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DoorDash Business & Revenue Model |
What people do nowadays when they want to enjoy their favorite dishes? They go to the restaurants to enjoy their favorite food or else they order their favorite food using an online food delivery app. There are many online food delivery apps are available.
As per a survey, on-demand food delivery services are increasing drastically with each passing year, it’s predicted to reach 365 billion $ by 2030, which is increasing by the rate of 20% annually.
There are many online food delivery apps are available, but DoorDash is one of the most successful business models. If someone thinks to enter food delivery business then he/she must know what is DoorDash? How DoorDash works? Which business model do they follow? How do they generate revenue? So, let’s discuss how they are achieving massive success.
What is DoorDash?
DoorDash is an on-demand online food delivery service, launched in 2013 in Palo Alto, USA. This is founded by Stanford students Tony Xu, Andy Fang, Evan Moore, and Stanley Tang. The company's head office is in San Francisco, USA.
DoorDash is the largest delivery service provider in the USA, Up to December 2019, it has generated total revenue of 900 million$.
The company was established in Paulo Alto. It has expanded in more than 4000 cities and 340,000 stores approx across the USA and Canada.
How DoorDash Works
DoorDash works in 4 steps
Choose order
When it comes to eating users have a lot of options to choose from a large collection of restaurants with a variety of menus. Users can see the top recommendations based on their previous orders. Users can choose from all the options available and can place their orders.
Payment
After placing the order user can pay for the order within the app. Charges are calculated based on the price of the dishes & delivery location. After the payment, the order gets forwarded to the respective restaurant.
Track order
The restaurant receives the order and prepares the food. When the order is ready at the restaurant, delivery personnel picks it up from the restaurant and go toward the delivery location. Delivery personnel can pick up orders whenever they have downtime, using the app.
Users can track the status of orders through the tracking feature available on the app. With this users can have an estimated time of the delivery.
Delivery
Delivery personnel’s goal is to deliver the order as soon as possible. The Payment of the delivery goes to the company, and then the company pays delivery personnel for their work. Delivery personnel usually get tips from users. Users can rate their experience with the delivery personnel, the delivery, and the order, using the app.
Business Model of DoorDash
DoorDash has a Y-structured business model. It includes the users, the restaurants, and the people who are willing to work as delivery personnel.
The delivery personnel associated with the DoorDash are known as Dashers.
Let's discuss the Y-structure business model of DoorDash.
The users:
People who love to try new dishes but don’t have time or the energy to go out to eat can enjoy food ordered from DoorDash.
The corporate offices that have no time to waste, can order with DoorDash without compromising their schedules.
Students who don’t have a kitchen in their apartments, People who don't know cooking and have to eat out can enjoy DoorDash service.
The restaurants:
Restaurants are an integral part of this business model.
DoorDash has a lot of attractions of Restaurants that don’t have home delivery services, DoorDash has an efficient transport network, and so, it is an asset for any food business.
With the popularity and wide range of DoorDash, restaurants can be benefited and reach new customers.
Restaurants that don’t have a proper sitting arrangement can enjoy the benefit of home delivery from Doordash.
Dashers (Delivery personnel):
People, who are looking for flexible jobs, are fit to work as Dashers.
https://applionsoft.com/online-food-or |
808 Days Ago |
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