Tag Archives: By Dash

DoorDash’s Appeal Beyond Food | Instant News


Food delivery platform

By Dash

RUN -3.14%

it is now trading almost 90% on it initial public offering price such as a vaccine that is widely distributed in the US and restaurants in some of its largest markets are poised to reopen outdoor dining. So why isn’t this stock too short?

The answer may be more about comfort than taste. Apart from restaurant deliveries, DoorDash has built its market share in third-party shipments for other goods, such as items from 7-Eleven, Wawa, Circle K and CVS. Post-pandemic, those additional opportunities could prove more important to DoorDash’s growth thesis than bearish investors appreciated.

Much of DoorDash’s appeal ahead of its December IPO is how quickly it can go from 0 to 60 in food delivery. The company said it had only a 17% share of the US market in terms of total sales in January 2018 but that share had grown to 50% in October – nearly double that of its next biggest competitor, Uber Eats. Now it turns out that in newer markets such as practical freight forwarding, DoorDash has grown even faster.

A report from Edison Trends Thursday shows DoorDash now owns 58% of US convenience store spending via third-party delivery apps, more than double that of its next biggest competitor, goPuff. Last January, Edison Trends had DoorDash’s share of around 5% and goPuff’s 70%. For all of Uber’s talk of leaning heavily on additional delivery services, Uber Eats’ market share in third-party convenience goods is now just 8%, according to the report.

For DoorDash, the supermarket may be more than just the icing on the cake. According to Edison Trends’ analysis, overall online consumer shopping at convenience stores grew by nearly 350% in 2020, almost three times faster than online restaurant consumer sales. DoorDash customers increased their convenience store spend by 162% sequentially from the third to fourth quarters, according to EdisonTrends data – a good sign for DoorDash’s first earnings report as a public company to come later next month.

Opportunities beyond traditional food delivery appear to be a big part of what differentiates analysts who have remained positive at DoorDash from those who feel they are overvalued. In his initiation report, Truist analyst Youssef Squali pegged the potential addressable markets in groceries and convenience, including e-commerce and bricks and mortars, about $ 50 billion for the industry as a whole, with an additional $ 22 billion coming from specialty food stores and $ 60 billion came from beer, wine and liquor stores. With regards to a highly concentrated wholesale market, he notes that more fragmented areas such as fast delivery could be more profitable. Meanwhile, Angelo Zino from CFRA Research initiated coverage on DoorDash with a sale rating, not to mention the convenience opportunity.

Cautious investors worry that demand for food deliveries will ease as the pandemic eases, but that doesn’t mean demand in other areas will shrink. Analyst forecasts compiled by Visible Alpha show DoorDash’s average order value decreased 23% from 2020 to 2025, but monthly orders per active customer grew by nearly 30% during that period. More options should continue to bring more customers to the DoorDash platform, that is very strong in the suburban market practical shopping is not necessarily walkable Analysts estimate DoorDash’s monthly active customers will grow by 21% this year alone.

SHARE YOUR MIND

Have you used DoorDash to order groceries during the pandemic? Join the conversation below.

In its DoorDash initiation report,

JP Morgan‘s

Doug Anmuth called food delivery a “forever changing category,” noting that while growth may slow, activity will still pick up, given the value of convenience and consumer choice. He cites new verticals, such as convenience, grocery stores and pharmacies, as key growth drivers.

When it comes to restaurant outings, visiting a corner shop is always more of a chore than a gift. It’s possible that even though visitors are racing to return to eat after the pandemic, they will continue to order everyday items.

To DoorDash, that is indeed a comfortable narrative.

Ghost kitchens have sprung up across the US as food deliveries spike and restaurant dining slumps amid the pandemic. This business, which can organize food preparation for several restaurants in one location, is attracting interest from investors and restaurant owners. Photo: Adam Falk / The Wall Street Journal

Write to Laura Forman on [email protected]

Copyright © 2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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The food delivery driver is caught on camera stealing the Mich family puppy | Instant News


WARREN, Mich. (WXYZ) – Police say a DoorDash worker who delivered food to the Michigan home dropped off the food but then left with her family’s 8-week-old pup.

