For most of us, having food from our favorite restaurant delivered straight to our door has become part of our new normal.
Even before Covid-19, more and more people had been signing up for food delivery service one after another. At that time and still now, one of these services has claimed more of the market share than any other food service—more than double its closest rival.
That service is DoorDash.
DoorDash is a mobile app that connects customers with restaurants for meal deliveries. Originally created in California, DoorDash is now in over 4,000 cities and is a publicly-traded company.
Below, we’ve compiled the most important DoorDash statistics. We’ve noted when data sources are from our proprietary data and when they’re from trusted third-parties.
The RideShare Guy is the largest and most respected publisher on the topic of DoorDash. If you’re a reporter looking for more information and perspectives on the gig economy, reach out to The Rideshare Guy at email@example.com.
- The Creation of DoorDash: Palo Alto Delivery
- DoorDash Statistics
- DoorDash Overview
- DoorDash Revenue
- DoorDash Profitability
- DoorDash Valuation & DoorDash Stock
- DoorDash Fund Raising
- Number of DoorDash Subscribers
- Number of DoorDash Couriers: How Many DoorDash Drivers Are There?
- How Many Cities Does DoorDash Operate In?
- DoorDash US Market Share
- DoorDash US Competitors
- DoorDash Controversies
The Creation of DoorDash: Palo Alto Delivery
According to the Vator News When They Were Young series, DoorDash was founded in October of 2012 under the name Palo Alto Delivery. It was a simple idea to enable every restaurant merchant the ability to make deliveries.
Palo Alto Delivery started by discussing with business owners what their difficulties were, and quickly PaloAltoDelivery.com discovered having delivery drivers for all different businesses would solve a huge pain point.
On January 12, 2013, what we now know as DoorDash made their very first delivery. At this time they didn’t have an app, just a landing page with the restaurants around the Stanford campus, and a phone number. This wasn’t even a business phone number, they used their personal phones to set this site up.
In March of that same year, Palo Alto Delivery raised $120,000 in seed funding, and two months later, they incorporated in Delaware under the name we now know them by: DoorDash.
Nearly eight years later, DoorDash has now raised over $2.5 billion dollars, has 20 million users, and is valued at $16 billion. Not only that but, they have over half of the entire food delivery market share.
What started as some college kids trying to build technology for small business owners has become a publicly traded international delivery service company that covers over 4,000 cities.
DoorDash has weathered its share of controversy, but within the last year, has grown to dominate the food delivery service market.
- Founded by Evan Charles Moore, Andy Fang, Stanley Tang, and Tony Xu
- Headquartered in San Francisco, California
- Current CEO: Tony Xu
- DoorDash became a publicly-traded company on December 9, 2020
The goal of any business is to increase revenue, and DoorDash is no exception. Between the years of 2017 and 2019, DoorDash statistics reveal their revenue almost doubled. Then, in 2020, their revenue almost doubled again, reaching $1.92 billion.
Pre-pandemic growth can be attributed to a growing market, and restaurants nationwide.
However, the 2020 revenue boost is most likely due to the effects of the pandemic where the general public is more likely to order food in, especially during various levels of shutdowns and shelter-in-place orders.
With such a growth in revenue, the hope would be that the company would be profitable. However, like most delivery and rideshare companies, DoorDash statistics prove the company has not been very profitable.
In fact, in only one quarter of 2020 (April through June) DoorDash posted a profit of $23 million.
We’ve discussed before whether delivery companies will ever be profitable. It’s interesting to note that DoorDash statistics help prove that the company continues to grow in valuation, and revenue, without making a profit.
It’s also interesting to note that the only time DoorDash has been able to make a profit was during a global pandemic when millions were using delivery for the first time and as a necessity, along with others who had used delivery in the past but started to use it even more.
DoorDash Valuation & DoorDash Stock
Valuation, in a nutshell, is determined by solid figures as well as looking at similar businesses. The valuation of a company can be made up of money it has raised to this point in funding and what its assets are actually worth (absolute valuation) or it can be based on the performance of similar models and what they are worth (relative valuation).
As the assets of DoorDash have increased in value, the overall valuation of the company has also continued to increase.
