On-demand Food Delivery Apps are here to Stay – Mobile Apps like DoorDash Getting $600M Funding is the Proof

Launched in February 2013, as a logistic delivery platform, DoorDash is currently valued at whopping $12.6 billion. It is an online food delivery service that works on removing the barrier between the merchants and the customers.

It was started as a logistics delivery platform but for now, they are just focusing on food delivery. While emerging as the market leaders, they are presently developing at a very quick rate and have accomplished a number of milestones in the first quarter of 2019.

In February 2025, the organization announced it raised $800 million in Series F financing. Just three months later, it secured an impressive Series G funding round of $1.2 billion, marking a significant milestone in its growth trajectory.

Its new investors include Darsana Capital Partners and Sands Capital along with existing backers DST Global, Coatue Management, Sequoia Capital, Dragoneer, SoftBank Vision Fund, and Temasek Capital Management.

The company also reported that its business has developed over 60% earlier this year while it also continued its geographic expansion to more than 4,000 urban areas over the U.S. and Canada.

What Caused The Rise in DoorDash Valuation?

Coming just a week after London-based Deliveroo rose $575M, the news of Doordash getting the funding, demonstrates that investors’ appetite for on-demand delivery companies remains undiminished.

CEO of DoorDash credited the organization’s growth to three factors:

• Its geographic reach (3,300 urban communities in the United States and Canada)

• Its selection of partners (not just eateries — Walmart is also utilizing DoorDash for grocery deliveries)

• DoorDash Drive – which enables organizations to utilize the DoorDash network to make their own deliveries

He also included that DoorDash has been “developing in a disciplined manner, turning markets towards profitability.” Now, that we know what caused the rise in DoorDash valuation, let’s see what potentials the market holds for new and budding startups.

The Shape of On-demand Food Delivery Market Today

In recent years, online food delivery market has seen rapid development. Now, it has become crucial for every café or restaurant owner to own a mobile app.

Mobile apps enable customers to order food from a variety of restaurants with a solitary tap on their smartphones. With the advent of Smartphones, the consumers have the comfort and capacity to browse menus of a wide range of eateries, in turn growing the online food delivery market.

According to Mckinsey, the food delivery market in 2016 was at €83 billion, which is just 1% of the total food market and 4 percent of food sold through cafés and fast-food chains.

From 2016 to 2019, in spite of the fact that it has developed in numerous nations, there are still several demographics which are yet to open the entryway for this sector. This generates tremendous growth opportunities for new businesses in the on-demand ecosystem.

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Also Read: 5 Best On-Demand Mobile App Ideas To Execute In 2019

Since now you have seen how the on-demand food delivery market is one that has built up itself as a secure market, both of present time and of the future, let us now talk about how you can make a beeline to enter this flourishing market –

Want to Enter the On-demand Food-Delivery Market?

In on-demand ecosystem, food delivery app model has turned out to be one of the most eager verticals for capital, with investors pouring more than $20B into startups around the world, for example, Swiggy, Delivery Hero and Rappi.

There is no uncertainty that on-demand food delivery apps are currently a part of everybody’s life, or in other words, on-demand applications are catching a lot of market share. Each business is coming up with their own applications trying to set their place in the on-demand ecosystem.

If you are great with your business and idea execution, who knows that you may get the next million dollars funding simply like DoorDash!