Right after New Years, police used surveillance video to chase leads after an 8-week-old puppy named Bella was stolen from Ashley Swinton’s home in Warren, Michigan. The crime, which was allegedly committed by a 26 year old DoorDash delivery driver, was caught on camera.

“You can see him petting the dog, rubbing the dog. I guess he’s trying to see if the dog is fierce or something. Then, you see he picked up the dog and immediately took him to the car, “said Swinton recalled the video.

With help from DoorDash, police say they tracked down the delivery driver, who allegedly confessed to the crime. He did not explain his actions.

“They invited this person to deliver food to their house and trust them to do their job, and they delivered food but obviously took something that wasn’t theirs,” said Detective Brian Price of the Warren Police Department.

The police find Bella and return her to the Swintons, who got the puppy for Christmas.

“If you can take a dog, you can take someone’s, you can take a key, you name it. We don’t just do things like that, “said Swinton.

It is hoped that the charges in this case will be filed soon.

Copyright 2021 WXYZ via CNN Newsource. All rights reserved.

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The founder of ‘fast’ DoorDash in building a food delivery empire | Instant News


PALO ALTO, USA – Tony Xu, co-founder and CEO of US food delivery giant DoorDash, always needs speed.

Born prematurely in Nanjing, China, his parents decided to name him “Xun”, which means “fast” in Chinese not only because he was born very early but also because labor only took a few minutes.

He didn’t keep that name for long, although. After moving to the US with her parents in 1989, Xu soon realized that her name was too difficult for her American friends to pronounce. So he decided to change his name to Tony, after Tony Danza, the star of the classic sitcom “Who’s the Boss,” which Xu watched after school every day to learn English.

Even though Xun was no longer his official name, Xu had not lost his penchant for moving fast. The 36-year-old CEO published DoorDash in December just seven years after he founded the company while studying at Stanford University. It is one of the biggest IPOs of 2020.

DoorDash started as PaltoAltoDelivery.com in 2013 with only eight restaurants on site and three delivery staff: Xu, and two of its co-founders, Andy Fang and Stanley Tang. Now DoorDash has more than 390,000 merchants on its platform, more than 18 million subscribers, and more than 1 million Dashers, as its delivery personnel. called, according to company filings.

Burning growth has become the hallmark of DoorDash. The company controlled only 17% of the US food delivery market in January 2018, well behind its main competitors Uber Eats and Grubhub. Two years later, it now accounts for 50% of the market, well above Uber Eats 26% and Grubhub 16%.

“The DoorDash here is really thanks to my mother. You see, she found out everything in 1984 when I was a premature baby,” Xu said during an interview with Nikkei Asia, jokingly referring to his mother’s decision to name him Xun.

Xu has more than just his name to thank his mother. His interest in the food business started at a Chinese restaurant in Champaign, Illinois, where he worked as a server.

Like many immigrant families who came to the US, the Xu family didn’t have much of a treasure when they first arrived. Her mother is a doctor in China but the US does not recognize her Chinese medical license. He worked three jobs, including one restaurant, for 12 years before saving enough money to return to medical school.

A big fan of Mario Bros., Xu washes dishes at a restaurant with his mother to save up for a Nintendo. He’s got not only video game consoles, but hands-on experience of the struggles at mom and pop restaurants, something he says prompted him to start DoorDash as a technology platform to help small businesses connect with consumers more easily.

“Helping the brick and mortar business compete, succeed and thrive in this rapidly changing age is a core issue we are trying to solve,” Xu said in his DoorDash IPO application.

After graduating from the University of California, Berkeley with a degree in industrial engineering, Xu works for McKinsey and eBay with the dream of becoming a cancer researcher. The idea of ​​becoming an entrepreneur didn’t come to him until he met the two founders of Startup Garage, a project-based course at Stanford. They got the idea of ​​a food delivery service for a class project after talking to a small but popular macaroon shop owner who said he couldn’t satisfy a customer who wanted cakes delivered to their office.

