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Four Stanford students were given the task to create a business model as part of their classes at the university. Tony Xu (“Xu”), Evan Moore, Andy Fang (“Fang”), and Stanley Tang created Palo Alto Delivery which had 8 different restaurant menus on the website. People could order by phone and pay a premium for them to deliver the food.  Their main focus was to create something that would help local restaurants. They went around asking close restaurants what their problems were and they came up with this as a solution. Each of the four founders worked as delivery drives for several other companies in order to understand all of the logistical work behind delivery.
Factors of production: Entrepreneurship

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Finding mild success, they entered the Y-Combinator Incubator program and won $20,000 in funds along with recognition from the program.
Factors of production: Capital

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After winning the Y-Combinator incubator, the team changed their name from Palo Alto Delivery to DoorDash. Using the funds from the program they were able to purchase the domain name for their company along with an app platform to continue to conduct orders on.
Factors of production: Land and capital

https://www.cleverism.com/company/doordash/#:~:text=History%20DoorDash%20was%20founded%20in%202013%20by%20Stanford,businesses%20that%20have%20effectively%20created%20the%20sharing%20economy.

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DoorDash provides an online food and consumer goods delivery platform, with a view to providing consumers with easier access to their favourite restaurants, and assisting food service businesses in reaching a greater number of customers.

DoorDash was founded in 2013 by Stanford University students Tony Xu ("Xu"), Evan Moore, Andy Fang ("Fang"), and Stanley Tang. DoorDash was created with the intention of building an effective on-demand delivery infrastructure for local cities, utilising lessons from businesses that have effectively created the sharing economy. The Company was built around the concept of helping small retailers reach a broader base of consumers.

Before launching the Company officially, the DoorDash team created a prototype website that included a choice of eight local restaurants, whose menus they uploaded in PDF format. Orders were placed via a Google Voice phone number shared by the founders, who would make the deliveries personally. They called their business Palo Alto Delivery. The founders continued to make deliveries for around six months, as well as taking on part-time delivery jobs for companies such as Domino's Pizza and FedEx to learn more about the concept.

The DoorDash team later joined the Y-Combinator incubator program, where they changed the Company's name to DoorDash. While they continued to develop their service, including the creation of a mobile app, the Company began attracting investor attention, completing its first round of investors funding in 2014. To date, DoorDash has raised more than $186 million in five rounds of funding, including investments from Khosla Ventures, Sequoia Capital, and Ooga Labs.

DoorDash has expanded significantly, offering services across 15 metropolitan areas in the US, including major cities such as New York, Chicago, Los Angeles, and Boston. The Company has also started delivering other non-food items form partners like 7eleven. Recent reports suggest that the Company is valued at around $700 million.

Business model of DoorDash

Customer Segments

DoorDash provides a food delivery service to the general consumer market. It targets the same demographics as many other similar online food ordering service providers, typically marketing its platform to customers that do not have the time, capacity or inclination to cook for themselves.

This largely comprises, relatively tech savvy young professionals and young families with working parents who have less time to prepare and shop for food, but have a reasonable amount of disposable income that can be spent on eating restaurant-quality food. Recent reports suggest that the largest demographic for online food ordering services are technologically engaged consumers aged between 30 and 49.

DoorDash manages to differentiate its food ordering service from traditional takeaway companies by providing delivery for restaurants and food outlets that do not have their own delivery services. This generally opens the platform to a higher quality of participating restaurants, which attracts a more affluent clientele. DoorDash also delivers large orders for catered events, groups, and parties.

DoorDash currently serves only customers in the US. Its service regions are categorised as follows: Northern California, Southern California, Seattle, Minneapolis, and Other Cities, including Dallas, New York, Houston, Chicago, and Atlanta, among others.

