food

1. DoorDash, Inc.
Type Public
Traded as NYSE: DASH (https://ww
w.nyse.com/quote/XNYS:
DASH) (Class A)
Russell 1000 component
Industry Online food ordering
Founded January 2013 in Palo
Alto, California
Founders Tony Xu
Andy Fang
Stanley Tang
Evan Moore
Headquarters San Francisco,
California, United States
Area served Australia
Canada
Germany
Japan
United States
Key people Tony Xu (CEO)
Andy Fang (CTO)
Christopher Payne
(president)
Brands Caviar
Chowbotics
Wolt
Services Food delivery
Revenue
US$4,888 milliona (2021)
Operating
income
–
US$452 milliona (2021)
Net income –
US$468 milliona (2021)
Total assets
US$6,809 milliona (2021)
DoorDash
DoorDash, Inc. is an American company that operates an
online food ordering and food delivery platform. It is based
in San Francisco, California, United States. With a 56%
market share, it is the largest food delivery company in the
United States.[2] It also has a 60% market share in the
convenience delivery category.[3] As of December 31, 2020,
the platform was used by 450,000 merchants, 20,000,000
consumers, and 1 million deliverers.[4]
DoorDash went public in December 2020 on NYSE and
trades under the symbol DASH.[5]
History
Markets
Acquisitions
Controversies, lawsuits, and criticism
Withholding of tips
Antitrust litigation
Data security
Driver strike and tip transparency
Lawsuit by the city of Chicago
2017 Class action lawsuit
Philanthropy
References
External links
In the fall of 2012, Stanford University students Tony Xu,
Stanley Tang, Andy Fang and Evan Moore (now a partner at
Khosla Ventures)[6] were getting feedback on a mobile app
for small business owners when a macaroon store owner told
them of her challenges meeting demand for deliveries.[7]
In January 2013, they launched PaloAltoDelivery.com in
Palo Alto, California.[8] In the summer of 2013, it received
$120,000 in seed money from Y Combinator in exchange
Contents
History
Coordinates: 37.7856°N 122.3958°W

2. Total equity
US$4,667 milliona (2021)
Number of
employees
6,000+ (2021)
Website doordash.com (https://do
ordash.com)
Footnotes / references
a Fiscal Year Ended December 31, 2021
[1]
for a 7% stake. It incorporated as DoorDash in June
2013.[9][10]
In October 2017, CFO Mike Dinsdale left DoorDash less
than a year after he started working for the company.[11]
In December 2018, DoorDash overtook Uber Eats to hold
the second position in total US food delivery sales, behind
GrubHub.[12] By March 2019, it had exceeded GrubHub in
total sales, at 27.6% of the on-demand delivery market.[13]
By early 2019, DoorDash was the largest food delivery
provider in the U.S., as measured by consumer spending.[14] It maintained that market position in 2019.[15]
In October 2019, DoorDash opened its first ghost kitchen, DoorDash Kitchen, in Redwood City,
California, with four restaurants operating at the location.[16]
By June 2020, DoorDash had raised more than $2.5 billion over several financing rounds from investors
including Y Combinator, Charles River Ventures, SV Angel, Khosla Ventures, Sequoia Capital, SoftBank
Group,[17] GIC,[18] and Kleiner Perkins.[19]
In April 2020, during the COVID-19 pandemic, DoorDash announced it had "stockpiled tens of thousands
of gloves and bottles of hand sanitizer" and was offering them to delivery drivers for free. The company
also said it had changed the default drop-off option to contactless delivery.[20] That month, DoorDash
became the fastest growing food delivery service.[21]
In October 2020, the company launched its "Reopen for Delivery" program to have brick-and-mortar
restaurants that have closed due to the COVID-19 pandemic partner with local ghost kitchen operators to
offer food delivery- and pick-up-only service.[22]
In November 2020, DoorDash announced the opening of its first physical restaurant location, partnering up
with Bay Area restaurant Burma Bites to offer delivery and pick-up orders.[23][24]
On December 9, 2020, the company became a public company via an initial public offering, raising $3.37
billion.[25][5][26] In the subsequent quarter share price has fallen to below 40% of the IPO value. Though
the stock price rose in 2021 (peaking at $245 per share), by 2022 it had dropped sharply, to around $95 per
share in Feb 2022.
