Question

In: Economics

Looking DoorDash's business model hypothesis. Do you think DoorDash is in search or executing stage?

Looking DoorDash's business model hypothesis. Do you think DoorDash is in search or executing stage?

Solutions

Expert Solution

Doordash began with an intention of delivering logistics to customers has become a renowned food delivery market brand. Being founded in 2013 , it has earned a total revenue valuation of $ 12.6 billion. There a number of features that add to this valuation which are stated below:

1. The app uses artificial intelligence to provide a suggestion list to customers.

2. Top menu lists is another feature which provides a full on customer experience to all those interested.

3. Dual rating is another such feature increasing the valuation which includes rating of food and delivering quality and person delivering the food at the doorstep.

4. Live tracking of the package is another outstanding feature.

All these features make door dash to stand out among all other food delivery brands, increasing revenue collection in turn.

The buisness model is in Y structure focusing on 3 segments which are :

  • FOR USERS : In this segment the buisness model provides a wide choice of food varieties and resturants all over the city. In addition to 24*7 service is another boon for the customers who can order anytime they are in need of , with this there are even more features which are already added above.
  • FOR RESTURANTS : In this segment it focuses on providing an extended customer base to the restuarant owners. In addition to this it even focuses on providing their own delivery guy for the delivery purposes and helps in increasing branding and marketing for the resturant owners.
  • FOR DASHERS: In this segment the dashers section is under focus. Dashers are the drivers of door dash who deliver the food packages to the customers whenever demanded. This acts as a source of income for them both by the salary they earn and the tip they receive from customers in this complete process.

Not only this but door dash has used social media platforms quite effectively for advertising and has used channels like mails to inform about discounts, offers to customers . With this the enhanced customer care services add spark to the work cadre.

Considering all the above points which act both as the reasons and even the justification for Door dash remaining to be in the execution phase over the search phase. Being in the execution phase it is able to attract high levels of customers thus high amounts of revenue .


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