doordash

Food delivery app DoorDash is setting its sights on a new destination to test out flying drone deliveries: San Francisco.

The tech company leased a warehouse in the Mission District last month that will serve as a research and development space to advance its autonomous delivery technology, a June letter sent to San Francisco Zoning Administrator Corey Teague shows.

“This project reflects a broader commitment to reinvesting in San Francisco’s innovation economy and creating pathways for local employment in emerging technologies,” the letter said.

The 34,325-square-foot building at 1960 Folsom St. is roughly two miles away from DoorDash’s headquarters. About 200 people are expected to be employed at the site.

DoorDash confirmed on Wednesday that the company will use the facility to test autonomous delivery technology and support research and development for its robotics and automation arm. The company didn’t immediately answer questions about whether California residents will soon be able to get food delivery via a drone.

The San Francisco Chronicle first reported on DoorDash’s drone delivery plans.

Most of the testing would happen inside the warehouse but some of it will also occur outdoors during normal business hours in a gated area. The property includes a big outdoor area with surface parking, the letter said.

DoorDash has been piloting drone deliveries in other states including Texas, Virginia and North Carolina as well as Australia. DoorDash has partnered with aviation companies Wing, a subsidiary of Google’s parent company Alphabet, and Flytrek, an Israeli drone delivery company.

Drone delivery companies have also teamed up with other businesses, including Amazon and Walmart.

The expansion of drone delivery highlights how automation and robotics, powered by artificial intelligence, could reshape the future of work. Companies have been experimenting with drone delivery as a way to get food to customers’ doorsteps within minutes.

DoorDash and Flytrek launched drone delivery in Dallas-Fort Worth, Texas, in June. The drones delivered from restaurants such as Papa Johns and The Brass Tap and could carry up to 6.6 pounds, according to a news release about the partnership.

In the letter sent to Teague, a San Francisco attorney writes she’s reaching out on behalf of a “leading technology company focused on last-mile delivery solutions” to confirm their client is permitted to use the site as “research and development (R&D) space for autonomous delivery technologies.”

Even though the attorney doesn’t name DoorDash in the letter, the building’s lease has been linked to the company.

“The test flights outdoors are anticipated to be up to approximately 150 feet above ground. No more than two drones would be operated at the same time, and no individual flight would exceed 30 minutes in duration,” the letter said.

DoorDash has also been expanding other types of delivery, including a partnership with Coco Robotics in which boxy robots with wheels deliver food throughout Los Angeles and Chicago.

While San Francisco is a leading hub for technology and innovation, city officials have also encountered safety concerns from residents concerned about running into robots as they take up space on sidewalks. In 2017, the San Francisco Board of Supervisors voted to restrict delivery robots.

Meanwhile, the U.S. Department of Transportation in August proposed a new rule that would make it easier for companies to fly drones over longer distances. A DoorDash spokesperson said the company is encouraged by the steps taken “towards making drone delivery a scalable, safe, and reliable option for more communities across the country.”

As of December 2024, roughly 42 million people used DoorDash monthly, according to the company’s full-year financial results.

US federal prosecutors say defendant and co-conspirators got the company to pay for deliveries that never occurred.

A former food delivery driver pleaded guilty to conspiring to steal more than $2.5m from the food delivery service DoorDash.

Sayee Chaitanya Reddy Devagiri pleaded guilty on Tuesday in a federal court in San Jose, California, to a single count of conspiracy to commit wire fraud, the US Attorney’s Office said.

Devagiri and his co-conspirators would get the company to pay for deliveries that never occurred, federal prosecutors said.

Devagiri, 30, of Newport Beach, California, admitted to working with three others in 2020 and 2021 to defraud the San Francisco-based delivery company, federal prosecutors said. The other three were indicted by a federal grand jury in August.

Prosecutors said Devagiri used customer accounts to place high-value orders and then used an employee’s credentials to gain access to DoorDash software and manually reassign the orders to driver accounts that he and others controlled. He then caused the fraudulent driver accounts to report that the orders had been delivered when they had not and manipulated DoorDash’s computer systems to pay the fraudulent driver accounts for the nonexistent deliveries, officials said.

Devagiri would then use DoorDash software to change the orders from “delivered” status to “in process” status and manually reassign the orders to driver accounts he and others controlled, beginning the process again, prosecutors said.

Devagiri is the third defendant to plead guilty to having a role in this conspiracy. Two co-defendants previously entered pleas to one count of conspiracy to commit wire fraud, authorities said.

Manaswi Mandadapu pleaded guilty this month, and Tyler Thomas Bottenhorn pleaded guilty in November 2023. Bottenhorn was charged separately.

Devagiri faces a maximum sentence of 20 years in prison and a fine of $250,000. He is scheduled to return to court on September 16.