How DoorDash Makes Money?

DoorDash is an on-demand food delivery platform that allows customers to order food and beverages from restaurants nearby.

DoorDash works together with over 300,000 restaurants and is available in 4,000+ cities across the US, Australia, and Canada. 

The company was launched by a group of Stanford MBA’s who initially worked on DoorDash as part of a class project.

They have gone on to raise billions of dollars in funding for DoorDash, which went public back in December 2020. 

In spite of its overwhelming success, DoorDash has also been widely criticized for the way it treats its drivers, which are employed on a contractual basis. 

In 2021, DoorDash generated $4.8 billion in revenue. But how does America’s leading delivery platform make money? 

Restaurants pay anywhere between 15 – 30 percent in commissions. DoorDash also charges delivery and service fees to customers.

COMMISSIONS

The platform offers a premium subscription called DashPass, which costs $9.99 per month in exchange for free deliveries and other discounts. 

SUBSCRIPTION

Restaurants that want to increase their exposure on the platform can do so by purchasing various promotion packages.

ADVERTISING

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