I have a friend who has been investing in stocks for 25 years and running a tech company listed on the Indian stock market.
When I shared DoorDash IPO news with him, he replied, “How could a startup which only has a tiny app as the business asset could raise $2 billion through IPO?”
You must also have the same question – whether you’re an investor just planning to buy DoorDash stock or entrepreneurs planning to develop an app like DoorDash or DoorDash clone.
Before exploring the business tactics of DoorDash, let’s first take a look at some of the data we have.
How successful is DoorDash? – What does data say?
- DoorDash is having around 38% of the share in the US online food delivery market.
- The market value of DoorDash is over $16 billion.
- DoorDash has raised more than $2 billion of funding.
- There are 200,000 drivers registered on DoorDash to deliver food.
- Almost 90% of top US restaurant brands work with DoorDash.
- So far in 2020, DoorDash has reported $1.9 billion in revenue.
- The startup enjoys an extensive customer base of 18 million customers.
- There are 300,000 restaurants registered on DoorDash.
- 1.5 million people have bought DoorDash’s subscription service – DashPass.
- DoorDash has filed one of the largest IPO in 2020 and its shares will be listed on the New York Stock Exchange.
How did DoorDash react to COVID-19? – A Timeline
When the pandemic hit, the valuation of DoorDash was around $12 billion.
In June 2020, the DoorDash valuation reached $16 billion!
That was the increase of a whopping $4 billion in just 4 months! (In other words, its valuation increased by $33333333 on each day during these 4 months)
There must be some exceptional efforts they have put in during the pandemic! Let’s find out.
Be it delivery drivers or restaurants, DoorDash knows their worth.
By launching a multi-channel marketing campaign for restaurants, DoorDash urged people to help restaurants survive COVID-19.
The tagline they used was, while the doors may be closed, the kitchens are open for delivery.
The company also announced that it will offer paid leaves or financial assistance to the delivery drivers diagnosed with the coronavirus or quarantined.
April, May 2020
To help local restaurants during the challenging time, DoorDash’s CEO announced that they are cutting restaurant commission by 50%.
Because of its endless collaborative efforts, it emerged as the fastest-growing food delivery app during the pandemic. (DoorDash similar companies were nowhere near!)
June, July 2020
DoorDash raised fresh capital of $400 million. With this new round, its valuation hit $16 billion.
Sensing the demand for pharmacy and grocery delivery, DoorDash partnered with CVS for same-day delivery.
DoorDash also partnered with food banks to deliver food to needy families amid the pandemic.
August, September 2020
As expected, DoorDash branched out and launched an on-demand grocery delivery service from its app.
DoorDash again took a step in the favour of the restaurants. It tied up with the National Restaurant Association and hosted a virtual meeting of restaurant owners to let them learn from one another.
October, November 2020
DoorDash rolled out its corporate delivery program for companies working from home. More than 4000 companies had already registered for this new program.
Last but not least, DoorDash announced plans to go public!
5 Business Tactics of DoorDash
You Should Learn Now While Developing DoorDash Clone app or Before Buying DoorDash Clone Script
Needless to say that a startup that only has a tiny mobile app as a business asset cannot increase its valuation by $1 billion per month without some genius tactics.
- On-ground research and evaluated execution are essential.
Before starting DoorDash, the founder and the co-founder were believing that delivery isn’t important.
But one day, when the co-founder met a store manager, he identified that not having enough drivers to deliver orders was the big pain of stores.
Then he didn’t change the focus overnight. Instead, he interviewed more than 200 store managers.
Once he validated that delivery is a major pain, he started exploring the market to target.
After executing on-ground research, he selected the food industry (restaurants) as the target market.
Coming to product (app), they kicked off with prototyping. The founder and co-founder made the delivery themselves – for more than once – to get better 1% with every delivery!
- Product (app) can be replicated, but not the brand value and customer experience!
DoorDash can easily be cloned by any team of developers. And the founders of DoorDash knew that before anyone else could (even you & me!).
Thus, they put extra effort into raising substantial amounts of money, gaining more ‘friendly’ control over delivery drivers, and building the fastest ever customer support system.
As a result, 99.99% of people prefer DoorDash over other hundreds of food delivery services like DoorDash or DoorDash clones.
Good customer service can be your best marketing asset.
If you even discard a few features from your DoorDash clone app and focus more on customer service, you will attract more customers than your expectation.
Because, people are more likely to remember how you make them feel, rather than how you make them ‘impressed’ with a so-called ‘advanced feature’!
- Keep yourself always alert to identify and then seize opportunities!
DoorDash has been letting people order food since 2013. Its executives had never thought that one day they would let people order groceries as well.
But during the pandemic, when people are more likely to avoid visiting the grocery store and order groceries online, DoorDash launched grocery delivery.
If you’re planning to develop a food delivery app like DoorDash, I would suggest exploring more modules including grocery delivery, medicine delivery.
For that, you don’t have to increase your app development budget dramatically. You only need to extend your partnered network.
This strategy will guarantee you a 200% ROI and break-even time of just a few months.
- Focus on customers, not competitors.
A customer-obsessed company always finds more time to focus on customers.
And a competitor-obsessed company always traps in the loop of infinite competition.
During the initial time of the DoorDash, they demonstrated this philosophy – after the major downtime of its system, DoorDash refunded all orders.
(For a new startup that counts every spending, refunding all orders is the big deal!)
- Don’t just focus on the product. Polish the company culture too!
Even the world’s greatest product fails to dominate the market if the employees and executives of the company don’t feel the highest state of greatness to be part of every business operation.
The employees and even the executives of DoorDash do not deny to make the delivery. They even engage in customer support – in a direct way.
To your success – we will contribute DoorDash clone or custom or MVP, business model, trademark/company registration, digital marketing, and investor pitch deck.
Yes, we’re not just an app development agency, we’re an app business solution provider.
We aim to work with startups and solve every query that stops them from building an empire.
Our clients find us as a strategic partner!
So far in 2020, we’ve brilliantly performed our role of strategic partner for 50+ startups.
We learned, we helped, and we witnessed them getting closure to their goals – this is what our 2020 timeline is!
We can’t wait to see you getting closure to your goals!
- How much does it cost to develop a DoorDash clone?
We have a flexible pricing model which probably depends on the kind of business and the app requirements. Android app development, iOS app development, or cross-platform app development, each of the niche has different requirements to differ in cost. We can discuss your requirements and cost details via call or email.
- Do you develop a custom food delivery app?
We have in-house app developers and designers that take your every custom requirement into the account and develop the food delivery app from scratch. Our teams are also clever enough to add advanced features working on AI and machine learning technologies in the app.
- Will you help me with legal things?
Yes, we provide dedicated services for trademark registration as well as company registration. We can also provide you with legal consultation.
- When will you deliver the app?
Based on your requirements, it will take somewhere between 15 days to 90 days.
- Will you provide different apps for restaurant owners and delivery drivers?
Yes, there are 3 major stakeholders – users, delivery drivers, restaurant owners – involved in the food delivery app business. Each of these users has different characteristics and requirements that can be satisfied with different apps.