In February 2021, 55% of DoorDash's drivers were women.[27]
DoorDash began expanding into international markets in 2015, launching in Toronto, Canada.[28] The
company started operating in markets outside North America in 2019, officially launching in Melbourne,
Australia, in September and later expanding further into the country.[29][30] In 2021, the company
expanded its service area again, launching services in Sendai, Japan in June[31] and Stuttgart, Germany in
November.[32]
The company expanded its service offerings in 2020, adding grocery delivery initially in California and the
Midwest in August 2020.[33] DoorDash expanded the service offerings in 2021 to include DoubleDash,
which allows for orders from multiple merchants, and alcohol delivery in 20 U.S. states, the District of
Columbia, Canada, and Australia.[34][35]
Markets

3. A Caviar delivery man during a blizzard in New
York City
Caviar – In October 2019, DoorDash acquired Caviar, a service specializing in food delivery
from upscale urban-area restaurants that typically do not offer delivery, from Square, Inc. for
$410 million.[36][37][38]
Scotty Labs – In August 2019, the company acquired Scotty Labs, a tele-operations startup
company that focuses on self-driving and remote-controlled vehicle technology.[39][40]
Chowbotics – On February 8, 2021, DoorDash announced its acquisition of Chowbotics, a
robotics company known for its salad-making robot.[41][42][43] The companies did not
disclose the terms of the deal, but Chowbotics was valued at $46 million in 2018.[44]
Wolt - On November 9, 2021, DoorDash announced its acquisition of Wolt for over $8.1
billion[45]
In July 2019, the company's tipping policy was
criticized by The New York Times, and later The Verge
and Vox and Gothamist.[46][47][48][49] Drivers receive
a guaranteed minimum per order, which is paid by
DoorDash by default. When a customer added a tip,
instead of going directly to the driver, it first went to
the company to cover the guaranteed minimum.
Drivers then only directly received the part of the tip
that exceeded the minimum. A DoorDash customer
filed a class action lawsuit against the company for its
"materially false and misleading" tipping policy.[49][50]
The case was referred to arbitration in August 2020.[51] Under pressure, the company revised its
policy.[52][53] The company settled a lawsuit with District of Columbia Attorney General Karl Racine for
$2.5 million, with funds going to deliverers, the government, and to charity.[54][55][56]
In April 2020, in the case of Davitashvili v. GrubHub Inc. DoorDash, Grubhub, Postmates, and Uber Eats
were accused of monopolistic power by only listing restaurants on their apps if the restaurant owners signed
contracts which include clauses that require prices be the same for dine-in customers as for customers
receiving delivery.[57][58][59][60] The plaintiffs stated that this arrangement increases the cost for dine-in
customers, as they are required to subsidize the cost of delivery; and that the apps charge “exorbitant” fees,
which range from 13% to 40% of revenue, while the average restaurant's profit ranges from 3% to 9% of
revenue.[57][58][59][60] The lawsuit seeks treble damages, including for overcharges, since April 14, 2016
for dine-in and delivery customers in the United States at restaurants using the defendants’ delivery
apps.[61][57][58][59][60] Although several preliminary documents in the case have now been filed, a trial
date has not yet been set.[62]
Acquisitions
Controversies, lawsuits, and criticism
Withholding of tips
Antitrust litigation
Data security

4. On May 4, 2019, DoorDash confirmed 4.9 million customers, delivery workers and merchants had
sensitive information stolen via a data breach. Those who joined the platform after April 5, 2018 were
unaffected by the breach.[63]
In July 2021, DoorDash drivers went on strike to protest lack of tip transparency and to ask for higher pay.
