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DoorDash co-founder and CEO Tony Xu, presumably preparing to take hold of a big pile of cash.
DoorDash co-founder and CEO Tony Xu, presumably preparing to take hold of a big pile of cash.
Steve Jennings/Getty Images

The food delivery market isn't oversaturated yet. DoorDash, one of the newest startups in the game, is planning a new round of funding and will tell investors the company is worth at least $1 billion, reports Bloomberg. This news arrives eight months after DoorDash raised $40 million from investors.

The company's sky-high valuation comes even though it has seen some negative headlines in recent weeks. In September, a lawsuit filed against DoorDash claimed "they misclassified their delivery drivers as independent contractors." The move was allegedly intentional to avoid giving workers benefits. Earlier this month, In-N-Out Burger filed a lawsuit against DoorDash for delivering its food without permission.

A spokesperson for the beloved West Coast burger chain told Eater, "DoorDash is using our food and trademarks in a way that implies we have some kind of partnership or agreement with them, when that is not the case." In-N-Out is no longer listed on DoorDash's website.

DoorDash, which launched two years ago, is available as an app on iOS and Android devices. Like so many other delivery services, it partners with restaurants and employs couriers to pick up meals and take them to hungry, lazy diners. The company delivers from restaurants in 15 metro areas across North America. When he announced service in Toronto, its first market outside the United States, last week, DoorDash head of expansion Ryan Broderick said it was the first step in his mission to "create a delivery network that expanded worldwide."

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