How Door Dash business model work, its revenue generation?

Let’s decode the concept of the door dash store model its salient features its future and most importantly its success. Keep reading the article to know everything about the door dash business model.

What is the Dashdoor model?

Founded in the year 2013, the doordash model has gained a lot of hype in the market, in recent times specifically in the USA. Still, it is a matter of interest for investors. The store is basically an on-demand food delivery service. It acts as a relay Centre between the buyer and the service provider specifically for those who want their product from the local market at their doorstep. Doordash is a  Y combinator-backed company. Since its inception, it has raised approximately 2.5 billion dollars. Curious souls here’s an overview of the dashed or business model its functioning revenue generation and profits rate.

Here are some salient features of the door Dash on-demand business model

  • The company is a Y structure-backed business model. It works basically by the aggregation of users, eateries, and the dashers.
  • The company generates its revenue by charging a particular commission from the businesses.
  • Doordash is launched in the year 2013.
  • It has raised approximately 2.5 billion dollars from its inception
  • It is active in around 4000 cities across America and Canada.

How Doordash work?

Let us start with the functioning of the door dash business model

Dash store business model works almost on the same lines as other logistics based on-demand startup models do

Choose and place an order

Having a large variety of food over different restaurants in the saturation of restaurants users have a lot of options when it comes to food. The first step in the working of the dash store model is choosing your favorite food. Select your favorite food by pressing a button displayed on the show up of the restaurant. I want to go user can place their order by selecting food items from their favorite restaurant.


In the second place after choosing an appropriate order user make the required transaction. When the user is done with the transaction process order is forwarded to the respective restaurant for preparation.

Order tracking

As soon as to order is placed and the order gets prepared and packed. The delivery agent pickup the order and delivers it to the customer’s decided destination at his doorstep. Users can track the delivery agent and get updates.

Delivery of order

The delivery agent or the Dasher. He is the person who is responsible for delivering the order to the customer in the shortest possible time. The company pays the dasher. Meanwhile, the delivery fee for delivery goes to the company. Dashers usually get tips from users which he can keep.

The business model of Door dash

For every entrepreneur mind, it’s very important to know how the platform makes money? its mode of revenue generation, the profit and loss ratio. Let’s give dive into it in a brief.

As we all know the door dash is a medium that connects the merchant and the buyer. When the customer place order in the online Marketplace, the order is dispatched. Door dash charges a commission percentage out of each in every single order delivered. the percentage of commission changes over time but usually it is 20% of the payment.

In the second place, it also charged the service providers for advertisement and marketing. Every restaurant wants to be on the top list compared to its competitor. So to pop up in advanced search doordash serve them and charges a particular Commission. As in the above-discussed functioning of the doordash model, we come to know that there are dashers who are hired so to deliver the package to the customer. Doordash pays them depending on the distance traveled by the dasher and gets a proportion from there as well.

Future of Door dash business model

Doordash seems to be evolving further due to the increased demand for delivering food at the customers’ doorstep within the shortest possible time. It is probably one of the most highlighted and the biggest names. The trend also shows that the food delivery business is facing competition and doordash is unhesitantly a top spot in the food delivery ecosystem in the last seven years from its journey. So it is obvious that doordash will give a tough competition in a long run to others in the on-demand industry.

If you’ve read all the above articles then I must assume that you are looking out to create something new like doordash for food delivery. And get the best, easily understandable way for your food delivery business. You will find a way.

Read More: How Amazon Improves And Enhance Last Mile Delivery Model