DoorDash is now a publicly-traded company. DoorDash went public in December 2020, and its ticker symbol is DASH.
DoorDash Fund Raising
Since the initial seed funding of $120,000, DoorDash statistics indicate that DoorDash has continued to get funding, increasing every year as the revenue also increases.
Number of DoorDash Subscribers
In 2018, DoorDash announced a subscription service. For $9.99 a month, customers get $0 delivery fee on orders over $15. DoorDash found that the average DashPass subscriber saved $20 a month.
According to Payments Journal article More Customers Find DoorDash Subscription Plan Quite Appetizing by Raymond Pucci, “From August 2018 to August 2019, DoorDash said its program added over one million subscribers in its first year available. That number ballooned to over five million subscribers as of Sept. 30, 2020, according to DoorDash’s initial public offering filing. About 28% of DoorDash’s more than 18 million users are now considered monthly subscribers.”
How Much Do DoorDash Drivers Work?
According to CNBC, 90% of DoorDasher drivers work 10 hours a week or less. The average is 4 hours a week.
Number of DoorDash Couriers: How Many DoorDash Drivers Are There?
In 2017 there were around 100,000 DoorDash couriers, or “Dashers”. According to a filing made with the SEC in November 2020, DoorDash connects with “over 1 million Dashers”* in the United States, Canada, and Australia through our local logistics platform.”
*Based on the number of accounts held by independent contractors that have delivered an order through our platform, or Dashers, in the past month, measured as of September 30, 2020.
As recently as February 2021, a DoorDash spokesperson said it had added 1.9 million new drivers between mid-March and September of last year.
Again, the pandemic likely had a large effect on these numbers. When more people started using the service, they needed more Dashers to deliver the food. Not only that, with such a large unemployment rate, people were looking for ways to make money.
If you’re considering signing up for DoorDash, take a look at our article on how much does DoorDash pay to learn more.
How Many Cities Does DoorDash Operate In?
DoorDash is striving to be in more cities than any other delivery service. It is lacking in some smaller, more rural areas, but continues to grow. In some areas of the United States, DoorDash is the only delivery service currently available.
The growth has been amazing in just 5 years going from 21 cities, to over 4,000. Top DoorDash cities include:
- New York City
- Los Angeles
- San Diego
- Las Vegas
- San Francisco
DoorDash US Market Share
The market share is where DoorDash really stands out among its competitors. DoorDash statistics show that it holds a strong market lead above all of its competitors across the board.
In some markets, it shows a stronger lead than others. In San Francisco, for instance, DoorDash statistics has the company claiming approximately 73% of the market.
The latest stats show DoorDash has continued to grow – in January 2021, DoorDash had 56% of monthly meal delivery sales – more than double its next closest competitor, Uber Eats.
Source: Second Measure – https://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/
Read more on Uber statistics.
Wondering which delivery company has the biggest market share? Take a look at our video here: Which Delivery Company Has The Biggest Market Share?
DoorDash US Competitors
There is no shortage of food delivery services around the country and the world. However, the four biggest are DoorDash, Grubhub, Uber Eats, and Postmates (now owned by Uber).
Each of these appeals to different people for a variety of reasons. For instance, many people already use Uber for their ridesharing needs to get from point A to point B, so it makes sense for them to also use Uber Eats—which uses the same app—when it comes time to order food.
In addition to that, several companies have exclusives with certain restaurants. DoorDash partnered with Wingstop, Little Caesars, Wendy’s, and McDonald’s—officially ending their exclusive partnership with UberEats.
DoorDash also has a partnership with Chase credit card. According to the Chase website, as of the time of writing this article:
“Get a complimentary 3 months of DashPass, DoorDash’s subscription service that provides unlimited deliveries for a $0 delivery fee and reduced service fees on eligible orders of $12 on DoorDash and Caviar. After that, you are automatically enrolled in DashPass at half off for the next 9 months. After the discounted period ends, you’ll continue to be enrolled and charged the the current monthly DashPass rate.”
UberEats has contracted with Starbucks, Postmates with Popeyes, and Grubhub with Taco Bell and KFC.
