Category Archives: DoorDash

To fund Y Combinator’s top startups, VCs scoop them before Demo Day

Hundreds gathered this week at San Francisco’s Pier 48 to see the more than 200 companies in Y Combinator’s Winter 2019 cohort present their two-minute pitches. The audience of venture capitalists, who collectively manage hundreds of billions of dollars, noted their favorites. The very best investors, however, had already had their pick of the litter. What many don’t realize about the Demo Day tradition is that pitching isn’t a requirement; in fact, some YC graduates skip out on their stage opportunity altogether. Why? Because they’ve already raised […]

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DoorDash claims drivers made an average of at least $17.50/hour on deliveries in 2018

On-demand food delivery startup DoorDash has been under fire as of late for its practices around paying drivers. In an email to drivers today, obtained by TechCrunch, DoorDash said drivers received an average of $17.50 or more per hour on deliveries in 2018. That figure, of course, does not take into account cost of mileage, payroll taxes for 1099 independent contractors and other expenses. Sage Wilson, an organizer at nonprofit labor group Working Washington, explained to TechCrunch how that $17.50 per hour figure works out to less […]

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Startups Weekly: Flexport, Clutter and SoftBank’s blood money

The Wall Street Journal published a thought-provoking story this week, highlighting limited partners’ concerns with the SoftBank Vision Fund’s investment strategy. The fund’s “decision-making process is chaotic,” it’s over-paying for equity in top tech startups and it’s encouraging inflated valuations, sources told the WSJ. The report emerged during a particularly busy time for the Vision Fund, which this week led two notable VC deals in Clutter and Flexport, as well as participated in DoorDash’s $400 million round; more on all those below. So given all this SoftBank […]

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DoorDash raises $400M round, now valued at $7.1B

Delivery company DoorDash is announcing that it has raised $400 million in Series F financing. Earlier this month, The Wall Street Journal reported that the company was looking to raise $500 million at a valuation of $6 billion or more. In fact, DoorDash now says the funding came at a $7.1 billion valuation. The round was led by Temasek and Dragoneer Investment Group, with participation from previous investors SoftBank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital and Y Combinator. DoorDash has been raising money at […]

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DoorDash subsidizes driver wages with tips

It’s true that DoorDash offsets the amount it pays its drivers with customer tip, according to an FAQ page on its own site. “For each delivery, you will always receive at least $1 from DoorDash plus 100% of the customer tip,” DoorDash states on a Dasher FAQ page. “Where that sum is less than the guaranteed amount, DoorDash will provide a pay boost to make sure you receive the guaranteed amount. Where that sum is more than the guaranteed amount, you pocket the extra amount.” To be clear, […]

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DoorDash is reportedly raising $500M at a $6B+ valuation

Just days after Postmates filed confidential paperwork for an initial public offering, the latest news in the on-demand delivery space is that competitor DoorDash is in the process of raising a $500 million round, The Wall Street Journal reports. The round would reportedly value DoorDash at more than $6 billion and possibly up to $7 billion. According to the WSJ, Temasek Holdings Pte., Singapore’s state investment firm, is expected to lead the round. Last year, DoorDash raised a $250 million round of financing that valued the company […]

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Asian food delivery startup Chowbus raises $4M

When one food delivery startup fails, another gets funded. Chowbus, an Asian food ordering platform headquartered in Chicago, has brought in a $4 million “seed” funding led by Greycroft Partners and FJ Labs, with participation from Hyde Park Angels and Fika Ventures. The startup, aware of the challenges that plague startups in this space, says offering exclusive access to restaurants and eliminating service fees sets it apart from big-name competitors like Uber Eats, Grubhub, DoorDash and Postmates. The Chowbus platform focuses on meals rather than restaurants. While scrolling through the mobile app, a user is […]

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DoorDash poaches Uber Eats engineering boss

One way to gain ground on a competitor is to poach their best executives. We’ve seen it time and time again, from high-level Tesla employees fleeing for Lyft or Apple stealing Google’s AI talent. DoorDash, a well-funded food delivery unicorn, is familiar with this method of staffing. The company announced this morning that it has poached its second Uber employee in the last year to join its growing business. Ryan Sokol, credited with leading and scaling Uber Eats, Uber’s food delivery arm, from its inception, has joined DoorDash as […]

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Postmates lines up another $100M ahead of IPO

Postmates, one of the earlier entrants to the billion-dollar food delivery wars, has raised an additional $100 million in equity funding at a $1.85 billion valuation, as first reported by Recode and confirmed to TechCrunch by Postmates. The round comes four months after the eight-year-old startup drove home a $300 million investment that finally knocked it into “unicorn” territory. New investor BlackRock has joined the funding round alongside Tiger Global, which served as the lead investor of Postmates’ September financing. Led by co-founder and chief executive officer Bastian […]

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Brex has partnered with WeWork, AWS and more for its new rewards program

Brex, the corporate card built for startups, unveiled its new rewards program today. The billion-dollar company, which announced its $125 million Series C three weeks ago, has partnered with Amazon Web Services, WeWork, Instacart, Google Ads, SendGrid, Salesforce Essentials, Twilio, Zendesk, Caviar, HubSpot, Orrick, Snap, Clerky and DoorDash to give entrepreneurs the ability to accrue and spend points on services and products they use regularly. Brex is lead by a pair of 22-year-old serial entrepreneurs who are well aware of the costs associated with building a startup. […]

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