How DoorDash Makes Money?

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

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

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

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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?

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

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SUBSCRIPTION

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

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

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