Founded in 2013, DoorDash is an online food ordering platform based in the outskirts of California. Users can search and order food and drinks from nearby eateries using the company’s mobile and web platform.
Also, DoorDash went public in 2020 and began trading on NYSE (New York Stock Exchange) for $182/share, giving the meal delivery company a market capitalization of $57.7 billion.
What’s more, the meal delivery service also created its own ad platform, allowing eateries to post ads on top of search results on the app. Investors were enticed by this strategic business ads move, and the stock of the food ordering platform rose nearly 10% in 5 trading days.
Moreover, the company experienced a 69% increase in revenue in 2021 from 2020, totaling $4.8 billion in FY 2021. With over 7500 employees, DoorDash has more than 20 million customers and holds a 57% market share in the US.
Also, using DoorDash, users can order anything, from ready-made meals to drinks to groceries from almost 300,000 local eateries, grocers, and outlets.
Besides, the orders placed via DoorDash service are delivered by the Dashers (fleet of freelance delivery workers). Hence, eateries don’t require delivery drivers to complete the orders.
Currently, the company offers three plans, including Basic Plan for 15% commission, Plus and Premier for 25% and 30%.
Eateries on the DoorDash platform place their menu prices, and to gain an extensive reach, may pay for plus and premier packages.
Nonetheless, the food delivery platform faces stiff competition from other food services such as UberEats, Instacart, Postmates, etc.
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Top 10 Alternatives and Competitors to DoorDash
Nothing beats the joy of having your food delivered right to your doorstep. Albeit DoorDash is one of the best and most popular meal delivery services, here’s an in-depth analysis of other food companies that can help you choose the one that works the best for you:
GrubHub
- Founded: 2004.
- Headquarters: Chicago, Illinois.
It is an online food ordering and delivery platform that connects customers with local stores and eateries. Also, using tech-driven processes, GrubHub fulfills over 715,000 orders every day.
With over 2700 employees, the company features almost 320,000 restaurants and partners with 32 million diners. Also, the company operates in almost 4000 cities in the US and serves over 23 million customers.
What’s more, GrubHub generated revenue of $551 million in the first quarter of 2021 as to that of $363 million in Q1 2020.
GrubHub’s competitive edge over DoorDash is its customer-focused pre-order service. Also, the platform combines its expertise in both foodservice and tech to provide customers with the most convenient experience possible.
It allows the users to track down their orders from AAPI-owned eateries to their doorstep.
Moreover, in 2021, the company partnered with Resort World Las Vegas, and Yandex, and merged with JET (Just Eat Takeaway) to further expand its dominance in the industry.
UberEATS
- Founded: 2014.
- Headquarters: San Jose, California.
Uber – who doesn’t know about the ride-hailing giant? It’s a name synonymous in every household. But did you know it also offers a food delivery service known as UberEATS?
With over 9000 employees, UberEATS offers a 24/7 food delivery service and operates in more than 500 cities having a network of over 220,000 plus eateries.
With a market share of almost 23%, the company generated $8.3 billion in revenue as of 2021.
Also, in the US, the food delivery company controlled more than 25% of the food delivery market as of May 2021.
The company’s key competitive edge over DoorDash is its taxi service. Yes, the seamless integration of UberEATS with Uber’s taxi service provides access to millions of riders worldwide. This, in turn, allows the users to place immediate orders for specific meals or ingredients or can even pre-order in advance.
The best part? It’s a lot cheaper than DoorDash, as you just have to pay $2 for orders below $10 and $3 for a $15 order.
Seamless
- Founded: 1999.
- Headquarters: Chicago, Illinois.
Seamless makes food ordering for takeaway and delivery a breeze. The food delivery service has been a part of GrubHub’s network of brands since its acquisition in 2013.
With more than 2 million members in the US alone, the company is a force to be reckoned with in the meal delivery industry.
Also, the food delivery service, Seamless serves over 4000 companies and is currently partners with more than 12,000 eateries.
Plus, in 2021, it established a campaign to assist its eateries partners and revamped the customers’ takeaway experience.
Several trucks were transformed into mini eateries by the company. So instead of delivering food, these portable restaurants brought the dining experience to the customers’ doorstep. The company’s creativity makes it a strong competitor to DoorDash.
Amazon Fresh
- Founded: 1994.
- Headquarters: Seattle, Washington.
Amazon Fresh is a subsidiary of an eCommerce giant, “AMAZON.” It is not just another meal delivery service; instead, it allows users to stock essential pantry items with zero hassle.
Currently, Amazon has over 9.7 million sellers globally and has been catering to the needs of its customers.
Also, the company’s sales revenue was more than $469 billion in 2021. What’s more, Albertsons and DoorDash both joined hands to provide on-demand grocery from almost 2000 stores. This strategic move will put DoorDash in direct competition with other online grocers such as Walmart+, Amazon Fresh, etc.
