DoorDash to Invest in Autonomous Vehicles

­We’re finally seeing the inexorable evolution of the food delivery sector –DoorDash announced plans to invest in Rivian spinoff ALSO, with similar partnerships on the way. Let’s face it – the only surprise is it took this long.

COVID-19 caused a sea change in consumer behavior – none more so than in the restaurant and food delivery markets. When local and state statutes prohibited dine-in service, a lot of restaurants faced closure, while others received a lifeline from the massive proliferation of app-based delivery services like Uber Eats and DoorDash. Even now, with the pandemic largely in the rear-view mirror, food delivery has remained an indispensable component of the food and beverage industry.

You can never go wrong by betting on consumer laziness (or to put it charitable, anything that makes daily life more convenient) – according to one market research source, food delivery is set to go from USD 38.0 Billion in 2024 to USD 105.8 Billion by 2033, at a CAGR of 11.57% for 2025-2033.

Industry response has been mixed – while food delivery apps undoubtedly saved a number of businesses, the services also cut into restaurant profits. Though, at this point, only restaurants with extremely loyal, installed customer bases can afford to ignore the delivery apps.

And like any industry that relies heavily on transportation, some degree of autonomy was probably inevitable.

At least at first, this partnership will focus on “last-mile delivery,” where autonomous robotics can prove most useful.

According to Chris Yu, co-founder and president of ALSO, "I couldn't be more excited to partner with the team at DoorDash to deploy autonomy in areas not yet fully solved for - at the intersection of roadways, bike lanes and road adjacent spaces. Small autonomous EVs are optimal in these environments and that is what ALSO is building from the ground up."

ALSO recently introduced its first two products, which could form the foundation of their partnership – flagship TM-B electric bike and TM-Q electric delivery quad. From here, the company could scale up production and expand into international markets.

"Last-mile delivery is a physical-world challenge and the details matter, from curb access to making sure an order arrives on time and intact," said DoorDash Co-Founder and Head of DoorDash Labs Stanley Tang. "ALSO is building purpose-built EVs that are designed to unlock new ways to meet customers and merchants where they are. We're excited to invest and partner with them as we look to scale autonomous delivery."