Value Propositions

DoorDash provides value to its customers in the following ways:

Its broad network of participating restaurants, with the Company cooperating with numerous restaurants across the US, providing consumers with access to a broad range of international cuisines, including Japanese, Chinese, Mexican, and American;

Its domestic service reach, with the Company's network of participating restaurants spanning 15 metropolitan areas in the US, including major cities such as New York, Washington DC, Atlanta, San Francisco, and Los Angeles;

Its accessibility and flexibility, with the Company operating a simple online ordering portal that is accessible through desktop and mobile browsers, as well as through mobile apps for iOS and Android systems, allowing customers to place orders from anywhere; and

Its efficient delivery and logistics systems, with the Company utilising proprietary logistics technology to deliver orders to customers in 45 minutes or less.

Channels

DoorDash operates a website at www.doordash.com, through which it provides information on its activities, services areas, and delivery processes. The Company website also serves as its online ordering portal, which allows customers to search participating restaurants and food outlets in their area, browse menus, place orders, and complete transactions. The Company also provides mobile applications for iOS and Android platforms, that allow customers to place orders while on the move. The Company also operates a separate catering portal for deliveries for large teams and groups at www.doordash.com/for-business.

DoorDash makes deliveries through its team of 'dashers', a group of independent delivery contractors who are able to sign up for shifts in a desired location. These 'dashers' are able to make deliveries by car, motorcycle, bike, and, in some locations, on foot, and are remunerated by the hour and are permitted to keep all tips. Anyone is able to sign up as a 'dash through the Company's website.

Customer Relationships

DoorDash operates a self-service online portal, through which customers are able to browse restaurants and menus, place orders, and organise and pay for deliveries without interacting with any members of the DoorDash personnel, or with employees of the restaurant. Customers can also access the same functionality through its mobile apps, browsing menus and placing orders independently.

DoorDash provides a range of online support resources to its customers, including FAQs, guides to service areas, delivery assistance, and other advice. Customers are also able to access personalised delivery assistance through the Company's online portal, or can contact the Company over the phone.

DoorDash maintain a social media presence - including accounts with Instagram, Facebook, and Twitter - through which it is able to interact directly with customers, and keep customers updated with company developments. The Company additionally contacts its customers by email with deals, discounts, and offers for their area.

Key Activities

DoorDash is an online food delivery service provider. The Company operates an online food ordering portal, through which customers across 15 metropolitan areas of the US are able to browse menus of restaurants in their area, place orders, and arrange deliveries on a self-service basis. The Company's network of participating restaurants includes a broad range of international cuisines, and includes restaurants that have not previously operated a delivery service.

DoorDash utilises proprietary logistics technology to ensure that its orders are completed quickly and efficiently, with the aim of making deliveries in 45 minutes or less from the time of ordering. The Company's deliveries are made by a team of independent delivery contractors named 'dashers', who deliver orders by car, motorcycle, and on foot.

Key Partners

DoorDash works closely with a network of partners to provide an efficient and reliable service to its customers. These partners include:

Restaurant and Merchant Partners, principally comprising a broad network of participating restaurants and food outlets - including fast food franchises, independent restaurants, and foodservice chains - as well as various non-food retailers, including consumer goods retailers;

Affiliate and Marketing Partners, comprising a range of website and businesses that assist in marketing the Company's services, and driving traffic to the Company's online delivery portal;

Supplier and Service Partners, comprising suppliers of tools, technologies, and services that are utilised across the Company's enterprise, as well as companies to which certain functions can be outsourced.

DoorDash partners with a range of well-known food outlets, including Dunkin' Donuts, Taco Bell, Hardee's and Carl's Jr. The Company also recently launched its first non-restaurant delivery deal with 7eleven to deliver a range of products to customers. The Company has also partnered with tech retailer B8ta to deliver other consumer goods and products.

Key Resources

DoorDash's key resources are its online platform, its IT and communications infrastructure, its sales and delivery infrastructure - including its team of independent delivery personnel, its partnerships - in particular its network of participating restaurants and retailers, and its personnel.

Cost Structure

DoorDash incurs costs in relation to the development and maintenance of its online platform, the maintenance of its IT and communications infrastructure, the operation of its sales and delivery infrastructure, the management of its partnerships, the and the retention of its personnel - including remuneration for its 'dasher' delivery team.

