat GrubHub with a 27.6% share in the on-demand delivery market’s total sales, at 27.6%.
In early 2019, DoorDash became the largest food delivery provider in the US as per consumers’ spending. It held the top market position throughout the year 2019.
In October 2019, DoorDash started its first ghost kitchen, DoorDash Kitchen, with four restaurants operating in Redwood City, California.
By June 2020, DoorDash heaved more than $2.5 billion through several financing rounds from various investors, including Y Combinator, SoftBank Group, Charles River Ventures, SV Angel, Khosla Ventures, Sequoia Capital, GIC, and Kleiner Perkins.
Consequences of Covid-19
In April 2020, during the COVID-19, DoorDash offered tens of thousands of free gloves and bottles of hand sanitizers to delivery drivers. The company also changed the routine drop-off option to contactless delivery. That month witnessed DoorDash becoming the fastest-growing food delivery service.
In October 2020, the company reopened its delivery services from brick-and-mortar restaurants, closed due to the COVID-19 pandemic. It partnered with local ghost kitchen operators to offer food delivery and takeaway service only.
In November 2020, DoorDash opened its first-ever physical restaurant in partnership with Bay Area restaurant Burma Bites to offer delivery and takeaway orders.
On December 9, 2020, the company registered as a public company with an initial public offering, raising $3.37 billion.
Tony Xu, Co-Founder of DoorDash
Tony Xu, born in 1985 as Xu Xun, is a billionaire Chinese-American technology executive, co-founder, and CEO of DoorDash. In 2013, he co-founded DoorDash with Evan Moore, Andy Fang, and Stanley Tang. He has previously worked for Square, eBay, and McKinsey.
Xu’s net worth is an estimated $3.3 billion as of 2021.
Acquisitions
Caviar: In October 2019, DoorDash acquired Caviar from Square, Inc. for $410 million. It was specific to food delivery services dealing with upscale urban-area restaurants that typically do not offer delivery services,
Scotty Labs: In August 2019, the company acquired Scotty Labs. It was a teleoperations company focused on self-driving and remote-controlled vehicle technology.
Chowbotics: On February 8, 2021, DoorDash acquired Chowbotic. It was a robotics company known for using a salad-making robot.
Controversies and Criticism
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Ceasing Tips
New York Times, The Verge and Vox, and Gothamist criticized the company’s tipping policy in July 2019. DoorDash pays drivers a guaranteed minimum amount of money per order. The bad practice of the company did not allow the drivers to keep the tips. Rather the tip would go first to the company to cover the guaranteed minimum.
Drivers would only get the part of the tip that exceeded the minimum. A DoorDash customer went to court to file a class-action lawsuit against the company’s “materially false and misleading” tipping policy. In August 2020, the case was referred to as arbitration.
Read Also: Uber Net Worth 2021, History, Founders, CEO, & More
Being under pressure, the company had to revise its policy. DoorDash settled the lawsuit with District of Columbia Attorney General Karl Racine for $2.5 million. The funds went to deliverers, the government, and charities.
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Antitrust Litigation
In April 2020, Davitashvili v GrubHub Inc. DoorDash, Grubhub, Postmates, and Uber Eats were accused of monopolistic power in the lawsuit. According to complainants, they only list those restaurants on their apps if the owners signed specific contracts.
The contracts include clauses such as the owners would set prices for customers receiving delivery the same as for dine-in customers. The complainants stated that this agreement increases the cost for dine-in customers, as they were required to subsidize the cost of delivery.
The apps charge overpriced fees, ranging from 13% to 40% of revenue compared to the average restaurant’s profit that ranges from 3% to 9% of revenue. The lawsuit sought to pay for damages by the defendants since April 14, 2016, for dine-in and delivery customers in the United States who used the defendants’ delivery apps. The case is still in process.
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Data Security
On May 4, 2019, DoorDash confirmed a data breach that caused the stealing of sensitive information of 4.9 million customers, delivery workers, and merchants. The customers who joined the app after April 5, 2018, are safe from the breach.
Conclusion
DoorDash began as a humble start-up, but with dedication and persistence by the four founders, it becomes the number one food delivery service in the US. Its revenue increased by 241 percent in 2020, from $850 million to $2.9 billion.
The net worth of the company’s CEO, Tony Xu, is estimated to be $3.3 billion, while the net worth of DashDoor is $16 billion as of 2020.
Amelia Warner
Amelia Warner writes all the Latest Articles. She mostly covers Entertainment topics, but at times loves to write about movie reviews as well.