24 Jan 2020
Updated on October 28th, 2021
HOW DOORDASH IS EDGING OUT THE FOOD DELIVERY SCUFFLE? (Updated)
DoorDash and its subsidiaries earned 37% of US meal delivery sales in December 2019!
The stats cuts the clear picture above, however, it is a surprising fact to know that the food delivery industry is growing at a massive rate across the world!
And the sales chart for this very industry reached 41% in 2019 itself, where the biggest slice of the cookie was eaten by DoorDash only. Wait for another lucrative bit from the entrepreneurial angle!
According to Statista, the revenue for the food delivery industry is expected to show an annual growth rate (CAGR 2021-2025) of 9.89%. This is expected to result in a projected market volume of US$441,622m by 2025!
The stats mentioned above are good enough reasons to force anyone to explore the food delivery domain!
DoorDash surpassed Grubhub’s sales and won the market-share at the best.
Let’s take a look at what all has made DoorDash come out as a winner!
It worked upon suburbs
The leading food delivery businesses usually eye on the cities, but DoorDash decided to keep their focus in the suburbs. This has created a nationwide spark, where users are grabbing the exclusive deals and getting the ingredients to stay atop.
Tony Xu, DoorDash’s chief executive officer mentioned, “While our competitors focus on the cities, we focused on the suburbs, that’s how we were able to become the market leader.”
But this is not just one strategy, there’s more to this! Let’s learn about them:
A war chest
The competitors & venture capitalists, get indulged in a war chest of around $2 billion. SoftBank Group Corp., the Japanese conglomerate, who invested in Silicon Valley, took an interest in DoorDash in 2019 and elevated the revenue of the unprofitable company to $12.6 billion.
Market share prediction
No doubt the sales figure across the food delivery industry is growing, but the growth of DoorDash is incredibly mind-blowing.
In the year 2019 December, DoorDash received an unparalleled 97% growth. And the market speculation even then suggested that the company would make it to the direct listing in 2020!
What does the future hold?
The future for DoorDash is undoubtedly bright and sparkling. Despite struggling in the initial years to find investors, by 2019, it has made an impressionable and fantastic business presence.
Now, DoorDash has spent $410 million in August for Caviar, a food delivery app owned by Square Inc. Also, Xu, the CEO stated that “We have a lot of money in the bank, we are in no rush to spend it all.”
How this food delivery app is taking the world by storm!
– IBM recently delivered hundreds of patents to DoorDash in a latest big start-up transaction!
– It is about to open an engineering office in Pittsburgh. They are expanding and it’s big!
– The DoorDash stock gained over 10% since last week, significantly outperforming S and P!
This delivery platform has come a long way in a very short span of time. This is not only awe-inspiring but establishes the fact that it is possible for food entrepreneurs to soar high and become highly successful!!
A greater number of restaurants are obviously going to fill the delivery partnership, allowing an increasing number of foodies to get indulged with the food delivery app development services. DorDash, too, will see growth in coming years as well – it’s inevitable!
On the other hand, if you are planning to give a start to your food delivery business, but unsure of its start, then without wasting any moment you must reach out to the team of experts at Techugo.
Techugo is a chosen name for the best food delivery app development services, and to get a FREE consultation for your food business app concept, reach out to the Techugo team now…