How DoorDash Became America's Biggest Food Delivery Provider
Two years ago, DoorDash was behind Seamless and Ubereats in the food delivery space. This month, DoorDash had an IPO which valued the service at a $30B+ valuation as American’s largest food delivery provider.
Taking over an incumbent such as Uber at the time is a David vs Goliath battle. Here’s how DoorDash did it.
Focusing On Suburbs
DoorDash found that delivering to cities is hard. The customers expect to pay less, and the drivers expect to be paid more. There’s also traffic, and finding parking is extremely hard as a driver. When DoorDash shifted their focus to the suburbs, they had better fundamentals and even more people to cater to. While other services struggled in the cities, DoorDash thrived delivering to families in the suburbs.
DoorDash achieved product market fit by first launching in Long Island, New Jersey, Westchester, and Connecticut. Their business skyrocketed and were profitable in months.