How Does DoorDash Work?

DoorDash is an on-demand logistics set-up. It is an intermediary that works as a liaison between sellers and buyers who want products to be door delivered. DoorDash was founded in 2013. At present, it works only on food delivery.



DoorDash’s business model is designed in such a way that it benefits both restaurants selling quality food and the ones looking to enjoy them. On one hand, DoorDash facilitates users to find restaurants of their choice and order food. On the other hand, it opens a profitable avenue to restaurants and helps them gain access to a wider customer base. Apart from this, it also provides several employment opportunities to freelance agents delivering food.


DoorDash has successfully raised a considerable amount of funds ever since its inception in 2013. It has now tied up with several leading restaurant chains situated in major cities across the USA. It is always advisable for restaurants to rely less on third parties and use a restaurant website builder to manage digital business on its own.


The Restaurant Food Delivery War - Who Wins the Game?

DoorDash and UberEats are experiencing a surge in average sales per customer, especially after the pandemic situation set in from 2020.


In addition to the number of customers ordering from food delivery services increasing steadily, the average sales per individual has also increased over the past two years.


Average Sales Per Customer (Comparison between 1st quarter of 2020 & 2022)


-DoorDash – 90% higher in 2022 than 2020

-Uber Eats – 72% higher in 2022 than 2020


Mode of Revenue Generation-How Doordash Does Business & Earns Money

This is the model of DoorDash’s revenue generation. It makes money this way:


i) Commission Per Order:

When customers make food orders online using DoorDash, the delivery agent picks up the food from the specific restaurant and delivers it at their doorstep.  For every order successfully delivered, DoorDash charges a minimum 20% commission from restaurants.


ii) App Marketing & Advertising:

Doordash also charges restaurants that use the app for their marketing and advertising campaigns. Restaurants must pay DoorDash a commission to top the list of restaurants for a limited time and also for pop-up advertising in advanced searches.


iii) Delivery Fees:

The app’s own drivers are called Dashers. The delivery charges depend upon the distance and also the kind of tie-up that DoorDash has with the particular restaurant. On an average, the delivery fee ranges between $5 to $8 for every order.


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How Does Doordash Work?

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