DoorDash Competitors That Are Worth Your Attention

DoorDash is an online food delivery company headquartered in San Francisco, CA. Did you know that it covers 56% of the food delivery industry, making it the largest such company in the US? Its shares in the convenience delivery sector are 60%, which again, is pretty considerable. DoorDash delivers almost all kinds of breakfast, lunch, and dinner popular in the country. It is a publicly-traded company active throughout the US, Canada, and Australia.

NameDoorDash
Founded2013
HeadquartersSan Francisco, CA, US
SIC Code7372
StatusPublic, Independent Company of NYSE
Industry SectorOnline Food Ordering
Employees6000
Trading SymbolNYSE: DASH

Four Stanford University students, Tony Xu, Stanley Tang, Andy Fang, and Evan Moore, established DoorDash’s operations in 2013. The domain name of their website was PaloAltoDelivery.com, and they had only one client, a macaroon store owner in Palo Alto. Today, the company has close to a million deliverers and more than 20 million customers, which help generate revenue of $4.8 billion.

DoorDash’s Similar Companies:

Uber Eats, HelloFresh, GrubHub, Postmates.

Who is DoorDash’s Biggest Competitor?

The biggest competitor of DoorDash is Uber Eats. Both their services are very similar, and so are their individual revenues for 2021; a neck and neck competition. Uber Eats was founded in 2014 by Travis Kalanick and Garrett Camp. Based in San Francisco, CA, it is currently operative in 45 different countries. In short, almost wherever Uber, the internationally acclaimed transportation service, is present, so is Uber Eats.

How DoorDash makes Money

DoorDash is a food delivery service that generates a profit out of making timely deliveries from the restaurant to the consumer. The company charges both the restaurant and the consumer for this. Depending on the distance between the restaurant and the customer, the consumer-side charges may range from $5 to $8. A 20% commission is generated from the restaurant for DoorDash.

Online Food Ordering / Delivery

Food delivery is a very old and vast industry. Back in the day, you needed to phone the restaurant to order food. Even before that, you needed to physically visit the outlet to place the order, and your food would be delivered to your house only if your order was large. Today, everything happens online, and every order, no matter how large or small, will be delivered to your doorstep within minutes.

Uber Eats

Uber was founded in 2009, and a mere six years later, Uber Eats was launched. It was an amazing business strategy, since Uber already had an established presence in many parts of the world by then, including another important factor required for food delivery – a fleet of vehicles.

The deliverers usually travel from the restaurant to the house in a car, scooter, or bike. A few of those walks toward the destination only if it is close by since Uber Eats always ensures that the food is delivered hot. The company generates revenue of $4.8 billion between its estimated 10,000 employees, excluding the deliverers.

Online Food Ordering / Delivery

Customers can use the Uber Eats website to order food or download their official app which is compatible with Android and iOS. However, you will have to complete the free registration with Uber first, since your payments on Uber Eats will be directly charged to the card that you registered with.

Their delivery charges can go as low as $2, and they rise with the increasing distance between the locations. They have levied a higher commission (30%) to restaurants than DoorDash. However, their pick-up and dine-in alternatives for customers make Uber Eats quite unique in the industry. You can pick your order up at a pre-arranged location. Alternatively, if you are dining out at a restaurant during peak hours, then you may place your order beforehand via Uber Eats.

HelloFresh

Unlike the other competitors in the list, HelloFresh is a meal-kit provider that prepares the ingredients at the outlet and delivers those to the customers. You then have to cook the meal as per the recipe given. The company was founded in 2011 by Dominik Richter, Thomas Griesel, and Jessica Nilsson. It is based in Berlin, Germany, but is far more popular in the US.

Meal Kit / Food Delivery

Why order from a restaurant when you can get restaurant-like food at a much better price! HelloFresh prepares its ingredients in the perfect proportion, and their recipes, if followed correctly, will help you cook a delicious meal in about 30 minutes. It is a subscription-based service that provides pre-proportioned meals on a weekly basis. The company generates revenue of around $4.24 billion.

GrubHub

GrubHub is a food delivery service that can be availed both online and via phone. Founded in 2004 by Matt Maloney and Mike Evans, the company is headquartered in Chicago, IL. It was started with an aim to save the environment by reducing the use of paper menus and opting for an online menu option instead. Its services are currently active throughout the US, and it has a revenue of around $1.8 billion.

Online Food Ordering

GrubHub’s food delivery system is simple. Open their website or app, type in the name of the restaurant or cuisine in the search box, pick from a whole host of local options that turn up, and confirm your order. The rest will be taken care of by their customer support team to ensure that your food is delivered securely and in good time.

Presently, GrubHub has nearly 20 million users and counting, along with fixed deals with several restaurants in over 3200 cities. It was recently acquired by Just Eat Takeaway. Did you know that Uber was considering approaching the company with an offer when Just Eat Takeaway sealed the deal?

Postmates

Postmates is owned by Uber, still, it competes with Uber Eats since it offers similar services. Postmates delivers not only restaurant food, but also various products from local retailers and grocers. Bastian Lehmann, Sam Street, and Sean Plaice launched the company in 2011. Its services may be available in only selected states in the country, but it is functional in over 2900 cities.

Online Food Ordering

Postmates has an official website, but a major part of its $909 million revenue comes from its mobile phone app. The company had a host of investors early on, so it didn’t struggle to establish its presence much. And its business rose exponentially during the coronavirus pandemic, what with its safe, no-contact delivery options. It was during that time (mid-2020) that Postmates was acquired by Uber.

Conclusion:

Top 4 DoorDash Competitors: Uber Eats, HelloFresh, GrubHub, Postmates. Including DoorDash, they generate total revenue of $16.55 billion together. Their cumulative number of employees amounts to 30,510. DoorDash ranks right at the top of the list with its $4.8 billion revenue and 56% market share.

Competitor’s Stats:

NameFoundedHeadquartersEmployees
Uber Eats2014San Francisco, CA, US10,000
HelloFresh2011Berlin, Germany6400
GrubHub2004Chicago, IL, US2780
Postmates2011San Francisco, CA, US5330

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