Recognizing that the DashPass subscription growth strategy was aimed at organic channels rather than developing partnerships, DoorDash has changed its position on this issue.
It is impossible to predict how global in terms of practical consequences this change in position will become, but it is already known that the aggregator has begun to actively cooperate with the Canadian division of Amazon to create a free annual subscription to DashPass for Prime users in this country. DoorDash, as part of the new consumer offer, plans to introduce free shipping and a refund of the loan in the case of a pickup order.
DoorDash Canada CEO Shilpa Arora stated that the company is always looking for opportunities to introduce Canadians to the best of their neighborhood. She also stated that the new offer will realize the incredible benefits of DashPass for Prime users in Canada.
In this case, the aggregator, in a certain sense, followed the path of its competitor Grubhub, which in July last year launched an almost identical project of cooperation with Amazon in the United States. Last Monday, June 5, the company announced the continuation of the partnership program with the e-commerce giant. In cooperation with Amazon, Grubhub offers a free two-year subscription.
In early 2023, Prabir Adarkar, Chief Financial Officer of DoorDash, stated that DashPass’s growth promotion strategy does not envisage cooperation in favor of channels that, according to the firm, guarantee more reliable long-term development. Then he also said that the company adheres to the point of view that partnership is not the basis for growth.
Adarkar stressed that many competitors in this context follow the opposite strategy, but DashPass is developing due to its channels and traditional channels of marketing efficiency. Against the background of these statements, DoorDash Canada’s decision to cooperate with Amazon can be interpreted as evidence of a radical change in position.
Grubhub, which Adarkar most likely hinted at in his statements, has established partnerships not only with Amazon Prime but also with Bank of America, offering cardholders an annual subscription.
DoorDash is changing its strategy. There may be two main reasons for this decision. In the relevant context, the assumption that there has been a significant slowdown in the growth rate of the number of DashPass subscribers has a right to exist. Also, the reason for the revision of the position could be the impressive results of competitors who adhere to a different point of view.
In the USA, the process of implementing aggregators continues to show growth. In the period from April 2022 to February 2023, the share of restaurant clients who used the services of aggregators increased from 37% to 40%.
DoorDash continues to be the No. 1 food delivery app. The company is ahead of its competitors in terms of such indicators as channel coverage, average monthly number of users, number of sessions per client, and average session duration.
As we have reported earlier, DoorDash Touts Subscription Savings as Aggregators Compete for Digital Loyalty.