DoorDash is gradually undergoing a process of functional transformation from a digital restaurant food delivery platform into something more than a super app, expanding its retail offerings.
Last Thursday, February 15, Tony Xu, CEO of the mentioned company, which is based in San Francisco, during a telephone conversation dedicated to the brand’s financial results in the fourth quarter of last year and for the whole of 2023, noted the high level of intensity of the aggregator’s business growth.
The head of the firm said that three years ago when the delivery service was launched, about two dozen retailers interacted with DoorDash. Currently, the corresponding figure is estimated at hundreds of thousands of stores.
DoorDash positions its digital platform not only as a kind of restaurant marketplace. The company also seeks to strengthen its market position in the area of more universal service, which provides useful solutions for small merchants of different categories.
In a letter to shareholders, Tony Xu and the financial director of the firm, Ravi Inukonda, drew attention to the fact that currently, small businesses face such difficulties in their activities as the problem of scalability, lack of efficiency, and various kinds of troubles related to data. They noted that large retailers are in a better position in this context. Tony Xu and Ravi Inukonda also stated that DoorDash can help small businesses operate with more simplicity, greater efficiency, and greater scale.
It is worth noting that in recent months, the level of efficiency of the company headed by Mr. Xu has shown a downward trend. In terms of metrics such as usage, downloads, and channel coverage, DoorDash was the leader of the relevant business segment in the United States in November. Currently, the company has lost several positions in this conditional rating. DoorDash has been outperformed by its competitors, including Instacart and Uber Eats.
At the same time, the company continues to be popular in the United States. In June, 77% of the aggregator’s users stated that they were customers of this brand. Moreover, in the fourth quarter of 2023, the company increased the total volume of orders to 574 million. This indicator increased by 23% year-on-year. The total value of orders for the fourth quarter of last year was $17.6 billion. This indicator showed an increase of 22% compared to the same period in 2022.
DoorDash offers user-friendly solutions. Interaction with the company is not what can be described as a difficult task that requires special efforts. In open Internet sources, anyone can find out how to pay cash on DoorDash. The company is considering the possibility of driving the adoption of its DashPass and Wolt+ subscription programs. Tony Xu says that there are currently 100 possible use cases per month for each consumer.
