DoorDash is getting a big boost in funding as demand for delivery services surges during the coronavirus pandemic
DoorDash said Thursday that it has raised $400 million in new financing led by Durable Capital Partners and Fidelity, valuing the company at nearly $16 billion. The company was valued at $12.6 billion when it raised $600 million in May 2019.The financing comes as the platform"has become ingrained in the lives of local communities as an essential service," said Henry Ellenbogen of Durable Capital Partners in a statement.
In May, the company earned 44% of meal delivery sales in the US, according to analytics firm Second Measure.Read MoreIt is unclear what the new financing might mean for DoorDash's plans to go public. The company announced in February that it had submitted confidential paperwork with the US Securities and Exchange Commission to go public. DoorDash's business is not without its fair share of question marks, though.
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