Demand for online food delivery is on the rise. Trends show that the next generation customers prefer to have a dine-in rather than dine-out. Modern apps like DoorDash make life simpler for such customers. DoorDash is a technology company that aims at connecting people to the best in their respective cities. It started with an online food delivery app facilitating door-to-door delivery. DoorDash, founded in 2013 and based in SanFrancisco is an online food delivery software that acts as a bridge between the customers and the restaurants. It calls its delivery riders Dashers. Even during the Covid-19 pandemic times, DoorDash proved its worth with its relief programs, saving restaurants more than $120 million. DoorDash has a very strong customer base as almost 65% of its customers have tried new restaurants just because they are listed on the DoorDash app.
How does DoorDash work?
To build an app like DoorDash we first need to understand its business model.
DoorDash Business Model
DoorDash uses a Y-shaped business model which is beneficial to both customers and restaurants. It facilitates customers with a large variety of restaurants to choose from, and restaurants get to build a strong customer base. It also creates employment opportunities by hiring a large number of delivery personals.
DoorDash works on the same principle as most online food delivery software.
Finalize order
Customers can choose from a variety of restaurants shown in the app. They can build their order by selecting food items from restaurants in their vicinity.
Payment
Once the customer has finalized their order, they can proceed further by making payments for their order through various methods available.
Tracking your order
Once the order is successfully placed DoorDash informs the respective restaurant regarding the order, the user can view step by step process by keeping check of the status updates in real-time through a live location tracker. Once the food is prepared the delivery rider called dasher picks up the order and directs towards the desired destination.
Delivery
The dashers ensure timely delivery of the food ordered, and once the food is delivered it is up to the customer to tip the delivery rider or not. DoorDash has no part in the tipping process.
DoorDash Revenue Model
Understanding a revenue model is of utmost importance for any business entrepreneur. DoorDash makes money in the following ways:
Delivery Fees
DoorDash has its own delivery fleet for performing food deliveries, they are called Dashers. Delivery charges differ with the distance, but generally, the fee charged by DoorDash is from 5% to 8% per order.
Advertisements of restaurants on the App:
DoorDash allows restaurants to post advertisements and earns commission from the same. Restaurants that want to be ranked on top pay a higher amount.
Commission from restaurants:
Every order placed has a fixed amount of commission that is transferred to DoorDash by the restaurant, usually, it is 20%.
DoorDash basically comprises 3 segments
DoorDash comprises of 3 Customer Segments
DoorDash acts as a mediator between restaurants and customers. Apart from that, it is an excellent employment source for riders.
- Customers
- Restaurants
- Dashers
Features of DoorDash
A few salient features of DoorDash that make it stand out from the lot are as follows:
Scheduling orders
Planning orders prior is a very beneficial feature. It helps save time during peak hours, for instance, festival seasons can be a lot more fun if the overhead and orders can be subsided, a little.
Dual rating feature
DoorDash provides a dual rating feature, one for the food from the restaurant and the other for the dasher. This helps in providing better service and make improvements on the required front.
Intelligent suggestions
Customers like it when they don’t have to waste a lot of time browsing through the list of food items to select the desired meal. DoorDash uses AI to provide useful meal suggestions to customers as per their likings and interest, and it never goes unappreciated.
Live Tracking
In today’s digital world, live tracking has become the restaurant industry’s latest foray into high-profile technology. GPS tracking gives customers a sense of control over their meal delivery. It also helps manage deliveries in a better manner and rendering the process more efficient.
Steps to building an online food delivery app like DoorDash
If you are choosing to start a food delivery business, DoorDash is an ideal on-demand food delivery service to look up to. A few steps you need to take to set up an online food delivery software are as follows.
Choosing the right business model
The choice of your business model defines your approach towards your business. It gives a clear insight into your business management. There are 3 business models available in the market.
The Order Only Model
This marketplace solution acts as an integrator between various restaurants and customers. The customer has a large variety of restaurants and meals to choose from. In this business model, the restaurant owns its delivery fleet.
The Order & Delivery Model
This model is an upgrade to the previous model. The order and delivery model gives the restaurant choice to use its own delivery fleet or the one provided by the marketplace.
The Fully Integrated Model
This meal-delivery model is chosen mainly by the food delivery startups. It is very different from the above two models. The meal delivery businesses using this model deals with everything right from taking orders to preparing meals and finally delivering them to the customer’s doorstep.
Choosing the target audience for your food delivery app
The target audience for an online food delivery system will be a deciding factor for the growth of the business. For instance, if your business focuses on health-conscious youth, you can partner with dietitians and gyms to enhance your customer base.
Build an online food delivery platform
Building an online food delivery system from scratch can be a tedious task. To make impactful software it’s better to go for a white-label marketplace solution. It provides you with all the details you require to get aligned with the current trends in the food industry.
Finding well-known restaurants and food producers to partner with
Having the topmost restaurants on your list is very important to come up as a brand in the food industry. Restaurants with a strong customer base help you get on board with the top-line competitors in the field.
Hiring skilled staff for smooth functioning of the business
Skilled chefs or delivery personals can help maintain good feedback from the customers. After all, it’s good food and timely delivery that make an online food delivery app a success.
Review and rating
Keep in consideration the reviews and ratings provided by customers are of utmost importance. Along with that, continuing to improve as per feedback is equally necessary. It is easy to get top stars for a startup, but to maintain that position can be tricky. Keeping your customers happy is the solution.
The after-sale support
The after-sale service provided by the solution provider is crucial. The solution provider is expected to provide a free demo and training of the product they are selling. The website should cover all information about the solution provider, their products, and services. These details can prove to be helpful in the long run.
How an online food delivery software could help you launch your food delivery platform?
An online food delivery software can come in easy when you are planning to launch your food delivery business. A few benefits of using online food delivery software are as follows:
Easy to customize and brand
Online food delivery software is highly customizable. They allow you to have the desired look and feel of the app, still providing a functioning as per the market and the needs of the customer. Such software which allows rebranding in order to provide the best results in your particular niche is called White label solutions.
Reduced Risk
A food delivery software or a white label solution to build an app like DoorDash allows you to mitigate the risks associated with launching the business. The third party shares the risk when the software is launched or whenever a failure is incurred.
Satiated customers
A fully satisfied customer is the key to success for any business. An online food delivery software is built in alignment with the market needs and ongoing trends. So a business that is set up using the software is bound to reach heights of success as it will be in accordance with the contemporary customer’s requirements.
Conclusion
In the above article, we have summed up everything required to build an app like DoorDash, though it is impossible to fit it in all the minute details. Covid-19 Pandemic has changed the mindset of the customer. Today it is much more preferable to stay safe indoors than to risk catching a virus by dining out. As technology is advancing with every passing day, building a food delivery app from scratch might never reach the desired level. Going for a white label solution to build an app like DoorDash will help your business reach heights in considerably less time. Yo!Yumm is a highly customizable white label solution, integrated with all the features required for your online food delivery app to be in alignment with the current market trends.
