Making money is not that difficult in today’s time if you know how to use the technology and trends properly in your business and grab it as an opportunity to earn money. Many businesses used technology and started businesses that used to be run offline and now earn huge revenue. One such big name is DoorDash - a food delivery app. Some of the frequently asked questions by users on the Internet are How does Doordash make money? What costs does it take to build an app like DoorDash? Is building an app like DoorDash profitable?

We’ll answer all your questions in this blog and provide the solutions to your queries with the optimum results.

Let’s begin this blog

Many of you might know about Doordash but not everyone is aware of the popular app. So, we will guide you with the appropriate information about the Doordash.

What is Doordash?

Doordash is a popular food delivery app in the USA founded in 2013 that connects customers with local Cafes and restaurants with the ease of services in delivering food. What could be more exciting and interesting than knowing that Doordash is the biggest food delivery app in the USA capturing 57% of the Market share in food delivery and around 60% share in the whole convenience category services making it the popular choice for the convenient app?

Let’s see how Doordash works in 4 easy steps

Here‘s a short and brief description in 4 easy steps that will give you a complete understanding of how Doordash works and provides its services with the help of an ecommerce app.

Choose the restaurant and cafe you want to order food from.
Select the food and place an order by choosing the payment option either online or COD.
Track your order to ensure a live status of your order and a safe and secure delivery.
Delivery of the item by the delivery partner and handover of food ordered with which the service ends.

You have seen the process of how this app works where you order food and get it delivered and you pay the amount. Now, the question in your mind would be How Doordash make money with food delivery? Let us clarify this.

How Doordash make Money Through the App?

How Doordash make Money Through the App?

Doordash is an app that provides convenience to customers by delivering food to their doorsteps and picking it up from restaurants and cafes. But it’s a business and not an NPO where Doordash does free service. It makes money in this process in the following ways.

Fixed Commission

Users can order their favorite food from any restaurants listed in the Doordash and it provides delivery services to the customers on behalf of the restaurant. Doordash charges a fixed amount of Commission on each order it delivers from a particular restaurant that lies between 15-30%. This app provides 3 different plans for commissions which restaurants can choose based on their choice.

Basic- 15% commission on each order
Plus- 20% Commission on each order
Premium- 30% Commission on each order

These percentages are deducted from the order value but besides that, Doordash charges a 6% pick-up fee from the restaurant.

Delivery fee

Another way by which the Doordash make money is in the form of charging the delivery fee. The delivery partner charges some amount of delivery fee according to the distance they cover in completing the order delivery. Usually in the USA, the delivery charges lie between $5-10. This fee is mainly decided by the distance between pick-up and drop location.

Advertising and marketing

This is the most significant aspect of every business to make everyone aware of their business. Through the listing on the Doordash, the restaurant and the cafes get a chance to market themselves among the users of the Doordash platform for which it charges some amount from the particular food business.

Money from Subscription

You might understand the Gold passes offered by Indian food delivery app Zomato. In the same way, Doordash offers a Dashpass which allows users to save money on orders above $12 with some coupons or a free delivery fee. In return, they have to pay a monthly subscription fee of around $9 to $10 by which Doordash makes money.

Corporate Catering

The Doordash adopted a new idea to earn money by offering the option of Corporate catering allowing the companies to order a large number of orders at reasonable amounts with some coupon. This costs companies less than ordering individually and also helps Doordash earn money via their delivery services.

You might be amazed by the revenue model and how Doordash makes money with its app. We wonder if you are thinking to develop an app like Doordash but are worried about the costs of development. Don’t worry! We’ll guide you about the costs.

Cost to develop an app like Doordash

Cost to develop an app like Doordash

Cost is a term that everyone is concerned about when developing anything for their business or taking some initiative to boost their business. But the cost to develop an app like Doordash is not fixed and it depends on various factors that influence the overall cost of developing Doordash-like apps.

Various factors such as app Complexity, structure, customization requirements, feature demands, developer's location, and estimated budget for the app development determine the overall cost of developing a food delivery app like Doordash. These costs keep on fluctuating according to different business requirements and various factors.

Is it profitable to develop an app like Doordash?

In this convenience-centric environment where customers seek the convenience of services for everything. Delivering the services next to their doorstep is a great opportunity and will definitely boost your business with a satisfactory ROI. We have discussed above how Doordash is making money with this service. You can also generate huge revenue for your business with the development of an app like Doordash.

Where to Find Perfect Developers?

We have discussed the popular food delivery app, Doordash and how it makes money using the platform. Knowing about the factors that determine the overall costs to develop an app like Doordash and the assurance of profitable business with the app development like Doordash, you might be looking for someone you help you out in this situation. Here we are, Hornet Dynamics - a leading ecommerce solution provider and app development company that helps its clients with the optimum solutions they are seeking.

You can reach out to us at hornetdynamics@gmail.com or contact us to get the app development process started.

How does Doordash make money?

Table of contents

Follow Us

Share Your Thought