How DoorDash Work – Revenue & Business Model
Do you know what people do when they want their favorite meal? The simple go-to food delivery app and order their portion of food.
With food apps, people can easily search their restaurant and place their food orders with few clicks.
According to Forbes, the demand for an on-demand food delivery app is increase by 20% each year and it makes a $365 billion revenue in 2030.
Due to this segment, all the restaurant and business owners want to start their own on-demand food delivery app.
DoorDash is one of the best food delivery app and has become well-known in the USA, and it’s grown year by year to deliver the best food delivery services.
If you are planning to enter into a food delivery business and wondering how the DoorDash app makes money this article will help you.
So let’s know more about DoorDash and its business and revenue model.
What is DoorDash?
DoorDash is an American on-demand food delivery service that is founded by Stanford students Tony Xu, Andy Fang, Evan Moore, and Stanley Tang in 2013.
The business model of DoorDash is designed to benefits users as well as restaurants.
DoorDash Stats and Facts:
Founders: Andy Fang, Stanley Tang, Tony Xu, Evan Moore
Launched In: 2013
Headquarters: San Francisco, California, United States
Valuation: More Than $10 Billion
Funding: $2 Billion
DoorDash Success Funding Timelines
How Does DoorDash Works?
Choose order: Users can choose a restaurant to buy their portion of food with a few clicks as a variety of the menu listed on DoorDash.
Payment: After choosing the meal they can transactions after placing the order. Once the order receives by the DoorDash it forward to the restaurant.
Track order: The delivery person picks up the food order from the respected restaurant. Users can track the order within the DoorDash.
Delivery: The dashers try to make shorten the delivery period as much as is practical.
DoorDash Business Model:
DooeDash business model has a successful business model for the restaurant and has satisfied the demand of end-users.
Revenue Generation Model – How DoorDash Makes Money?
If you are willing to enter into On-Demand logistics or food delivery startup, you have to understand the model of revenue generation.
Commission on each order
DoorDash serves by delivering from the restaurant to the doorstep of customers who place food orders online through DoorDash. So, DoorDash charges the commission of each order.
Restaurant Advertising on DoorDash platform
DoorDash also charges restaurants for their marketing and advertising on their App. To be in the top restaurant gave an advertising commission.
DoorDash hires its own drivers, who are called Dashers. The delivery rates it’s dependent up to the distance and it charges delivery feed and makes revenue.