DoorDash, Inc.
DoorDash, Inc., together with its subsidiaries, operates a commerce platform that connects merchants, consumers, and dashers in the United States and internationally. The company operates DoorDash Marketplace, Wolt Marketplace, and Deliveroo Marketplace, which provide various services, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers consumer membership programs, DashPass, Wolt+, and Deliveroo Plus; advertising as a value-added service through its marketplaces; and white-label delivery fulfillment services, as well as services that help merchants establish online ordering, build branded mobile apps, manage reservations and in-store dining, manage consumer relationships, enable tableside order and pay, and improve customer support. The company was formerly known as Palo Alto Delivery Inc. and changed its name to DoorDash, Inc. in 2015. DoorDash, Inc. was founded in 2013 and is headquartered in San Francisco, California.
What does it do?
DoorDash is the app you open when you want Chipotle delivered to your door without leaving the couch. It connects three groups: restaurants and stores (merchants), hungry customers (consumers), and the drivers who make deliveries (Dashers). Beyond food, DoorDash now delivers groceries, pet supplies, and even alcohol. It also owns Wolt, a similar platform popular across Europe and the Middle East, and recently acquired Deliveroo, giving it a major foothold in the UK.
DoorDash controls roughly 67% of the US food delivery market, making it the dominant player in a category that has become a daily habit for millions of people. Investors are paying close attention right now because the company just turned its first full-year profit in 2024, which is a big deal for a company that burned cash for years. The Deliveroo acquisition also signals DoorDash is serious about becoming a global commerce platform, not just an American food app.
How does it make money?
DoorDash makes money primarily by charging a commission on every order placed through its marketplace — typically 15% to 30% of the order value paid by the merchant. Customers also pay delivery fees and service fees on top of their food cost. A growing chunk of revenue comes from DashPass, its subscription service (around $9.99/month) that gives members free delivery, which helps lock in loyal, high-frequency users. Revenue grew from $10.7B to $13.7B in the latest year — a 28% jump — and the company posted $0.9B in net income, its first profitable year.
Why do investors care?
The growth story is that DoorDash can expand from food delivery into a broader local commerce platform — think delivering anything from any store near you, not just restaurants. Internationally, Wolt and the newly acquired Deliveroo give DoorDash access to markets where food delivery is still growing fast. For the thesis to work, DoorDash needs to keep growing order volumes, expand its advertising business (where restaurants pay to appear higher in the app), and prove that international operations can become profitable too.
Deep Dive
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