DoorDash pulled off one of the most underappreciated market share robberies of all time.
In just 3 years, they exploded from 16% to 53% share of the US delivery app market.
Here’s 4 strategies they used to crush Uber Eats, GrubHub and Postmates:
1. Avoiding the competition
DoorDash targeted restaurants without delivery services, often with pre-existing customer bases, rather than competing for newer restaurants with multiple other providers.
2. Empowering restaurants
DoorDash acquired restaurants by providing them with not just delivery services, but data they never had before: popular dishes in the area, customer demographics, local delivery times and more.
3. Maximising AOV
DoorDash focussed on winning outer suburbs with large family homes – an underserved segment with a much higher average-order-value (AOV) than urban regions.
4. Brand positioning
When Covid hit, DoorDash supported its Dashers and restaurants by offering payment advances and other benefits, creating significant supply growth for their marketplace.
Doordash saw the opportunity, developed a plan… and they delivered.