Revenue Streams

DoorDash generates revenue through the operation of an online food ordering service, operating as an intermediary between food outlets and the general consumer market. The Company derives revenue from two principal streams:

Commission fees, including revenue derived from the collection of percentage-based commissions on all sales made through the Company's online delivery platform; and

Marketing programs, comprising marketing and branding service for restaurants to promote their listings.

DoorDash remains a privately-owned entity, and as such it is not obliged to publish its financial results on its website. Research did not identify any reference to the Company's revenue figures, however, reports suggest that the Company is experiencing growth.

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DoorDash provides an online food and consumer goods delivery platform, with a view to providing consumers with easier access to their favourite restaurants, and assisting food service businesses in reaching a greater number of customers. DoorDash was founded in 2013 by Stanford University students Tony Xu ("Xu"), Evan Moore, Andy Fang ("Fang"), and Stanley Tang.

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In 2014, DoorDash completed its first round of funding from investors. The company was able to secure 2.4 million dollars in capital that was invested back into the company.
Factor of production: Capital

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In 2015 DoorDash expanded its reach across borders moving into Canada
Factors of production: Land

https://en.wikipedia.org/wiki/DoorDash#:~:text=DoorDash%20began%20expanding%20into%20international%20markets%20in%202015%2C,September%20and%20later%20expanding%20further%20into%20the%20country.

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DoorDash, Inc. is an American company that operates an online food ordering and food delivery platform. It is based in San Francisco, California, United States. With a 56% market share, it is the largest food delivery company in the United States. It also has a 60% market share in the convenience delivery category. As of December 31, 2020, the platform was used by 450,000 merchants, 20,000,000 consumers, and 1 million deliverers.

DoorDash went public in December 2020 on NYSE and trades under the symbol DASH.

In the fall of 2012, Stanford University students Tony Xu, Stanley Tang, Andy Fang and Evan Moore (now a partner at Khosla Ventures) were getting feedback on a mobile app for small business owners when a macaroon store owner asked for help using technology for deliveries.[citation needed ]

In January 2013, they launched PaloAltoDelivery.com in Palo Alto, California.[citation needed ] Early customers were mostly students at Stanford University.[citation needed ] In the summer of 2013, it received $120,000 in seed money from Y Combinator in exchange for a 7% stake. It incorporated as DoorDash in June 2013.

In October 2017, CFO Mike Dinsdale left DoorDash less than a year after he started working for the company.

In December 2018, DoorDash overtook Uber Eats to hold the second position in total US food delivery sales, behind GrubHub. By March 2019, it had exceeded GrubHub in total sales, at 27.6% of the on-demand delivery market. By early 2019, DoorDash was the largest food delivery provider in the U.S., as measured by consumer spending. It maintained that market position in 2019.

In October 2019, DoorDash opened its first ghost kitchen, DoorDash Kitchen, in Redwood City, California, with four restaurants operating at the location.

By June 2020, DoorDash had raised more than $2.5 billion over several financing rounds from investors including Y Combinator, Charles River Ventures, SV Angel, Khosla Ventures, Sequoia Capital, SoftBank Group, GIC, and Kleiner Perkins.

In April 2020, during the COVID-19 pandemic, DoorDash announced it had "stockpiled tens of thousands of gloves and bottles of hand sanitizer" and was offering them to delivery drivers for free. The company also said it had changed the default drop-off option to contactless delivery. That month, DoorDash became the fastest growing food delivery service.

In October 2020, the company launched its "Reopen for Delivery" program to have brick-and-mortar restaurants that have closed due to the COVID-19 pandemic partner with local ghost kitchen operators to offer food delivery- and pick-up-only service.

In November 2020, DoorDash announced the opening of its first physical restaurant location, partnering up with Bay Area restaurant Burma Bites to offer delivery and pick-up orders.

