What’s better than hotel room service from an on-site kitchen? How about in-room delivery from dozens of nearby restaurants? Delivery startup DoorDash today announced a partnership with Wyndham Hotels & Resorts that will see over 3,700 of the hospitality chain’s 9,200 properties offer guests access to DoorDash’s restaurant selection.
At select Super 8, La Quinta, Days Inn, and other Wyndham-branded locations, DoorDash customers will receive $5 off their first order and free delivery (before taxes and gratuity) when they check out with a promo code. Additionally, they’ll receive 250 points (plus 2,000 bonus points for their first order) toward their next stay through Wyndham’s guest loyalty program, Wyndham Rewards.
“We are thrilled to partner nationwide with Wyndham Hotels & Resorts, our first partner within the travel and hospitality segment,” said DoorDash head of corporate development Matt Rotella. “This partnership extends our continued commitment to meeting our customers wherever they are, allowing them to have the same access to great restaurants and fantastic service while traveling.”
San Francisco-based DoorDash, which was founded in 2013, has rapidly expanded its geographic and partner footprints to ward off competition from Postmates, Grubhub, UberEats, and others in the roughly $17 billion food delivery sector. DoorDash teamed up with 7-Eleven to ferry goods like shampoo and detergent to customers’ doorsteps, and it more recently launched alcohol delivery in U.S. states where that is legal.
In April 2018, DoorDash inked a deal with Walmart to handle same-day and scheduled deliveries for the retailer, starting with stores in Atlanta, and it integrated with TripAdvisor in November 2018. Earlier this year, the company collaborated with GM’s Cruise to pilot food and grocery delivery using driverless cars in San Francisco.
With its expansion into new markets in Alaska, Montana, South Dakota, North Dakota, West Virginia, and Wyoming in January, DoorDash became the first on-demand food delivery startup to operate in all 50 U.S. states. It now operates in over 4,000 cities (up from 3,300 at the beginning of this year and 600 a year ago) and includes delivery from over 310,000 stores, including 90% of the top 100 restaurants (among them Wendy’s, Chipotle, and the Cheesecake Factory) that offer delivery.
DoorDash says it’s seeing a 325% year-over-year uptick in sales and claims that it has overtaken UberEats in the online food delivery market in the U.S., coming in second to Grubhub. In interviews, CEO Tony Xu has attributed the growth in part to DoorDash Drive, which allows businesses to use DoorDash’s network of drivers to make their own deliveries, and DashPass, a $9.99-per-month subscription service that offers free deliveries on orders of $15 or more from a curated list of restaurants.
DoorDash announced in February that it had raised $400 million in a series F funding round led by Temasek and Dragoneer Investment Group, with participation from previous investors SoftBank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital, and Y Combinator. This values the company at $7.1 billion and puts its total raised north of $1 billion.