Startup story of Door Dash

Delivering The Necessities And Cravings: DoorDash It is!

DoorDash operates in many cities across the United States and other countries, making it a convenient platform for individuals and families to enjoy restaurant-quality meals in the comfort of their own homes or offices. It has become one of the leading food delivery services in the industry, offering a seamless and user-friendly experience for both customers and restaurant partners.

What Does DoorDash Do?

DoorDash is a food delivery and logistics platform that connects customers with a wide range of restaurants and food establishments, allowing them to order meals and have them delivered to their doorstep. Here’s an overview of what DoorDash does:

1. Food Delivery

DoorDash enables users to browse menus and place orders from local restaurants through its mobile app or website. DoorDash’s network of delivery drivers (often referred to as “Dashers”) pick up the orders and deliver them to the customer’s specified location.

2. Restaurant Partnerships

 DoorDash partners with a vast network of restaurants, ranging from small local eateries to well-known national chains. This extensive selection gives customers a wide range of dining options.

3. Grocery and Convenience Store Delivery

DoorDash has expanded its services to include grocery and convenience store deliveries. Users can order groceries, household essentials, and other products from participating stores and have them delivered quickly.

4. Alcohol Delivery

 In some regions, DoorDash also offers alcohol delivery, allowing customers to order beer, wine, and spirits from local liquor stores for delivery to their homes.

5. DashPass

DashPass is a subscription service offered by DoorDash that provides members with benefits such as reduced delivery fees and exclusive promotions.

6. Restaurant Pickup

 Customers have the option to place orders for pickup from restaurants if they prefer to collect their food themselves.

Founders And Team

DoorDash, a food delivery and logistics company, was founded by four Stanford students:

Tony Xu: Tony Xu is one of the co-founders and serves as the CEO of DoorDash. He played a significant role in the company’s growth and strategy.

Andy Fang: Andy Fang is another co-founder and the Chief Technical Officer (CTO) of DoorDash. He is responsible for the technical aspects of the platform, including its app and software development.

Stanley Tang: Stanley Tang is a co-founder of DoorDash and initially worked as the company’s Chief Product Officer (CPO). He focused on product development and user experience.

Evan Moore: Evan Moore is also a co-founder and worked as the Chief Operating Officer (COO) at DoorDash. His role involved overseeing the company’s operations and logistics.

Start-Up Story

DoorDash was born out of the founders’ shared frustration with the limited dining options available for busy students and the inconvenience of traditional food delivery services. They envisioned a solution that would bring the diverse flavors of the city directly to people’s doorsteps.

In the early days, DoorDash faced numerous challenges, including logistical hurdles and competition from established players in the industry. However, the founders remained resilient, constantly refining their business model and expanding their network of restaurant partners.

DoorDash experienced significant growth and recognition when it was accepted into the Y Combinator accelerator program in 2013. This allowed the company to access crucial resources and mentorship to scale its operations.

DoorDash has also been involved in philanthropic efforts, including providing meals to healthcare workers during the pandemic and supporting local communities. DoorDash’s brand story is one of perseverance, innovation, and a commitment to making life more convenient for its customers. From its humble beginnings on a college campus to becoming a publicly traded company, DoorDash has transformed the way people access their favorite foods and essential goods, all while supporting local businesses and communities.

Business And Revenue Model

DoorDash primarily operates on a platform-based business model in the food delivery and logistics industry.

1. Food Delivery And Logistics

DoorDash connects with customers with local restaurants and offers delivery services. Customers can place orders through the DoorDash app or website. The delivery drivers, called “Dashers”, fulfil these orders by delivering on location.

2. Marketplace Commission Fees

DoorDash also generates its revenue by charging restaurants a commission fee for each order. The fee generally ranges from a percentage of the order total and can also charge additional charges.

3. Subscription Services

“DashPass” is a special subscription service which provides members with benefits like free delivery, reduced service fees, and promotions. Customers pay a monthly or annual fees for access.

4. Merchant Services

DoorDash offers various tools and services to restaurants and merchants to manage their orders, payments, and delivery logistics. These services may come with associated fees.


Series E Funding (March 2018): DoorDash raised $535 million in a Series E funding round led by SoftBank Group’s Vision Fund. This investment marked a significant milestone in the company’s growth.

Series F Funding (August 2018): Just a few months later, DoorDash announced another funding round, raising $250 million in Series F funding. This round was led by Coatue Management.

IPO (December 2020): DoorDash went public on the New York Stock Exchange (NYSE) on December 9, 2020. The initial public offering (IPO) raised approximately $3.4 billion, making it one of the largest tech IPOs of the year. The company’s stock ticker symbol is “DASH.”

In conclusion, Doordash has undeniably revolutionized the way we think about food delivery and convenience in the digital age. From its humble beginnings to becoming a household name, Doordash’s commitment to innovation and customer satisfaction is evident. As it continues to expand its reach and adapt to changing consumer preferences, it is poised to remain a dominant player in the food delivery industry. 

With its user-friendly app, vast restaurant selection, and a network of dedicated drivers, Doordash has not only made our lives more convenient but has also opened up new opportunities for countless restaurants and gig workers alike. As we move forward, it’s safe to say that Doordash will continue to shape the future of food delivery and continue to be a go-to option for hungry customers across the globe.


get daily update to join our Magazine