On December 9, 2020, the company became a public company via an initial public offering, raising $3.37 billion.. In the subsequent quarter share price has fallen to below 40% of the IPO value. Though the stock price rose in 2021 (peaking at $245 per share), by 2022 it had dropped sharply, to around $95 per share in Feb 2022.

DoorDash began expanding into international markets in 2015, launching in Toronto, Canada. The company started operating in markets outside North America in 2019, officially launching in Melbourne, Australia, in September and later expanding further into the country. In June 2021, the company expanded its market presence again, launching services in Sendai, Japan.

The company expanded its service offerings in 2020, adding grocery delivery initially in California and the Midwest in August 2020. DoorDash expanded the service offerings in 2021 to include DoubleDash, which allows for orders from multiple merchants, and alcohol delivery in 20 U.S. states, the District of Columbia, Canada, and Australia.

Caviar - In October 2019, DoorDash acquired Caviar, a service specializing in food delivery from upscale urban-area restaurants that typically do not offer delivery, from Square, Inc. for $410 million.

Scotty Labs - In August 2019, the company acquired Scotty Labs, a tele-operations startup company that focuses on self-driving and remote-controlled vehicle technology.

Chowbotics - On February 8, 2021, DoorDash announced its acquisition of Chowbotics, a robotics company known for its salad-making robot. The companies did not disclose the terms of the deal, but Chowbotics was valued at $46 million in 2018.

- On November 9, 2021, DoorDash announced its acquisition of Wolt for over $8.1 billion

As of February 2021, 55% of DoorDash's drivers were women.

In 2018, DoorDash launched Project DASH, a partnership with local food security organizations to deliver donations to those in need. By August 2019, the program had expanded to 25 cities in the United States and Canada and had delivered more than one million pounds of food. As of September 2021, Project DASH operated in more than 900 cities and had delivered more than 15 million meals.

DoorDash partnered with the National Urban League in 2020 as part of its Main Street Strong program, which included a pledge of $200 million over five years to support restaurants during the coronavirus pandemic. The partnership with the NUL includes $12 million in funding to assist drivers of color in building job skills and financial literacy.

In July 2019, the company's tipping policy was criticized by The New York Times, and later and and . Drivers receive a guaranteed minimum per order, which is paid by DoorDash by default. When a customer added a tip, instead of going directly to the driver, it first went to the company to cover the guaranteed minimum. Drivers then only directly received the part of the tip that exceeded the minimum. A DoorDash customer filed a class action lawsuit against the company for its "materially false and misleading" tipping policy. The case was referred to arbitration in August 2020. Under pressure, the company revised its policy. The company settled a lawsuit with District of Columbia Attorney General Karl Racine for $2.5 million, with funds going to deliverers, the government, and to charity.

In April 2020, in the case of Davitashvili v. GrubHub Inc. DoorDash, Grubhub, Postmates, and Uber Eats were accused of monopolistic power by only listing restaurants on their apps if the restaurant owners signed contracts which include clauses that require prices be the same for dine-in customers as for customers receiving delivery. The plaintiffs stated that this arrangement increases the cost for dine-in customers, as they are required to subsidize the cost of delivery; and that the apps charge "exorbitant" fees, which range from 13% to 40% of revenue, while the average restaurant's profit ranges from 3% to 9% of revenue. The lawsuit seeks treble damages, including for overcharges, since April 14, 2016 for dine-in and delivery customers in the United States at restaurants using the defendants' delivery apps. Although several preliminary documents in the case have now been filed, a trial date has not yet been set.

On May 4, 2019, DoorDash confirmed 4.9 million customers, delivery workers and merchants had sensitive information stolen via a data breach. Those who joined the platform after April 5, 2018 were unaffected by the breach.

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DoorDash, Inc. is an American company that operates an online food ordering and food delivery platform. It is based in San Francisco, California, United States. With a 56% market share, it is the largest food delivery company in the United States. It also has a 60% market share in the convenience delivery category.