Nonetheless, with Amazon Fresh, customers can even buy fresh produce, dairy, seafood, meat, whole foods 365 products, and packaged foods.
It is one of the top competitors to DoorDash, especially when it comes to online grocers.
Waitr Holdings Inc
- Founded: 1999.
- Headquarters: New York City, NY.
It is one of the top food-tech companies that provides delivery and food ordering platforms. Bitesquad and Waitr are two alternatives to DoorDash offered by the company.
Waitr Holdings Inc generated a revenue of $182.2 million as of 2021 as that of $204.3 million for the year 2020, struggling in 2021.
It is one of the finest DoorDash alternatives for customers seeking restaurant food and take-outs. Also, the companies can order using a robust meal delivery platform, Bitesquad, for complex planned orders.
Also, the app comes with intuitive features that help users in placing large pre-orders for several people with varying dietary and taste requirements.
Thus, Bitesquad and Waitr can help Waitr Holdings Inc steal high-end and loyal customers of DoorDash.
Favor
- Founded: 2013.
- Headquarters: Austin, Texas.
It is an online food ordering and same-day delivery service based in the outskirts of Texas. Also, Favor serves companies and customers in more than 130 cities and towns in Texas. The best thing? All orders are delivered within the period of 24-hours.
Currently, the company makes around $530 million in revenue per year. The platform also offers a sophisticated app via which customers can easily order their favorite food by just signing up; the whole process only takes a few minutes.
Also, the delivery service employs more than 100,000 runners who act as personal assistants. To date, the company has delivered over 50 million medical prescriptions, things, etc. Without a doubt, Favor is one of the top competitors to DoorDash in Texas for several reasons.
Dumpling
- Founded: 2017.
- Headquarters: Seattle, Washington.
It is a food delivery startup that was formed to challenge the status quo. In 2020, Dumpling raised around $6.5 million in Series A funding in order to fuel the growth of shopping and delivery businesses.
This strategic move turned out to be profitable for the company as it rose the order by almost 20 times. The best thing? The company offers personal shoppers a one-of-a-kind opportunity to launch their own meal delivery service.
Customers only have to pay a one-time $10 fee for set-up and $5 for every transaction, with an average order value of $33.
Over 20,000 personal shoppers have started their own businesses, and the credit goes to the Dumpling’s lucrative business model.
Also, Dumpling might steal some of the loyal customers of DoorDash because of its lucrative approach.
Postmates
- Founded: 2010.
- Headquarters: San Jose, California.
It is a food delivery service that prides itself on its mantra “deliver-everything.” Postmates deliver almost everything, including alcoholic drinks, meals, and everything in between, from over 600,000 eateries across the US.
The company forecasts that the revenue will grow from $997 million in 2021 all the way to $1,496 million by the end of 2023. Plus, it had the highest sale share in Los Angeles, accounting for almost 29% of all sales.
DoorDash and Postmates have had the longest rivalry than any other competitor. To compete with UberEATS, DoorDash offered a hand to Postmates in 2018. However, Postmates turned down the offer, and in 2019, DoorDash had to buy Caviar from Square.
The company accepted Uber’s acquisition request for $2.6 billion and is giving tough competition to DoorDash.
Instacart
- Founded: 2012.
- Headquarters: San Francisco, California.
It is a digital platform that offers all; from grocery delivery to pick-up services to on-demand food and whatnot. With over 500,000 active shoppers, Instacart has strategic partnerships with some of the top leading grocers, such as Costco, Walmart, Whole Food Market, Kroger, etc.
In 2020 Instacart was valued at around $13.7 billion, which jumped to a whopping $39 billion as of March 2021?
It is one of the top grocers operating in the US and is in direct competition with DoorDash as it also offers food delivery services.
The platform caters to the need of 2.2 million customers and delivers in almost 5,500 cities in North America.
Also, the company aims to build an automated center for efficient completion of customers’ orders.
With 150 robots in each center will be able to handle almost 700 orders daily, making it one of the most innovative competitors to DoorDash.
FreshDirect
- Founded: 1999.
- Headquarters: New York City, NY.
It is an e-grocer and online food delivery platform. FreshDirect, in 2020, launched an express delivery service via which customers can have their products delivered within two hours.
With over 2500 employees, the company makes around $633 million in revenue. What’s more, FreshDirect was acquired by Centerbridge and Ahold Delhaize in 2021.
The owners intend to form MFCs (micro fulfillment centers) to cater to the needs of customers and process the orders more effectively. This strategic plan gives it an edge over DoorDash.
The Takeaway
Customers expect perfection and are always prone to finding anything to complain about at any time. DoorDash is available in Canada, Australia, and the US, while its rivals such as Waitr, Favor, and GrubHub are more regionally focused.
Always do your homework before opting for a meal delivery service; choose the one that fits your needs and takes care of your cravings.
