DoorDash pushes to become a "delivery-everything" platform ahead of its IPO
Revenge is a dish best served cold... So is delivery domination. DoorDash is in the enviable pandemic position of being the #1 restaurant delivery platform in America. In the mafia-style food delivery wars, DoorDash has protected its leading market share against promo-slinging rivals Grubhub and Uber Eats. Now Don DoorDash is coming for Instacart and Amazon's territory.
- DoorDash is launching grocery delivery, starting with chains like Smart & Final in California. It's offering free delivery to DashPass subscribers.
- Grocery, but make it takeout: DoorDash promises to deliver groceries in less than an hour. That gives it an edge over Instacart and Don Bezo's Amazon Fresh, which typically use scheduled delivery windows.
It's all about the backend, baby... Sometimes the things you don't see are the most powerful. Shopify's platform powers the ecommerce of over 1M businesses, from Kylie Cosmetics to the local taco joint — but consumers don't see Shopify. DoorDash has a similar "hidden" platform:
- DoorDash Drive: DoorDash sells its backend delivery platform to grocery chains like Walmart and Wegmans, handling their last-mile delivery.
- Like the Shopify of e-grocery, DoorDash Drive powers chain stores' delivery services, letting them brand them as their own. Now, DoorDash is using the same platform to bring grocery delivery to its own app.
DoorDash wants to be an all-in-one delivery platform... It dominates restaurants, it's making big moves in grocery, and it added convenience stores and pharmacies this year. In addition to selling direct-to-consumer, it's selling to other businesses with DoorDash Drive. This service could be a major growth driver as stores expand delivery in the corona-conomy. DoorDash's "delivery everything" play puts it in a strong position as it gears up to go public this winter — It raised $400M in June at a meaty $16B valuation.