It didn’t take long for Xu to decide to continue with DoorDash after school. “I really like the projects I’m working on with my co-founders, I really like working with my co-founders, so let’s move on, and that’s it,” Xu said.

In DoorDash’s first two years, Xu delivered food every day in his 2001 Honda Accord, a car he continued to drive until last year.

But the company soon grew beyond Xu’s Honda’s reach. After receiving a $ 535 million investment in 2018 from SoftBank Vision Fund, Singapore sovereign wealth fund GIC, and Silicon Valley venture fund Sequoia Capital, DoorDash is expanding to more cities in the US and launching services in Canada and Australia.

The coronavirus pandemic has not slowed the growth of DoorDash. On the other hand, the company increased faster in 2020, outpacing its competitors. During the September quarter, for example, DoorDash’s revenue surged more than 250% year-on-year, while for Uber Eats it grew 125% and Grubhub 52%, respectively.

“The trend of DoorDash being a shareholder and growing faster than anyone else is an established pre-pandemic,” said Tom White, senior research analyst at DA Davidson. “And the pandemic is only exacerbating an existing trend.”

DoorDash has been able to grow faster than its competitors thanks to its ability to identify less impenetrable markets, such as suburban areas in the US, and build its brand before rivals, said new technology analyst Asad Hussain at PitchBook, a capital market intelligence service.

While there are ample market opportunities in other regions, Xu said his company prioritizes the US, Canada and Australia before expanding elsewhere. “For me, this is a business where we want to go a little and long before we spread our wings anywhere,” he said.

Rapid growth does not come without a price. An early DoorDash employee described Xu’s working hours and leadership style as “ruthless” with “very, very high standards” for employees, according to a Financial Times report.

“I have high standards because I think people can achieve more than they think they can do on their own,” Xu told Nikkei.

“I’ve always had very high standards and a high energy to try to reach the standard. I give a lot of this credit to my parents, because they never really limited what I can do,” he added.

Now living in San Francisco with his wife and two children, Xu said he wants his children to have a childhood like him: free to explore whatever their dreams are.

“My mother is, in many ways, living the dream of America that is delayed. For 12 years, she has been working three jobs a day and putting off what she really wanted to do,” Xu said. “Because of her sacrifice, I don’t have to put off my dreams.”

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The New California Law Could Ruin Some of the Growth for the Food Delivery Platform | Instant News


How valuable the restaurant choice is delivery platform growth over the past year? We can find out immediately.

The California bill is set to require third-party delivery platforms to declare agreements with merchants to ship food orders starting January 1. The bill will effectively end the growth strategy platform incl

By Dash

and Postmates have historically worked to rapidly increase their delivery footprint. Delivery platforms must remove so-called non-partnered food vendors, or whose agreements they do not have, from their California applications. Without a deal, delivery platforms can post restaurant menus without a permit, sometimes causing complications for restaurants such as overcrowded dining rooms with unexpected deliveries or orders for items the kitchen no longer makes.

While users may be surprised, the company itself is well prepared. DoorDash, for example, said in its public offering that more than 95% of its gross order value came from merchants who partnered in the nine months ended September 30. As well as,

Uber Technologies

Uber Eats said it was developing active partner restaurants by 70% from year to year in the third quarter.

The California bill won’t affect all players equally. The impact on Postmates, whose biggest market is Los Angeles, could be enormous. Postmates has 700,000 merchants on its platform, according to a September regulatory filing from Uber.

Of these, only 115,000 were partners at the time, according to the company.

Specifically in California, Postmates said it had 40,000 merchants who were not partnered in September when the bill was signed into law. They will have to leave the platform if they are not converted by the end of the year. Any potential impact will flow to Uber’s business since they acquired Postmates this year.

No major player is completely isolated.

