Doordash, one of the myriad home delivery services the current tech bubble has spawned, is abandoning its hopes of becoming a unicorn Bloomberg reports.
The company was seeking a valuation of a billion dollars from its latest fund raising round but in the face of disinterest from prospective investors the company has started lowering expectations.
Even at $600 million dollars that valuation seems rich and for existing shareholders offering more equity at the same valuation this is bad news as their stake is being diluted out.
For Doordash, the lack of investor interest is only one of their problems. Last year the company was sued by iconic Californian burger chain In ‘n Out for alleged trademark infringement and deceptive practices.
As market leader Instacart raises prices and looks to cut costs it seems the home delivery mania is coming to an end. Doordash could well be one of the wannabe unicorns that never quite made it.