All of this makes it difficult for any one company to hold on to customers for life. If a customer’s favorite food isn’t available on one service, they can simply use another service. Or if it’s cheaper to order from one service, or faster, etc., customers will likely choose the best service for their needs at that time.
Note this breakdown provided by Second Measure:
As you can see, DoorDash statistics claim the company has a large market share, again over 50% nationwide, but in some cities, competitors had a foothold first and they aren’t giving up easily.
In order to remain competitive, DoorDash has expanded its market with what they call DashMart. DashMart is a virtual convenience store that they are testing in select markets including:
- Chicago, Illinois
- Columbus, Ohio
- Cincinnati, Ohio
- Dallas, Texas
- Minneapolis, Minnesota
- the greater Phoenix, Arizona area
- Salt Lake City, Utah
- Redwood City, California
According to a blog post on the site for DoorDash, “DashMart is a new type of convenience store, offering both household essentials and local restaurant favorites to our customers’ doorsteps. On DashMart, you’ll find thousands of convenience, grocery, and restaurant items, from ice cream and chips, to cough medicine and dog food, to spice rubs and packaged desserts from the local restaurants you love on DoorDash. DashMart stores are owned, operated, and curated by DoorDash.”
The DoorDash app shows the categories that DashMart offers, including but not limited to, Household, Personal Care, Medicine, Baby, Pet Care, and more. It also boasts that you’ll receive your order in 30 minutes or less, which is faster than most grocery delivery apps will promise you.
Despite their overall success, DoorDash is not without controversy and scandal, mainly centered around issues like DoorDash pay and restaurant costs.
In July 2019, The Verge published an article titled Delivery apps like DoorDash are using your tips to pay workers’ wages by James Vincent.
In a nutshell, DoorDash was being accused of using tips given by customers to pay drivers less.
How it worked was there was a set amount that DoorDash was prepared to pay each delivery driver. If a customer tipped the driver, DoorDash would subtract that amount from what they were paying the driver instead of adding it as a tip on top of what they would have earned anyway.
The New York Times report Andy Newman summed it up well:
“DoorDash offers a guaranteed minimum for each job. For my first order, the guarantee was $6.85 and the customer, a woman in Boerum Hill who answered the door in a colorful bathrobe, tipped $3 via the app. But I still received only $6.85.
Here’s how it works: If the woman in the bathrobe had tipped zero, DoorDash would have paid me the whole $6.85. Because she tipped $3, DoorDash kicked in only $3.85. She was saving DoorDash $3, not tipping me.”
Cost of business too high for some
A Berkeleyside article written by Cirrus Wood was published in November 2020, outlining the high costs of some businesses to utilize services such as DoorDash, especially during a pandemic when, in some cases, the percentage being charged to these businesses has increased.
The article stated of a Texas-style barbecue restaurant:
“Pre-pandemic, Smoke had been doing around $1,200 a week in sales via third-party delivery apps, paying around $400 in commission, and netting around $800 for the business. Roughly the equivalent of an extra Monday’s worth of business. ‘We weren’t focused on [apps] saving our business, just looking to enhance our existing one,’ said Hagler.
But since the coming of coronavirus, orders coming from third-party delivery apps have gone from a modest 15% at Smoke to nearly 80%. The jump has been jarring for the business.”
With many restaurants unable to afford to run their own delivery fleet, they have to eat the costs associated with using apps like DoorDash to get the food to their customers. Each business owner has to weigh the cost of service versus their bottom line to see if it’s worth the extra cost.
Going from a small delivery service of the name Palo Alto Delivery to the well-known DoorDash, this company has kept a sure footing in the delivery market space.
The creators of Palo Alto Delivery probably did not start their vision with the end-goal of becoming a billion-dollar publicly-traded company. But through hard work, funding rounds and a global pandemic, they have solidified their stake.
Despite the tipping fiasco and other controversies, DoorDash statistics show the company has continued growing its business, expanding to 4,000 cities worldwide. It has the largest stake in the delivery market and is continually moving with the times to keep customer interest and engagement, including creating a virtual convenience store DashMart.
The last piece of the puzzle is for DoorDash to become profitable outside of the boom associated with a global pandemic.
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-Tyler @ RSG with additional reporting from Paula Gibbins