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20 Things You Didn't Know About DoorDash

DoorDash is a courier company that offers service on demand. It's a fairly new company, so if you haven't heard of it, don't feel bad, but it's something that you may find interesting and even useful. If you are familiar with DoorDash, then we have some information about it that you might like to hear about. Here are 20 things that you didn't know about DoorDash.

1. DoorDash delivers food from restaurants

If you're in the mood for a particular dish offered at a local restaurant, but can't get away to pick it up, then DoorDash is a solution that can help you. They deliver menu items directly to your door so you can order your favorite dish and choose the time that you want it to be delivered. It couldn't be easier. All you have to do is make sure that the restaurant you choose is one of the businesses that is participating with Door Dash.

2. DoorDash has a long list of competitors

One of the latest trends over the past decade in courier services is within the food industry. Some years back, you could easily get pizza delivered, but not all other restaurants offered this dine at home service. Most of them required their customers to call in their to-go orders and then pick them up at the restaurant. Some offered delivery services, but there were so many who didn't that it made room for a new industry in delivery services. Soon, companies like, SkipTheDishes, Caviar, Tapingo and Uber Eats, began offering food delivery services. These are the direct competitors of DoorDash.

3. The company was founded by a group of college students

DoorDash, Inc. was founded by three Stanford University college students in 2013. Andy Fang, Tony Xu and Stanley Tang were the co-founders. The company has only been around for 5 years, but in the time that it's been in existence it has grown tremendously. This just goes to show you how much you can accomplish when somebody has a great idea, a couple of friends to partner with and the willingness to put forth the effort to make it all come together.

4. DoorDash is considered a technology company

This company falls under a few different categories and technology is certainly one of them. The reason why they qualify as tech is because they use a logistics service to offer food delivery from restaurants in a service that is one-demand. In order to make their system work, the trio of founders had to develop a system for linking everything together to create a convenient ordering system along with enough highly responsive drivers for each area that they serve to make it work seamlessly.

5. DoorDash has expanded rapidly

DoorDash first started in the city of Palo Alto. Since its initial launch in 2013, it has grown to serve on-demand food delivery services for over 600 different cities throughout North America. It has also expanded to fifty-six markets. The company has done very well

6. DoorDash has significant financial backing

Startups often require a large amount of startup capital just to get the infrastructure set in place. This is especially true when logistics and new technology are needed to make the operation work. DoorDash is one of those companies that started at just the right time to get in on the new and growing industry of on-demand food delivery services that is available online. Investors saw the potential for a return on their investment and prominent financial companies including SV Angel, Sequoia Capital, SoftBank, Keliner Perkins, Caufield & Byers, Khosla Ventures and GIC joined forces to supply the startup with several rounds of financing that totaled over $700 million.

7. The company has reached more than a billion

DoorDash has recently completed another round of funding and a new valuation of the company was estimated for 2018. It has reached the value of an incredible $1.4 billion. This is pretty good for a new business that began as an idea between three friends who were college mates and decided to go into business for themselves before they even completed their degrees.

8. DoorDash was sued by In-N-Out Burger

DoorDash was hit with a lawsuit in November of 2015. A fast food restaurant called In-N-Out Burger claimed that the company had infringed on their trademark. This wasn't the only allegation that they had made against DoorDash. The suit also listed unfair competition as one of the chief complaints.

9. Burger Antics also joined a class action suit against DoorDash.

This restaurant filed a suit against DoorDash citing that they didn't authorize the company to post copies of its menu online, nor  did they give them permission to deliver their food to customers. The owners were initially not aware that DoorDash was performing these actions until customers who were unhappy with the service complained to them about it. This is when they took legal action against them. Customers claimed that the food was cold when they received it. The owners of Burger Antics have made it clear that they do not deliver food to customers from their menu, nor do they want to have anyone else deliver it.

10. DoorDash and GrubHub lost a lawsuit that cost them millions

We discussed just two of the individual lawsuits which were filed against DoorDash by individual restaurants. They were actually hit by a class-action suit that involved multiple participants claiming that DoorDash didn't obtain permission from them to post their menus and begin delivering food from their restaurants for paying customers. The courts ruled in favor of the petitioners and not only DoorDash, but also, their competitor GrubHub were named in the lawsuit and the two settled in the deal for an amount of $5 million. They have since then changed their practices and now secure permission from all restaurants prior to posting their menus on the DoorDash and GrubHub websites and delivering food on their behalf.

