DoorDash is a food delivery startup that connects customers with local restaurants. It uses a network of delivery drivers ("Dashers") who pick up and deliver food orders using the DoorDash platform and mobile app. DoorDash earns revenue through commissions from partner restaurants, delivery fees from customers, and advertising fees. The DoorDash business model aims to benefit all stakeholders - partner restaurants gain access to new customers, Dashers have flexible work, and customers can conveniently order delivery from local restaurants.

2. how doordash works
 DoorDash has been making a lot of news lately. Everyone’s
keen to learn how DoorDash works and what is their business
model. Before we analyses that, it’d be interesting to understand
the context.

3.  One of the names in the list that has also made it big is DoorDash; a company set
up by Stanford University students Andy Fang, Stanley Tang, Tony Xu and Evan
Moore in 2013. It is a delivery startup that currently delivers on-demand food from
partner restaurants but is modeling itself to be a generalized logistics startup in the
long run.
how doordash works

4.  What Is The Core Concept of DoorDash
how doordash works
When you don’t look close enough, you think of DoorDash as a delivery
company, perhaps a more extensive form of the delivery services your favourite
restaurant offers.

5. Headquartered in San Francisco, DoorDash was founded in February 2013. In
September 2013, Khosla Ventures, which belongs to Vinod Khosla, co-founder Sun
Microsystems, brought in USD 2.4m at the angel round funding.
 DoorDash Basic Facts
how doordash works

6. DoorDash Business Model Outline
The DoorDash business model smartly puts together the three stakeholders in
the food-delivery business, viz. Partner Restaurants, Drivers aka “Dashers” and
Users, and uses the fourth dimension – powerful technology – to optimize
experience and cash flow of the three stakeholders.
how doordash works

8.  Delivery Charges
 The shoppers are individuals receiving orders and then going to these stores and
purchasing those items on the customer's behalf. For shoppers, it is an additional
way to earn part-time revenue and work within a flexible working schedule.
how doordash works

9. how doordash works
 Commission from Partner Restaurants
Much like a credit-card companies, DoorDash receives a fixed commission for every
sale made through DoorDash. Depending upon various marketing arrangements, the
DoorDash commission is in the range of 20%. Factors like promotions, food festivals,
locations, ratings, the total business may influence this figure.

10.  Advertising Fees to Feature High on the App or Website
Restaurants, eateries, food joints, salad bars on DoorDash – whichever the
classification – need to get noticed. While partnering restaurants are listed
on DoorDash, many of them need to go a little extra mile to get seen.
how doordash works

11. How Everybody Wins With DoorDash
Now that you have much idea about how does DoorDash works, it’s time to see why
it’s growing. DoorDash might look like just another food-delivery startup; if that
were the case it wouldn’t have been able to win the confidence – and funding – of
firms like Sequoia Capital.
how doordash works

12.  Drivers, aka Dashers
It’s not just about assigning orders. Getting drivers who deliver consistently well in
all its 50+ markets in the US and Canada is not easy.
While the money Dashers make doesn’t exactly make them millionaires, there are
some benefits of that Dashers get out of working with DoorDash.
how doordash works

13.  Partner Restaurants
Food joints and restaurants partner with DoorDash for a variety of reasons. It
allows them to sell more food without changing their seating facilities. Whether
a restaurant has its delivery service or not, partnering with DoorDash gives them
access to markets they probably wouldn’t have access to.
how doordash works

14.  Final Thoughts
Co-founder Tony Xu shared some secrets during an interview. By consciously
limiting its growth for the first 18 months (DoorDash operated only in 3 markets
in this period), they figured out how they could be profitable in any market.
Once they learnt the lesson of turning profitable in a market, they grew from 3
markets to 24 in just one year.
how doordash works

15. Looking to develop DoorDash like app Get In Touch with us. Let’s
work together to create next DoorDash.
how doordash works

16. Infigic is a full service B2B and B2C focused Digital Agency serving clients
globally ranging from Small Businesses, Start-ups to Large Enterprises.
We are an all-round agency with tremendous experience in Ecommerce
Application Development, Mobile App Development, Web Application
Development & More.
About Infigic

17. CONTACT US
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sales@infigic.com
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