DoorDash operates an online food delivery platform, connecting restaurants with customers, across the US, Australia, Canada and Japan. As of July 2021, the company was the market leader in the US among OFD players, with an estimated 57% market share. Its US operations span over 4,000 cities, with more than 400,000 restaurant partners servicing over 18 million customers, as of April 2021. DoorDash is one of the first startups (along with Postmates) to offer a delivery facility through an aggregator platform, which competitor GrubHub only started in 2015. The company has also expanded into grocery and convenience store delivery over the last 2-3 years, with a hybrid business model consisting of a mix of supermarket partnerships and its own network of dark stores.

In contrast to competitor UberEats - which has expanded aggressively through a series of acquisitions - Doordash has predominantly grown organically, with the support of a few strategic acquisitions. The company’s plans to acquire Finnish online food delivery platform Wolt in November 2021 for ~EUR 7 billion (~USD 8 billion) could be its largest to date. The acquisition is expected to support DoorDash’s global expansion strategy, which is to enter the European market. Previously, the company acquired Chowbotics, the developer of a stationary salad-making robot, “Sally,” in February 2021, with the acquisition  expected to expand the menu offerings of partnered restaurants and provide greater “access to fresh and safe meals." In August 2019, the company bought rival online food delivery platform Caviar for USD 410 million. The acquisition strengthened Doordash’s market share in Pennsylvania and Oregon, where Caviar had more than 10% market share. 

Prior to the pandemic, DoorDash charged restaurants a commission of up to 30% of order value, and a service or delivery fee from customers, depending on the type of service (takeout or delivery). However, during the height of the Covid-19 pandemic, third-party delivery platforms were criticized for their heavy commission fees, with several cities across the US imposing a temporary 15% delivery commission cap to support restaurants, given their higher dependency on third party food delivery providers. In response, DoorDash introduced a new three tiered commission structure for US restaurants (with less than 75 locations) in April 2021, ranging between 15%-30% delivery commission (+6% pickup commission), with limits on 1) delivery area; 2) app visibility; and 3) access to high-value DashPass customers, for the lower commission range. Under the new commission structure, consumers bear a higher share of delivery costs. Consumers who subscribe (USD 9.99 per month) to DashPass, however, are eligible for zero delivery fees on orders over USD 12.00. The company classifies DashPass subscribers as “high-value”, likely due to their frequency of ordering food delivery. DoorDash, along with competitors Grubhub and UberEats, filed a lawsuit against New York City in September 2021, to block new legislation that caps delivery commissions charged by third-party apps at 15%. The company previously teamed up with Grubhub to sue the city of San Francisco in July 2021 following the enactment of a permanent commission cap.

DoorDash also operates other business models such as 1) DoorDash Self-Delivery: a platform that allows restaurants and food businesses to have a listing on the DoorDash platform, while using their own delivery people and setting their own delivery zone and fees (lower commission vs. restaurants that use DoorDash’s drivers); and 2) DoorDash Drive (Drive): a white-label product, which allows participating restaurants to offer delivery through their own apps or websites (instead of the DoorDash app) with delivery being carried out by DoorDash drivers. Drive restaurant partners including Chipotle, Denny’s, Wingstop and Little Caesars.

For FY2020, DoorDash reported a surge in revenue, up 226% YoY to USD 2.9 billion, supported by a strong 210% YoY increase in orders to 816 million, which resulted in a 207% rise in Marketplace GOV to USD 24.7 billion. The company attributed the sharp growth in order volumes to favorable conditions for food delivery (lockdown measures and in-store dining restrictions) and a rise in orders done through its Drive platform. Despite the strong topline performance,  DoorDash failed to report a profit, recording a loss per share of USD 7.39, though 52% lower than the previous year’s loss. For FY2021, the company expects marketplace GOV to range between USD 39-40.5 billion, implying a 58%–64% YoY growth. Additionally, the company estimates adjusted EBITDA guidance to range between USD 150-350 million, implying YoY growth of up to 85%.