Food Delivery Market Is On Fire – DoorDash Receives Series G Funding Worth $600 Million
Food delivery market is on fire and money is the fuel. A startup launched out of graduate school dorm room, DoorDash recently got Series G funding of whooping $600 million.
DoorDash is an on-demand food delivery startup and Venture capitalists are now valuing the San Francisco-based company at $12.6 billion. New investors include Darsana Capital Partners and Sands Capital alongside existing backers Coatue Management, Dragoneer, DST Global, Sequoia Capital, the SoftBank Vision Fund and Temasek Capital Management.
CEO of DoorDash said in an interview “If you just run the math on DoorDash’s course and speed, we’re on track to be number one.” It is also said that DoorDash has taken over UberEats in U.S. market. DoorDash is currently spread over in more than 4,000 cities across U.S. and Canada, with hundreds of partners, including both restaurants and supermarkets.
According to Adroit Market Research, Online food delivery market stood at USD 34.31 billion in 2017 and is projected to reach USD 90.95 billion by 2023 and America is the second most favorite market to start an online food delivery service,
On-demand ecosystem is growing because they focus on providing the customers what they need at their most convenient place. From grocery shopping to food ordering and what not? You will find everything and anything being sold in this ecosystem. Supported by technology, on-demand market is growing every day because from small traders to big brands all are coming up with their online stores. Do you want to book your airplane ticket? Order food or grocery at home or are you planning to get a pest control at your place? I can bet, once you search it online you will have hundreds of options to order from.
Where is on-demand economy heading to?
I believe the on-demand economy is just acknowledging it’s growth and it’s here to stay for a long long time. Don’t believe that? Well, let me ask you a question. How many time do you order online in a week? twice? thrice? or maybe more. That’s why it is here to stay!
We are sitting in 2019 and there are hundreds of mobile app development companies providers which are catering to different business flow and use cases. According to Harvard Business Reports, the on-demand economy attracts 22.4 million consumers annually, who spend $57.6 billion on them.
And if we talk about vertical wise, maximum spent is done on, online marketplace like Amazon with $36 billion spent annually, followed by transportation and then comes food and grocery with $4.5 billion annual spent. Other on-demand services include home service, freelancer, health and beauty service.
How Mobile app development companies help young and budding start-ups?
Application development companies are the masters in giving best in class services with beyond expectations features in your applications. They get your business and your idea covered. All you have to do is share your vision with them and your dream of having an online store dream will be a reality. User experience is a priority for every online business from first touch point on any website till the moment they place an order and what brings back them to you is the experience.
App development companies are constantly doing research on market trends and spend tons of money on ideating and developing those features. So it’s like having an application which is nurtured by your application development company for a subscription plan based on your needs.
There is no doubt that food or grocery on-delivery is now a part of every household, or in other words, on-demand apps are capturing a lot! of market share. Every business is coming up with their own applications trying to mark their place in the on-demand ecosystem.
And if you are good with your business and idea execution who knows you also might get a million dollar funding!