DoorDash facts for kids
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| Public | |
| Traded as |
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| Industry | Online food ordering |
| Founded | October 2012 in Palo Alto, California |
| Founders |
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| Headquarters |
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United States
37°47′08″N 122°23′45″W / 37.7856°N 122.3958°W |
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Area served
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Key people
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| Brands |
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| Services | Food delivery |
| Revenue |  US$8.64 billion (2023) |
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Operating income
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▲ –US$579 million (2023) |
| ▲ –US$558 million (2023) | |
| Total assets | US$10.8 billion (2023) |
| Total equity | US$6.81 billion (2023) |
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Number of employees
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c. 19,300 (2023) |
DoorDash, Inc. is a company based in San Francisco. It runs an online platform for ordering and delivering food. You can find its stock listed under the symbol DASH. DoorDash is the biggest food delivery company in the United States. It handles more than half of all food deliveries. It also leads in delivering convenience items. By the end of 2020, about 450,000 businesses, 20 million customers, and one million delivery people used DoorDash.
The company has faced some concerns. These include how tips were handled and how restaurants were listed. There were also questions about how delivery people were classified.
Contents
DoorDash History and Growth
In late 2012, four students from Stanford University had an idea. Tony Xu, Stanley Tang, Andy Fang, and Evan Moore were working on a mobile app. They were getting ideas from small business owners. A macaroon shop owner told them she struggled with deliveries. This gave them an idea.
In January 2013, they launched PaloAltoDelivery.com. This was in Palo Alto, California. In the summer of 2013, they got $120,000 in early funding. This money came from Y Combinator. The company officially became DoorDash in June 2013.
Becoming a Top Delivery Service
By December 2018, DoorDash became the second-largest food delivery service in the U.S. It passed Uber Eats. By March 2019, it even passed GrubHub. DoorDash then became the biggest food delivery provider in the U.S. It kept this top spot throughout 2019.
In October 2019, DoorDash opened its first "ghost kitchen." This kitchen was called DoorDash Kitchen. It was in Redwood City, California. Four restaurants operated from this single location.
Changes and Challenges
In January 2020, there were reports about how DoorDash handled tips. Some drivers said they earned very little after expenses. DoorDash said it changed its tipping system. But some still felt that payouts were unfair to drivers.
By June 2020, DoorDash had raised over $2.5 billion. Many investors helped fund the company. These included Y Combinator and Sequoia Capital.
During the COVID-19 pandemic in April 2020, DoorDash helped its drivers. It gave them gloves and hand sanitizer for free. The company also made contactless delivery the default option. This meant drivers could leave food at the door. During this time, DoorDash grew very quickly.
In October 2020, DoorDash started a program called "Reopen for Delivery." It helped restaurants that closed due to the pandemic. These restaurants could partner with local ghost kitchens. This allowed them to offer delivery and pickup service.
In November 2020, DoorDash opened its first physical restaurant location. It partnered with Burma Bites, a Bay Area restaurant. This spot was only for delivery and pickup orders.
On December 9, 2020, DoorDash became a public company. This means its shares can be bought and sold on the stock market. It raised $3.37 billion through this process.
In February 2021, more than half of DoorDash's drivers were women.
In May 2021, DoorDash faced criticism for listing restaurants without their permission. One restaurant, Lona's Lil Eats, said DoorDash listed them. But then it blocked orders to them. It redirected customers to other restaurants instead. This practice is not allowed in California.
In August 2022, DoorDash announced it would end its partnership with Walmart. This agreement had started in 2018.
In late November 2022, DoorDash decided to reduce its number of employees. About 1,250 corporate employees were let go. This was done to help control company expenses.
In June 2023, DoorDash gave its drivers a new choice. They could earn an hourly minimum wage. This was instead of being paid per delivery. However, drivers only get paid hourly when they are actively making a delivery.
In September 2023, the company moved its stock listing. It moved from the New York Stock Exchange to the Nasdaq.
Global Markets and Services
DoorDash started expanding internationally in 2015. Its first international city was Toronto, Canada. In 2019, it began operating outside North America. It launched in Melbourne, Australia, in September. Later, it expanded more in Australia. In 2021, DoorDash added service in Sendai, Japan, and Stuttgart, Germany. In June 2022, it expanded to the Wellington Region of New Zealand.
The company also added more services in 2020. It started offering grocery delivery. This began in California and the Midwest. In 2021, DoorDash launched DoubleDash. This allows customers to order from two different stores at once. It also added alcohol delivery in 20 U.S. states, the District of Columbia, Canada, and Australia.
Company Acquisitions
DoorDash has bought several other companies to grow its business:
- Caviar – In October 2019, DoorDash bought Caviar. This service delivered food from fancy restaurants. These restaurants usually did not offer delivery themselves. DoorDash paid $410 million for Caviar.
- Scotty Labs – In August 2019, DoorDash acquired Scotty Labs. This company worked on self-driving and remote-controlled vehicles.
- Chowbotics – On February 8, 2021, DoorDash bought Chowbotics. This robotics company was known for its salad-making robot.
- Wolt – On November 9, 2021, DoorDash announced it would buy Wolt. Wolt is a technology company from Finland. The deal was worth over $8.1 billion.
Helping Communities (Philanthropy)
In 2018, DoorDash started Project DASH. This program partners with local groups that fight hunger. It helps deliver food donations to people who need them. By August 2019, the program was in 25 cities. It had delivered over one million pounds of food. As of September 2021, Project DASH worked in more than 900 cities. It had delivered over 15 million meals.
DoorDash also partnered with the National Urban League in 2020. This was part of its Main Street Strong program. The program promised $200 million over five years. This money was to support restaurants during the coronavirus pandemic. The partnership with the NUL included $12 million. This funding helps drivers of color learn job skills and manage their money better.
DoorDash has also worked with Meals on Wheels. This helps deliver food to senior citizens.
How DoorDash's System Works (Algorithms)
DoorDash uses a smart system called an algorithm. This system automatically chooses the best delivery route. DoorDash's delivery system can learn on its own. It changes based on different things. These include how many delivery people are working. It also considers the time of day. And it looks at how many food orders are expected.
See also
- Uber
- Delivery Hero
