DoorDash is an on-demand food delivery service which bridges the gap between customers and the restaurants America and Canada just like Zomato in India. The business model of DoorDash is such that it is beneficial for customers, merchants and the delivery people simultaneously because of involvement of all three segments in each transaction.
Just like most of the start-ups, DoorDash also faced a lot of hurdles in the beginning specially with the funding. However, as time passed, DoorDash coped up with the needs of customers and achieved enormous success and its net worth is estimated to be around $4 billion now.
Features:
DoorDash provides a long list of features to its users which make the app easy to use, responsive and very interactive. Some of the features which stand out in that list are mentioned here.
- Suggested List on the basis of customer’s choice.
- Top Menu showing top foods ordered by a customer from a specific restaurant.
- Dual Rating allowing the customers to rate both the food and the delivery guy.
- Live Tracking of customer’s order after ordering the food.
- Schedule Delivery to schedule the order in even a week in advance.
- Company Delivery Drivers who are addressed as “Dashers”.
- Nominal Delivery Fee ranging from $5 to $8 only.
- Reasonable Commission of 20% per order from merchants.
- DoorDash Service available in 20 places in Canada and USA.
- Dashers Income on an average is estimated to be around $60,000 in a year.
As the business model of DoorDash was a huge success, it motivated other businesses like Zomato, Swiggy, FoodPanda, etc. to operate in India with full force ending up being quite successful eventually.
Business Model & Working of DoorDash:
The business model which DoorDash follows is a Y-structures business model taking care of perspectives of its all three business segments together – the users, the restaurants and the dashers. Offering all of them the right and necessary features within the app and the necessary benefits out of it, DoorDash business model is a success known and followed worldwide.
Here is how DoorDash benefits its various business segments:
For Users:
- A large number of restaurants to order from around the city.
- 24x7 availability of service.
- Live tracking of orders on the way.
- Easy and quick solution to cravings.
For Restaurants:
- Extending the customer base further.
- Providing own delivery personnel for the deliveries.
- Reaching new and repeat customers all over the city easily.
- Great way of branding and marketing.
For Dashers:
- An amazing source of income.
- Dashers’ income on an average is estimated to be around $60,000 in a year.
- Opportunity to earn more in the form of tips from customers.
How DoorDash Works:
DoorDash is an easy-to-use application for all the users in order to fulfil their desires of receiving their food at home. Here are simple steps in which DoorDash works:
- Choose the order
The users can explore the app and its restaurants checking all the available food items and can choose what they prefer to order from the wide range of products. - Payment Options
The in-app payment integration makes it really easy for the users to pay for their orders from within the app without having to worry about paying later or in cash. - Live Tracking
Once the order has been prepared, the dasher picks it up and leaves for delivery. His movement is tracked live within the app as he is on his way to deliver the order thus allowing the users to know exactly where the order has reached. - Delivery
The dasher delivers the food at the drop-off point thus completing the order status. Customers can pay tip to the dasher according to their wish.
Revenue Model:
Now that the business model of DoorDash is crystal-clear, another important aspect of any business i.e. revenue generation must also be discussed and understood. The earning of DoorDash relies on the following sources:
- Commission
Each order served by a restaurant as made by the customer yields 20% commission of the order amount to DoorDash thus leading to major Return of Investment. - Advertisement
If a restaurant wants to advertise itself in the application, it can pay a specific amount to DoorDash in order to be placed in top restaurants in order to increase visibility and fetch more customers and orders. - Delivery Fee
The delivery charges vary from $5 to $8 and are decided according to the distance from pick-up point to the delivery point. - Channels
DoorDash operates from multiple online channels such as its website (www.doordash.com) and via its application on both iOS and Android.
Conclusion:
The business model and operations of DoorDash and other on-demand food ordering apps are quite strategic and must be understood in-depth before investing for the same. If you have a similar idea and wish to create an on-demand food delivery application like DoorDash, contact us at info@omninos.com and we would be glad to develop the perfect application for you in the decided time frame.