DoorDash today has become one of the leading on-demand food delivery apps in the USA. The reasons for this rapid success are obvious—a robust and sustainable business model, convenience, and efficiency at its best. The steady rise in its popularity has piqued investors’ and entrepreneurs’ interest all around the globe. Everyone nowadays dreams to build an app like DoorDash. And as much as they’re intrigued by the app’s success, they wish to dig deeper into the real big questions around DoorDash’s business model.
What exactly makes DoorDash a huge success?
How does it make money?
What’s the secret revenue model?
This blog will help you find answers to all these questions while also giving you clear directions to your next big business venture. So, get ready to create a DoorDash clone for your upcoming business.
How Does DoorDash Work?
DoorDash is a dispatch company that was set up in less than a day with a simple mission—to deliver packages. Founded in the year 2003 by four Stanford graduates, DoorDash has set substantial precedents in the logistics and on-demand industry and quickly commanded global attention.
The DoorDash services are fully operational in more than 4000 cities in the USA and Canada.
Designed to benefit users as well as the restaurants, the DoorDash app makes it possible for users to order food from a restaurant of their choice. It gives restaurants access to an extended customer base. Besides its incredible financial success, this app employs several individuals.
Now that we know what DoorDash is all about, let’s look into its operational framework, which is just as convenient and reliable.
Why Create a DoorDash Clone?
Doordash has raised significant funding from investors and has successfully built tie-ups with many popular restaurant chains in major cities of the USA. There is a definite thought behind this. The On-demand food delivery industry is bound to expand in the times to come. It’s now time to understand the Revenue model of DoorDash.
DoorDash: Revenue Model Explained
Next up, let’s talk about money! For someone looking to build an app like DoorDash, looking into how this successful food delivery platform generates revenue becomes important. There are three main ways by which DoorDash makes money:
- Commission: For every order delivered, DoorDash charges a commission percentage, which is usually 20% from restaurants.
- Advertising: DoorDash smartly makes revenue by charging restaurants for their marketing and advertising on their app. This includes being in the top searches, pop-ups for the advanced search for which they charge a commission.
- Delivery Fees: Charging an average delivery fee of $5 to $8 per order, DoorDash has tie-ups with the restaurants.
DoorDash Value Propositions
DoorDash operates on a ‘Y structure business model’ that focuses on all three food delivery cycle segments- restaurants, customers, and drivers. The app provides 24-7 food delivery services for its customers, along with a massive number of restaurants to choose from all over the city.
On the other hand, the restaurants benefit from an extended customer base, efficient route planning, and extensive branding and marketing. DoorDash is also of great significance to the drivers. The app has become a great source of income for the Dashers who can easily make more than $600 in a year.
The best food delivery apps in India like Zomato and Swiggy were designed after the very successful DoorDash business model.
8 Step Guide to Build Your Own Food-Delivery App Like DoorDash
Here are the eight simple steps to build an app like DoorDash, made just for you.
Step 1. Conduct extensive market research and choose the right target audience for your business.
Step 2. In-depth competition analysis.
Step 3. Choose a business model that suits your business requirements and future goals.
Step 4. Select the right design for your platform, one that meets both user requirements and appeals to your target audience.
Step 5. Choose the right app functionalities, some additional features such as advanced analytics, 24*7 in-app chat support system, and ROI driven online marketing campaigns will help you build a highly efficient and sustainable online marketplace.
Step 6. Choose a highly scalable app development software. Code Brew of all the software solutions offers all the above-listed features.
Step 7. Create a Minimum Viable Product (MVP) before the actual launch. Testing the efficiency of the platform and knowing the feedback from early adopters will help you make suitable changes to the platform before revealing it to the masses.
Step 8. Once you’ve launched the app, it’s time to validate your assumptions and take proper feedback/reviews. The key to a successful platform is constant validation and adapting well to the constantly evolving business requirements.
Ready to Launch Your Own App like DoorDash?
Once everything is in order, it’s time to pick the right online marketplace builder or app development software. If DoorDash is the platform that you seek inspiration from, then you must have an app that is flexible, easy to use, supports different business models, offers real-time tracking features, and has an effective 24-7 customer support model.
Code Brew, a highly trusted app development firm, goes beyond providing the conventional business model. Hired by several leading on-demand food delivery apps, the features that Code Brew extends will give your business a competitive edge.
We understand how the pandemic has altered our business perceptions, however, nothing’s impossible with the right business strategies and business model. So, if you’re still procrastinating the idea of starting your own online marketplace, now is the right time to Get In Touch with us. Book your free demo now and get going! Try looking into more Online Business Ideas to kick-start in 2021 here.February 5, 2021