At the time of the strike, and as of March 2022, DoorDish did not allow drivers to see tip amounts prior to
accepting a delivery in the app. The strike occurred after DoorDash rewrote its code to cut off access to
Para, a third-party app that drivers had been using to see tip amounts.[64][65]
In August 2021, the city of Chicago sued DoorDash and GrubHub. According to Chicago mayor Lori
Lightfoot, the companies broke the law by using "unfair and deceptive tactics to take advantage of
restaurants and consumers who were struggling to stay afloat [during the COVID-19 pandemic]."[66]
DoorDash and GrubHub denied the suit's merits.[66]
In 2017, a class action lawsuit was filed against DoorDash for allegedly misclassifying delivery drivers in
California and Massachusetts as independent contractors. In 2022, a tentative settlement was reached in
which DoorDash would pay $100 million dollars total, with $61 million going to over 900,000 drivers,
paying out just over $130 per driver, and $28 million for the lawyers.[67][68] Gizmodo criticized the
settlement, noting that the $413 million that DoorDash CEO Tony Xu received the previous year was one
of the largest CEO compensation packages of all time.[68]
In 2018, DoorDash launched Project DASH, a partnership with local food security organizations to deliver
donations to those in need.[69] By August 2019, the program had expanded to 25 cities in the United States
and Canada and had delivered more than one million pounds of food.[70] As of September 2021, Project
DASH operated in more than 900 cities and had delivered more than 15 million meals.[71][72]
DoorDash partnered with the National Urban League in 2020 as part of its Main Street Strong program,
which included a pledge of $200 million over five years to support restaurants during the coronavirus
pandemic. The partnership with the NUL includes $12 million in funding to assist drivers of color in
building job skills and financial literacy.[73]
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Driver strike and tip transparency
Lawsuit by the city of Chicago
2017 Class action lawsuit
Philanthropy
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s://web.archive.org/web/20200420220308/https://www.mercurynews.com/2020/04/14/doord
ash-uber-eats-grubhub-and-postmates-make-restaurant-meals-cost-more-lawsuit/) from the
original on April 20, 2020. Retrieved May 19, 2020. "Each of the firms uses “monopoly
power” to prevent competition, limit consumer choice and force restaurants to agree to illegal
contracts that have “the purpose and effect of fixing prices,” the suit claimed. ... The four
companies give restaurants a “devil’s choice” that requires them to keep dine-in prices the
same as delivery prices if they want to be on the app-based delivery platforms, the suit
claimed. And restaurants must pay commissions to the delivery firms ranging from 13.5% to
40%, the suit alleged. ... Establishments are forced to “calibrate their prices to the more
costly meals served through the delivery apps,” the suit alleged."

9. 59. Stempel, Jonathon (April 13, 2020). "Grubhub, DoorDash, Postmates, Uber Eats are sued
over restaurant prices amid pandemic" (https://www.reuters.com/article/us-health-coronaviru
s-food-delivery-laws-idUSKCN21V2C1). Reuters. Archived (https://web.archive.org/web/202
00417021535/https://www.reuters.com/article/us-health-coronavirus-food-delivery-laws-idU
SKCN21V2C1) from the original on April 17, 2020. Retrieved May 19, 2020. "GrubHub,
DoorDash, Postmates and Uber Eats were sued on Monday for allegedly exploiting their
dominance in restaurant meal deliveries to impose fees that consumers ultimately bear
through higher menu prices, including during the coronavirus pandemic. In a proposed class
action filed in Manhattan federal court, three consumers said the defendants violated U.S.
antitrust law by requiring that restaurants charge delivery customers and dine-in customers
the same price, while imposing “exorbitant” fees of 10% to 40% of revenue to process
delivery orders. The consumers, all from New York, said this sticks restaurants with a “devil’s
choice” of charging everyone higher prices as a condition of using the defendants’ services."
60. Dolmetsch, Chris (April 13, 2020). "GrubHub, Doordash Accused in Suit of Pushing Prices
Higher" (https://www.bloomberg.com/news/articles/2020-04-13/grubhub-doordash-among-d
elivery-services-facing-antitrust-suit). Bloomberg News. Archived (https://web.archive.org/we
b/20200419120108/https://www.bloomberg.com/news/articles/2020-04-13/grubhub-doordas
h-among-delivery-services-facing-antitrust-suit) from the original on April 19, 2020.
Retrieved May 19, 2020. "The New York customers, who seek class-action status, say the
delivery services charge “exorbitant fees” that range from 13% to 40% of revenue, while the
average restaurant’s profit ranges from 3% to 9% of revenue, making delivery meals more
expensive for eateries. “Restaurants could offer consumers lower prices for direct sales,
because direct consumers are more profitable,” the plaintiffs said. “This is particularly true of
dine-in consumers, who purchase drinks and additional items, tip staff, and generate good
will.”"
