SoftBank is thinking about a $300 million (£222 million) investment in food delivery start-up DoorDash, as indicated by a recent Recode report. The investment would apparently originate from SoftBank’s $98 billion (£73 billion) “Vision Fund,” which was reported last October. The fund has been sponsored by organizations like Apple and Sharp, in addition to the Saudi Arabia sovereign wealth support.
While the DoorDash bargain has not yet closed and can still fall apart, sources stated that the total proposal to be about $300 million. The exact terms of the arrangement have not been released. The food delivery company was last valued at around $720 million in March 2016, as per PitchBook, which incorporates the $130 million it had raised. DoorDash and SoftBank declined to comment.
One thing that may compromise SoftBank’s deal with DoorDash is its competition with Uber’s food delivery franchise, UberEats. SoftBank has commenced a soft offer to acquire up to 20% of Uber. DoorDash additionally contends with firms like Deliveroo, Amazon Restaurants, GrubHub, and Postmates. One way the organization has attempted to separate its business is by branding together with national restaurant chains on delivery. SoftBank was additionally reported to be investing resources into London-headquartered food delivery service Deliveroo recently, however, the arrangement never started.
When SoftBank reported the Vision Fund, Masayoshi Son, the billionaire chairman and CEO of SoftBank, said in a memo:
“Technology has the potential to address the biggest challenges and risks facing humanity today. The businesses working to solve these problems will require patient long-term capital and visionary strategic investment partners with the resources to nurture their success. SoftBank has long made bold investments in transformative technologies and supported disruptive entrepreneurs. The SoftBank Vision Fund is consistent with this strategy and will help build and grow businesses creating the foundational platforms of the next stage of the Information Revolution.”