@scott-d.-claryScott D. Clary
Host of The Success Story Podcast | Founder/CEO @ROIOverload | Forbes, Hackernoon, Startup
Uber Eats, Grubhub, Postmates, and DoorDash have been locked in heated competition for years now, vying for dominance in the “Food Delivery War.”
However, DoorDash overtook its competitors with a 55% market share in March 2021 and 56% of all food delivery orders in America.
DoorDash has evolved from a small, student-founded startup to the most successful online food delivery platform in America in just seven years. It has even broken into the Australian, Canadian, and Japanese markets. Pretty impressive for a company that is not even a decade old.
In 2012, Stanford students Tony Xu, Stanley Tang, Andy Fang, and Evan Moore began working on an app for small business owners.
They weren’t sure what they wanted to build, only that they wanted it to be used by small businesses. So they interviewed hundreds of business owners in the area, asking what their ventures were like and if there was anything in particular that they needed help with.
They tried setting up iPads by the retail point of sale so that customers could answer a short marketing attribution survey. But, unfortunately, while some customers were willing to answer the survey, it wasn’t conducive to the business.
On a subsequent occasion, after interviewing a macaron store owner, they overheard her turning down a delivery order.
That was when they realized that food delivery was an issue for restaurants in the area.
After asking around again, they found out that very few restaurants deliver due to inconsistent orders. Small businesses can’t afford to have their own fleet of delivery drivers when they might receive several delivery orders one day and virtually none the next.
Palo Alto Delivery
The four students launched PaloAltoDelivery.com, which only had a Google Voice number and menus in PDF format from a few local restaurants. They charged a flat rate of $6 per delivery with no minimum order size, and the four of them personally handled the deliveries.
Once business took off, they started receiving more orders than they could handle. So they began hiring people to help with deliveries, hung flyers, and also posted on Craigslist.
DoorDash and YCombinator
In 2013, after successfully pitching DoorDash to investors in YCombinator, the company received $120k in seed capital and officially renamed the company from Palo Alto Delivery to DoorDash.
In 2015, DoorDash was…
Continue reading: https://hackernoon.com/how-doordash-has-been-winning-the-food-delivery-war-nr14326b?source=rss