61. Davitashvili v GrubHub Inc., Link from NPR article (https://assets.documentcloud.org/docum
ents/6890558/DAVITASHVILI-v-Grubhub-ET-AL.txt) (2020).
62. "Court Listener" (https://www.courtlistener.com/docket/17065112/davitashvili-v-grubhub-
inc/). July 28, 2020. Retrieved July 28, 2020.
63. Whittaker, Zack (September 26, 2019). "DoorDash confirms data breach affected 4.9 million
customers, workers and merchants" (https://techcrunch.com/2019/09/26/doordash-data-brea
ch/). TechCrunch.
64. " 'NO DASHER = NO DELIVERIES:' DoorDash Drivers Strike for Tip Transparency" (https://
www.vice.com/en/article/pkbvgz/no-dasher-no-deliveries-doordash-drivers-strike-for-tip-tran
sparency). www.vice.com. Retrieved March 22, 2022.
65. Fischels, Josie (July 31, 2021). "Why DoorDash Drivers Are On Strike" (https://www.npr.org/
2021/07/31/1023265561/why-doordash-drivers-are-on-strike). NPR. Retrieved March 22,
2022.
66. Robertson, Adi (August 27, 2021). "Chicago sues DoorDash and Grubhub for 'unfair and
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bhub-lawsuit-tipping-phone-order-fee-cap). The Verge. Retrieved March 22, 2022.
67. "DoorDash $100 Million Driver Settlement Tentatively Approved" (https://news.bloombergla
w.com/daily-labor-report/doordash-100-million-driver-settlement-tentatively-approved).
news.bloomberglaw.com. Retrieved March 22, 2022.
68. "DoorDash Settlement Would Pay a Paltry $130 to Workers Instead of Making Them
Employees" (https://gizmodo.com/doordash-settlement-would-pay-a-paltry-130-to-workers-1
847586519). Gizmodo. Retrieved March 22, 2022.
69. Rose, Lily (January 26, 2018). "DoorDash's new 'Project DASH' will deliver restaurant
leftovers to food banks" (https://www.latimes.com/food/sns-dailymeal-1868372-eat-doordash
s-new-project-dash-will-deliver-restaurant-leftovers-food-banks-20180126-story.html). Los
Angeles Times. Retrieved October 1, 2021.

10. Official website (https://doordash.com/)
Business data for DoorDash Inc.: Google Finance (https://www.google.com/finance?q=DAS
H) · Yahoo! Finance (https://finance.yahoo.com/q?s=DASH) · Bloomberg (https://www.bloom
berg.com/quote/DASH:US) · Reuters (https://www.reuters.com/finance/stocks/overview?sym
bol=DASH.N) · SEC filings (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany
&CIK=DASH)
Retrieved from "https://en.wikipedia.org/w/index.php?title=DoorDash&oldid=1079084895"
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70. Peters, Adele (August 14, 2019). "How hunger-fighting orgs have used DoorDash to help
save 1 million pounds of food from landfills" (https://www.fastcompany.com/90380781/how-h
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71. Cherry, Amy (September 30, 2021). "A milestone delivery: DoorDash, Food Bank of
Delaware team up to deliver food to those most in need" (https://www.wdel.com/news/a-mile
stone-delivery-doordash-food-bank-of-delaware-team-up-to-deliver-food-to-those/article_29
7b037a-2228-11ec-9f75-7b9f8eb3191c.html). WDEL (AM). Retrieved October 1, 2021.
72. Lane, Katie (September 16, 2021). "Nourishing Minds and Bodies: San Diego Students Now
Eligible for Free DoorDash Delivery" (https://www.nbcsandiego.com/news/business/ignite-s
an-diego/nourishing-minds-and-bodies-san-diego-students-now-eligible-for-free-doordash-d
elivery/2720854/). NBC 7 San Diego. Retrieved October 4, 2021.
73. Guszkowski, Joe (November 12, 2020). "DoorDash Extends Cold Weather Grants as Part of
$200M Pledge" (https://www.restaurantbusinessonline.com/technology/doordash-extends-c
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External links