DoorDash Business Model and How They Make Money

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How Does DoorDash Works?
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• DoorDash has been making a lot of news lately.
  Everyones keen to learn how DoorDash works and
  what is their business model. Before we analyses
  that, itd be interesting to understand the
  context.

how doordash works
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• 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
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• What Is The Core Concept of DoorDash

When you dont look close enough, you think of
DoorDash as a delivery company, perhaps a more
extensive form of the delivery services your
favourite restaurant offers.
how doordash works
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• DoorDash Basic Facts

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.
how doordash works
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• 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
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Doordash Revenue Model
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• 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
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• 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.

how doordash works
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• 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
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• How Everybody Wins With DoorDash
• Now that you have much idea about how does
  DoorDash works, its time to see why its
  growing. DoorDash might look like just another
  food-delivery startup if that were the case it
  wouldnt have been able to win the confidence
  and funding of firms like Sequoia Capital.

how doordash works
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• Drivers, aka Dashers
• Its 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 doesnt exactly make
  them millionaires, there are some benefits of
  that Dashers get out of working with DoorDash.

how doordash works
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• 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 wouldnt
have access to.
how doordash works
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• 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
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Looking to develop DoorDash like app Get In Touch
with us. Lets work together to create next
DoorDash.
how doordash works
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About Infigic
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.
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