Here is my final project for my product management course. I chose the company Doordash, a third-party food order and delivery platform because of its relevancy during COVID-19. Although this industry has been one of the fastest growing industry, I find the current business and growth model for the aggregation platforms not sustainable. "Cloud" kitchen will be a big segment, but due to the low entry and exit barriers, the competition in that space will be fierce too shortly. To achieve optimization of profitability, restaurants operators will seek for other options unless the third-party food order and delivery platforms truly align their business goals with those of the restaurants.
4. PRODUCTMISSION
To empower local
businesses and
generate new
ways for people to
earn, work and
live.
CORE VALUE
To connect
people with
possibilities and
best in the cities,
and build stronger
communities.
GOAL
Continues to grow
Doordash
marketplace by
retraining existing
restaurant partners
and diners and adding
new restaurant
partners and diners.
An online
platform that
offers on-demand
food order and
delivery service.
DOORDASH
Mission, Core Value, Goal & Product
5. OWNED DIGITAL
TRENDING
Increasing number of
restaurant operators are
building their own digital
order and delivery solutions
PHONE ORDERS
Traditional way of phone
ordering directly from
restaurants remains the
primary competition
AGGREGATION
PLATFORMS
Grubhub
UberEats
Postmate
New comers
DOORDASH
Soaring Competition
Ordering directly from the restaurants remains the primary competition
6. "Fresh food sellers can’t afford to ignore the consumer
demand, even though most orders lose money"
Wall Street Journal
8. Why is this an important issue
for Doordash to solve ???
9. DOORDASH
Growth Model - Flywheel
Restaurant acquisition and retention impact diners' activation and retention
10. R
R
T A
ONLINE
DINER
Life Time Value
M
C
DOORDASH
Restaurant activation and retention impact Doordash revenues
#= X X
X
X
X
Avg. Value
per Order
Total No.
of Orders
Per Day
Retention
Time
Period
Retention
Time
Period
Profit
Margin
Commission
Rate
RESTAURANT
Avg. Daily
Online order
Revenues
DOORDASH
Total Order
Revenues
11. Restaurant
Owner
JOBS
PAINS
Grow net income
Open another location
No contact with platform diners
Extra headaches such as additional
staffing, training, over stressed kitchen
during peak hours, packaging cost etc.
Low margin from platform orders
Less control over platform diner's
experiences
KEY PERSONA
Partner-Restaurant Owners
Kendo
45 yr-old
Fig's Owner
Dallas
GOALS
ALTERNATIVES
To provide dine-in customers
stellar dining experience
To deliver off-premise diners
the best quality food
Grow customer base
“ The joy is in cooking for others.”
Seeks other solutions for online order
and delivery, such as his own order app
Deactivates Doordash platform during
peak hours
Encourages diners to order directly
Marks up menu prices on the platforms
14. ONLINE DINER INSIGHTS
Survey Result - Why Chose One Platform Over Another
CONSISTENT
PRICE
Discounts, markups & fees
RELIABLE
SERVICE
Food & delivery as expected
SELECTION OF
RESTAURANTS/
MENUS
Quality food choices
15. ONLINE DINER INSIGHTS
When asked, given the option, if they’d prefer to order from restaurants directly
80 % Online diners in my survey prefer to
order directly from local restaurants
More money to local businesses
Restaurants care more about their satisfaction
*Note: 70% of consumers prefer to order direct from restaurants, not third-party services, according to 2018 Hospitality Tech report
16. RESTAURANT CONCERNS
For Partnering With Third-Party Food Order-Delivery Platforms
No access to
platform
diner's info
Commission
fees
20%-35%
Fear of losing
control
over platform
diner's
experience
17. DEACTIVATES THIRD-PARTY DELIVERY
PLATFORMS DURING PEAK HOURS
“Kitchens were being flooded with third party orders
during peak times, which have lower profit-margin due
to the 30% third-party fee. Dine-in or 100% tickets were
getting more difficult to manage, and that wasn’t
making sense for the business.”
"CULL THE HERD" OF DELIVERY
TABLETS
"Since costs have risen along with sales, I do
not see a profit boost from the deliveries, just
better publicity.”
OWN ORDER APP AND DELIVERY
"When 60% or more orders are from third-party App
during COVID-19, the commission fee really hurts profit
margin. It will be better off building my own app, having
access to diner's info and more control over diner's
experience."
USER STORIES
Restaurants Driven By Profitablitbity
CALL ON DINERS FOR SUPPORT
"I encourage diners to order from our restaurant
directly to support local businesses."