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In 2019 Uber proposed a merger between DoorDash and uber but the companies were unable to make an agreement on the terms. Later this year DoorDash acquired Squares Caviar food delivery service for $410 million.
Factors of production: Labor and Capital

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DoorDash began life as a paloaltodelivery.com and at launch the four founders ran the entire operation, which included building the app, receiving orders and delivering them. It instilled a culture in the startup which is still ingrained today, as DoorDash employees spend one day a month as a 'dasher' delivering food.

In the first year of operations, DoorDash expanded to 70 restaurants in the Bay Area and received $2.4 million in funding. It grew at a rate of 20 percent every week, according to Y Combinator.

Its goal was to build an artificial intelligence system capable of perfecting delivery, by taking into account every variant of the delivery process and using the data to better estimate delivery time and reduce errors. Named Deep Red in homage to the IBM chess system which beat Garry Kasparov, the system recommends restaurants to users and assigns the most capable rider to a delivery.

While it has not perfected delivery, DoorDash has established itself as the leader in the US market, surpassing incumbent Grubhub and global leader Uber Eats. In 2020, DoorDash was responsible for 45 percent of all food delivery orders, holding a double digit advantage over everyone else.

DoorDash made this leap to first position by aggressively expanding into markets, sometimes controversially adding restaurants onto the platform before contacting them.

In 2019, Uber attempted to merge with DoorDash, but the two rivals couldn't come to an agreement. DoorDash acquired Square's Caviar food delivery service for $410 million a few months later, which is still available to use.

DoorDash also launched a shared kitchen in 2019, which operate similar to dark kitchens that Deliveroo and Uber Eats use in Europe. These kitchens are located in areas with lower expenses and are delivery only, reducing the operating cost.

In 2021, DoorDash went public on the New York Stock Exchange at a $72 billion valuation.

DoorDash has never made a profit and although the US food delivery market is consolidating, it still looks unlikely that it will post a profit in 2021. Uber Eats acquired Postmates for $2.4 billion and Just Eat Takeaway acquired Grubhub for $7.1 billion, however all three competitors are still keenly fighting for market share in US cities through low delivery and service costs.

We have collected data and statistics on DoorDash revenue, usage and availability. Read on below to find out more.

DoorDash key statistics

DoorDash increased its revenue by 241 percent in 2020, from $850 million to $2.9 billion

In that same timeframe, it also decreased its losses by 30 percent, from $667 to $461 million

DoorDash has 18 million users, the vast majority of which are from the US

According to Edison Trends, DoorDash controls 45 percent of the US food delivery market

DoorDash overview

DoorDash revenue

DoorDash annual revenue
Source: The Information, DoorDash
DoorDash profit
Source: The Information, DoorDash
DoorDash users
Source: eMarketer, DoorDash
DashPass subscribers
Source: DoorDash
DoorDash restaurants

DoorDash US food delivery market share
Want to learn more about the food delivery market? Read our sector profile
DoorDash FAQ

Has DoorDash ever made a profit?

DoorDash has not made a profit, although losses decreased by 30 percent from 2019 to 2020

How many orders have DoorDash completed?

According to its corporate overview, DoorDash has completed over 900 million orders since inception

How many people work for DoorDash?

DoorDash has over one million riders who deliver food

What is the average order size from DoorDash?

DoorDash average order size was $37.28, only 20 percent spent more than $50 ( Rakuten)

What is the average wait time for a DoorDash order?

DoorDash average delivery time was 37 minutes in 2019 ( DoorDash)

How many cities is DoorDash available in?

DoorDash is available in over 4,000 North American cities

More Delivery App Data

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DoorDash Revenue and Usage Statistics (2022)

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DoorDash began life as a paloaltodelivery.com and at launch the four founders ran the entire operation, which included building the app, receiving orders and delivering them. It instilled a culture in the startup which is still ingrained today, as DoorDash employees spend one day a month as a 'dasher' delivering food.

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In 2021, DoorDash went public into the New York stock exchange. The company was valued at $74 billion dollars ranking them 769 in the Fortune 500.