Though technically not customers of the service, they are separated from the other groups with their own app, making it easier to maintain a steady workforce.įurthermore, by employing their own drivers to make deliveries and not outsourcing from a third party, DoorDash can control revenue and earn higher profits. Clearly, DoorDash understands who will be most in-need (and, therefore, most receptive) to their services, which has helped them grow strategically.įinally, DoorDash also has its "Dashers" - individuals looking for steady yet flexible work. Their second audience is made up of Restaurants - and DoorDash often targets those that don’t have the means to deliver or don’t have adequate seating for dining-in. When a brand manager knows which audience they’re addressing, they can tailor their communication style, visuals, and tone to be able to speak to that particular group most effectively.įor DoorDash, its first group, Users, are people who want convenience and high-quality food from the comfort of their homes - and are willing to pay for it. But separating one’s audience into defined groups makes advertising and marketing communication easier and more effective. There are many ways that businesses can separate out their audience - by location, age, gender, interests, education, etc. Instead of lumping everyone into one category and treating them all the same, DoorDash separates its customers into two groups: Users and Restaurants. Though there are many reasons DoorDash has been successful, one main driver has been the clear audience segmentation. So, what drives their growth and success? Let’s explore. Though they were only five years old at the time, in 2018 DoorDash overtook food delivery giant Uber Eats - emerging as “the dark horse in the food delivery race.”Īnd by 2019, they beat out reigning champion GrubHub as well. With a focus on logistics and technology, DoorDash has been able to maintain continual growth and revenue.īut who have they pushed to the side in their mad dash to the top? And how? Strategically Overtaking the Competition We’re tackling some of the most difficult logistical challenges that come with on-demand delivery - both in engineering and in operations.” We help small businesses grow, we give underemployed people meaningful work, and we offer affordable convenience to consumers. “We are a logistics company more so than a food company. While they started small and local, with most customers being fellow Stanford students, by summer 2013 they received $120,000 in seed money from Y Combinator, and DoorDash was officially born.įrom then on out, the founders stood by their mission to “build the local, on-demand Fedex”, further stating: Using technology for delivery was still a relatively new venture in the early 2010s, and the founders saw an opportunity to enter the market with their website. And with its impressive handling of the global pandemic in 2020, it’s clear that DoorDash’s success will only continue.īut, how did a student-founded delivery service from Palo Alto really become the largest on-demand food delivery brand in the US in under six years? And how is the brand performing in 2022?įounded by Stanford University students in 2012, four friends - Zu, Tang, Fang, and Moore - were testing out a mobile app for small business owners when a local macaroon store owner asked for their help. So to make it big and beat out the competition, you have to be willing to make bold, calculated moves.īy March 2019, a new kid on the block by the name of DoorDash overtook seasoned competitors to earn the title of most consumer sales - boasting 27.6% of the on-demand delivery market.įrom its impressive audience segmentation to its invaluable brand insights app Drive, DoorDash has been efficiently making its way to the top for the past few years. When it comes to having food delivered to your doorstep in the US, you’re definitely not lacking in choices.įrom GrubHub to Uber Eats, the food delivery industry is a somewhat crowded marketplace.
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