11. DoorDash partnered with Jack in the Box

DoorDash began running their operation legally after they were forced to settle for millions in a class-action lawsuit. They established a contract and partnership with the Jack in the Box fast-food restaurant chain to post their menus and deliver food to customers who desired to have this delivery service. The deal was made in March of 2017. Adopting this new policy of only delivering from restaurants which grant permission will protect them from further litigation in the future.

12. They partnered with Walmart in a new venture

DoorDash formed a partnership with the Walmart based in Atlanta, Georgia in April of 2018. This signaled a change in the type of courier service that the company is offering for its customers. While they still provide food delivery services, the deal with Walmart offers at-home grocery delivery. Now if you want to have a special courier pick up your grocery items and bring them to your doorstep, you can pay for this service if you live in the Atlanta area and shop at Walmart.

13. Investor confidence in DoorDash is still high

Even though the company has had some legal issues in the past, the confidence of its financial backers has not been shaken. This became evident in March of 2018 when the investors once again rallied around the company to participate in a round of Series D funding. SoftBank Group led the round and others who also provided funding were Wellcome Trust, GIC and Sequoia Capital, which are previous investors. The total amount of capital raised by the group was $535 million.

14. DoorDash offers a good way to make extra money

Drivers who sign on to work for DoorDash as couriers can make some extra money working part-time. The company offers two different ways to earn money through their service. These are earning a flat delivery fee for each delivery that is made and keeping 100% of the tips.

15. Why there is no guarantee of payment

If you work during your assigned work time, then you'll get paid. However, there is no way to guarantee that any orders will be placed during the shift that you've chosen to work. When you sign on as a delivery person for DoorDash, you choose a certain range of hours. When orders come into the site, you have the option of accepting the orders and earning extra money. While there are times when no orders come in during your shift, there are peak periods where you can be kept as busy as you like. There is really no way to predict the number of orders that will come through and this is why there is no guarantee that you will earn a paycheck when you work for DoorDash.

16. There are haters who want to boycott DoorDash

Recently there have been posts from people who are not fond of the DoorDash company. They are calling for both consumers and restaurant owners to boycott the company. They voice a concern about the way that DoorDash has restructured their pay to drivers, also referred to as dashers. They are accusing the company of stealing the tips that are intended for the dashers and keeping it for the corporation instead of giving it to the workers.

17. Some restaurant owners lost business because of DoorDash

There have been plenty of controversies surrounding DoorDash services. Customers have lodged multiple complaints about the quality of the food that was delivered to them. In some instances, the food was cold when it arrived to their doors. This is an issue that has caused complaints to be lodged against the restaurants providing the food. It's unfair because once the food leaves the hands of those who prepare it, there is little that they can do about the speed at which it's delivered or if it is still hot when it arrives.

18. DoorDash is a member of the MealConnect system

This is a part of the Feeding America Charity through their MealConnect system. This service provides a hub for collecting donations of food which will be distributed to households in need of assistance. One of the programs that they support is the Meal Donation with a 1:1 ratio, providing one meal during the month of January for every meal delivered. This helps to feed entire families throughout the nation. They are a company that has a heart for those who are struggling to keep food on the table in the country and they're doing something about it. DoorDash invites their partners to help with this effort.

19. DoorDash uses its logistical services to help cut down on food waste

When there are so many going without in this nation and others throughout the world, wasting food is almost criminal. DoorDash is working on a pilot program through their charity system that uses their logistical expertise to help cut down on the waste that occurs when good food is thrown out because it is nearing the expiration date. They've partnered with the largest domestic hunger relief organization in the nation to accomplish this goal. In August of 2017, employees of the company took the initiative to begin making food donations to assist in this effort. There have also been multiple food pantries and restaurants who have happily helped by making food donations. The efforts have helped to stock food banks to get the food items to the tables of the families that are in the greatest need. Individuals are also helped as well.

20. DoorDash also offers a mobile app

In addition to providing an online format for offering their courier services, DoorDash has made it possible for mobile users to enjoy easy access to their services. They offer a free app that allows mobile users to gain full access to their website. It's compatible with iOS and Android. You can also use this app to make donations for their charity efforts. DoorDash is committed to keeping up with the latest technology to provide their services in accordance with customer demands. They're a progressive company with a very bright future ahead of them.

Dana Hanson

Written by Dana Hanson

Dana has extensive professional writing experience including technical and report writing, informational articles, persuasive articles, contrast and comparison, grant applications, and advertisement. She also enjoys creative writing, content writing on nearly any topic (particularly business and lifestyle), because as a lifelong learner, she loves to do research and possess a high skill level in this area. Her academic degrees include AA social Sci/BA English/MEd Adult Ed & Community & Human Resource Development and ABD in PhD studies in Indust & Org Psychology.

Read more posts by Dana Hanson

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