DoorDash acquires smoothness and logistics startup Rickshaw

DoorDash is announcing a merger of Rickshaw, a Y Combinator-incubated startup that helps businesses offer same-day smoothness by fasten them to a bearer network and handling a logistics.

DoorDash has been building a identical height called Drive, that allows business to use DoorDash’s network to make deliveries over DoorDash’s consumer website and app.

Meanwhile, Rickshaw CEO Divya Bhat pronounced she’d built a essential business in Los Angeles and a San Francisco Bay Area with a “super small, scrappy team” of only 4 full-time people. However, as they looked during lifting a Series A and expanding, she pronounced it would meant “taking a large step behind and building a garland of general infrastructure.”

Since they already knew a DoorDash team, and given they saw a identical prophesy behind Drive, a merger looked flattering appealing.

“It was a unequivocally healthy fit,” Bhat said.

The financial terms of a merger were not disclosed, though 3 Rickshaw group members will be fasten DoorDash. In a blog post, DoorDash CEO Tony Xu described this as “an acquihire.”

“A lot of a expertise and program behind Rickshaw and what they’ve built positively will be practical really directly to a Drive product,” Xu told me. “At a same time, this is sincerely difficult … It’s not only a copy-and-paste” — so he pronounced there will be clever care to do things “the right way.”

The Rickshaw use will be shutting down, and Bhat pronounced her group will be articulate to existent business about anticipating another product to accommodate their needs. Depending on a customer, that product might or might not be DoorDash Drive — Bhat pronounced it’s “different adequate that it wouldn’t make a good full transition.”

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Posted by on Sep 15 2017. Filed under Startups. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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