SoftBank has ploughed $535 million into DoorDash

A group of investors led by SoftBank has ploughed $535 million into food delivery service DoorDash in a bet that the San Francisco-based start-up will emerge a winner in a crowded market that has attracted the interest of some of the tech industry’s giants. The massive investment continues a series of SoftBank backed fundings that has given the Japanese investment group a leading role in many of the global venture capital industry’s biggest recent deals. However, while other large bets, such as those on Uber, Didi and WeWork, were made from the company’s Vision Fund, which draws heavily on financing from Saudi Arabia and others, the DoorDash investment was made directly by SoftBank itself. Including the fresh capital it is raising, the deal values DoorDash at about $1.4 billion… DoorDash delivers take-out food for restaurants in 600 cities in the US and Canada, and says nearly 90 of the top restaurant groups as customers… DoorDash has been in a race in the US against rivals including UberEats, Postmates and Caviar. The company also has its sights set on moving beyond handling deliveries for restaurants to service other merchants — an ambition that is likely to put it in competition with Amazon, which is also betting on establishing a “last mile” delivery network. The fundraising takes the total raised by the four-year-old start up to more than $700 million…
Richard Waters