SoftBank Considering Major Investment in DoorDash
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SoftBank Considering Major Investment in DoorDash

SoftBank Considering Major Investment in DoorDash

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.”

Kashish Ambekar
Kashish Ambekar
Kashish moved to the United Arab Emirates from London after he graduated from UEL with a Masters of Business Administration specializing in Finance. Money smelled good, although tipping in rubies was a fortune in Dubai, which he couldn’t afford, let alone implement. India happened naturally by birth and the ever developing market proved no bounds in almost every Industry. The art of writing came naturally to him, short stories to professional articles in lieu of being therapeutic once, to a full time content writer. Currently he freelances as a content writer and is extremely devoted as his thoughts have found a way to be penned for technology in support to TechFunnel.com.

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