18. DREAMING DOORDASH
maintains current
profit margin
Doordash
subsidizes
RESTAURANTS
maintain current
profit margin
Restaurants
take less
ONLINE DINERS
not pay extra
Online diners
pay more
DILEMMA
Long-term Economic Equations Not Add Up
19. STRENGTHS
Advanced platforms and tech resource
Over 340,000 restaurant partners
Around 30 MM active users
Aggregated big Data
Strong finance backed by VC's
WEAKNESSES
Limited control over online diner's experiences
and satisfaction
Gaps in the product range offered by Doordash
Has not made profits
OPPORTUNITIES
Soaring demands and changing behaviors
during COVID-19
Enhanced brand image by cutting restaurant
partner's commissions during COVID-19
More demands for quality selection of food on
the platform than supplies
New techonology advantages
THREATS
More restaurant-partners are building their own
independent food order and delivery solutions
Diner's preference to order directly from local
restaurants
Unforeseeable government regulations
Public pushback on fees
Increasing labor cost & movement
Low entry and exit barriers challenge retention
Unforeseeable actions from other third-party platforms
S W
O T
DOORDASH
SWOT Analysis
21. PROPOSED SOLUTOINS
Similar to online stores. The low cost tech driven delivery-only “Cloud" Kitchens are catered only to
online diners. Doordash can take advantage of its aggregated data to help curate desirable menu
selections. The cloud kitchen requires much less space and can be setup and expanded to multiple
locations fast. COVID-19 has prepped for it.
"CLOUD" KITCHEN
Doordash helps build and host restaurant's own-branded order APP. Partner APP offers restaurants
their own branded order apps integrated with their POS sys and Doordash Merchant Control Portal.
The restaurant own-branded app will give restaurant-partners the ability to communicate with online
diners at a flat fee with multi-tier commission rates and add-on services.
PARTNER APP- A RESTAURANT OWN ORDER APP + OPTIONAL SERVICES
A video / audio channel where restaurant operators/dashers can learn from Doordash data insights and
the best of industry practice on menu selections, staff training, space designs and more to adapt the
latest online diner's preferences.
DOORDASH UNIVERSITY
2
3
1
24. PRODUCT
Mockups
Doordash current merchant
portal and tablets are
integrated with restaurant
APP and POS sys, same
menu and prices across all.
Restaurant
POS
Order
APP
Restaurant
Branded
Order APP
Current Merchant
Control Portal
same menus,prices & offers
Server
25. Diner Direct Messaging
to Restaurant
No onion in my
order pls
No prob
Diner Name
dinera@diner.com
Order # 0000000
Order Item 1
Order Item 2
Restaurant Access to
Diner's Info
Restaurant's
Own Branded APP
PRODUCT
Mockups
Restaurant's Name
Restaurant's Photo
Restaurant's menu
Order Now
26. DD-
Source
?
Delivery
Agrmt
NO
YES
YES
YES
NO
NO
+=
option to
order from
R or DD
Subscription Fee
Agreed delivery
$$ paid to DD
Agreed delivery
& commission
$$$$ paid to DD
Agreed
commission
$$ paid to DD
Pickup /
Delivery
Need
delivery
?
$0
commissio
n charged
Need
delivery
?
$$
Agreed %
commissio
n charged
PRODUCT
How Does It Work
Online
Diner
Doordash
SERVER
Doordash
APP
Dynamic Commission
Delivery fee
Add-ons
Doordash
DELIVERY
PLTFM
$0 to Doordash
Restaurant
APP
Powered by
Doordash
OR
Doordash
REVENUE
28. Integrated
R-Branded APP
Direct
Communication
Subscription
Multi-tier
commission
Add-on
Services
VALUE PROPOSITION
Must-Have Features For Partner APP
A restaurant branded APP that is integrated with
its POS and KDS sys and controlled by the current
Doordash merchant control portal, and also
enables diners to order directly from restaurant
Ability to direct communicate with diners
Monthly / Annually flat subscription fee
Optional access to extra data, promotion
opportunities, Doordash delivery service, and in-
house delivery mgt tool.
Multi-tier commissions based on the source of
the orders, total No. and/or value of the orders
Partner
APP
30. Revenue
Competi
-tivness
Loyalty
Optimize
Resources
Recurring revenues and
multiple revenue streams
Differentiate itself and gain
competitive edges
More satisfied restaurant
parters and diners result in
higher retention rate
Amplify its current resources to
help restaurants with what matters
most to them, which in turn
improves online diner's
experiences
Collect diner's data whether
orders from restaurat own apps
or Doordash platform
More Data
Collection
PRODUCT
Benefits To Doordash
Sustainable
Growth
31. Tracking, followup
1
2
3
4 6
75
PRODUCT
Launch Plan
Work with Biz Dev,
release alpha version
to selected chain-
restaurant partners
Release beta version to
a larger group of
partners
Collect feedback &
necessary data
Make changes based on
the feedback and data,
and A/B testing
Work with mktg, biz dev on
press release, blog, social
media posts and email
blast, call partner and non-
partner restaurants
Release product to all
restaurants
32. PRODUCT
Pricing
$
/mo
+ $399 Setup Fee
Monthly Plan
PER STORE
249 $
/mo
+ $199 Setup Fee
Annual Plan
PER STORE
169
Multi-tier
10%, 12%, 15%
$ 6.95 + $ 1.2 0
For the 1st mile
Restaurants can also ask
diners to share delivery
fees
Per extra mile
Commission
Delivery
( )