On-demand Food Delivery Company, DoorDash has acquired Rickshaw, a Y Combinator-incubated startup that helps businesses offer same-day delivery by connecting them to a courier network and managing the logistics. The financial terms of the acquisition were not disclosed, but it is reported that three Rickshaw team members will be joining DoorDash.
DoorDash, Inc. was founded in 2013 and is based in San Francisco, California. The company provides on-demand restaurant food delivery service connecting customers with local businesses. The company was formerly known as Palo Alto Delivery and changed its name to DoorDash, Inc. in October 2014.
Founded in San Francisco in 2013 by MIT grads Divya Bhat and Gautam Jayaraman. Rickshaw is a same-day local delivery platform that makes it simple for businesses to provide fast, dependable, high-touch deliveries to their customers. We use smart algorithms and savvy mobile apps for dispatch, routing and tracking to ensure a high success rate and delighted customers.
On the development, Divya Bhat, CEO, Rickshaw, said:
I’d built a profitable business in Los Angeles and the San Francisco Bay Area with a super small, scrappy team of just four full-time people. However, as I looked at raising a Series A and expanding, it would mean taking a big step back and building a bunch of generic infrastructure.
On the acquisition, DoorDash CEO Tony Xu, said:
A lot of the know-how and software behind Rickshaw and what they’ve built certainly will be applied very directly to our Drive product. At the same time, this is fairly complicated … It’s not just a copy-and-paste — so he said there will be careful consideration to do things the right way.
Since they already knew the DoorDash team, and since they saw a similar vision behind Drive, the acquisition looked pretty appealing. She said that the companies were a natural fit.
DoorDash has been developing a similar platform called Drive, which allows customers to use DoorDash’s network to make deliveries beyond DoorDash’s consumer website and app.
The Rickshaw service will be shutting down, and the company will be talking to existing customers about finding another product to meet their needs. Depending on the customer, that product may or may not be DoorDash Drive. Bhat said it’s Drive is different enough that it wouldn’t make a great full transition.