Grubhub,

which has recently started adding non-partnered restaurants to its platform, may also see some of its recent reversed advantages. While the company has for years prided itself on only listing restaurants that have partnership agreements, the tremendous growth of competitors forced Grubhub’s hand to also add non-partnered restaurants to better compete.

According to the proposed regulations, Grubhub is growing its restaurant by offering 114% for the year ending September 30. As of the third-quarter submission, 55,000 of its 300,000 restaurants remained unpartified. While the largest market is New York City, it appears that a significant number of non-partnered restaurants are in California.

More broadly, many of the Covid-19 temporary assistance regulations cover food delivery commission limit in cities nationwide also includes increased transparency measures. Starting last week, for example, Minneapolis began requiring delivery platforms to obtain restaurant approval for services performed such as delivery. Similar regulations were passed in Philadelphia, Denver, Tucson, Ariz., And elsewhere. An assembly bill introduced in New York in November would ban unauthorized lists of food vendors on delivery platforms across the state.

While restaurant selection is just one of the many ways in which delivery platforms compete for consumer businesses, this is perhaps the most important. DoorDash, for example, now has a dominant market advantage over its US competitors, even though its food is on average not up to the fastest and loyalty program not cheaper than those offered by competitors. It is now believed to have the largest US partner merchant network. Much of that growth was achieved by asking restaurants to partner with them after demonstrating the platform’s value, not before.

The rules will increase barriers to entry, which may be the reason why some in the industry support them. But by requiring a partnership agreement up front, at least a percentage of restaurants will choose not to use any platform and just run it themselves. That could hinder industrial growth.

Write to Laura Forman on [email protected]

Copyright © 2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Food Delivery Costs: How to Avoid a $ 18 Burger | Instant News


In Caviar’s food delivery app for San Francisco, ShackBurger doubles from

Shake Shack

SHAK -0.85%

listed at $ 8.99, the same price as in-store prices. But by the time it reaches your door, it’s $ 18.91. Here’s a breakdown of nearly $ 10 in additional fees:

  • Tax: $ 0.76
  • Shipping cost: $ 1.99
  • Suggested tip: $ 3
  • Small order fee: $ 3
  • Service fee: $ 1.17

During a pandemic, people are willing to pay for shipping as a way to be careful when getting food and groceries. Following the first round of shelter-in-place orders, the suburbs pushed profitable first quarter to

By Dash Inc.,

RUN 7.87%

who has Caviar. In April, Instacart Inc. experienced a 500% year-over-year increase in grocery orders. Company buyer contractor become a front line worker overnight.

When the state updates restrictions on eating indoors and extend stay home orders across the country, shipping is taking priority once again. But consumers are increasingly wary of rising shipping costs, and companies are offering their users better deals, in exchange for loyalty. What’s the best way to save money? Pay attention to the details.

Cost is not the only source of additional costs. The price of individual items can also be added.

Costco,

for example, it does not require Instacart grocery delivery customers to have a $ 60 per year membership as in-store shoppers do, but Instacart charges a higher price on Instacart than at its warehouse, in addition to additional fees.

Rags Srinivasan, a pricing consultant, recently set a markup for his Instacart Costco order when a buyer mistakenly sent him the original receipt at the store. Instacart orders ended up about $ 20 higher. “This is convenience inflation, and it’s going largely unnoticed,” Srinivasan said.

Cost of Convenience

Comparing the price of groceries purchased at Costco in Mountain View, California, with what Instacart charges customers who order them shows hidden markups, in addition to shipping costs.

Price before shipping cost and taxes

Charmin’s toilet paper

30 ct.

Gift paper towels

12 ct.

Kirkland Strawberries

4 lb.

Coconut Milk Thai Kitchen

6 x 13.66 fl. ounce

Kirkland tortilla chips

40 oz.

Charmin’s toilet paper

30 ct.

Gift paper towels

12 ct.

Kirkland Strawberries

4 lb.

Coconut Milk Thai Kitchen

6 x 13.66 fl. ounce

Kirkland tortilla chips

40 oz.

Charmin’s toilet paper

30 ct.

Gift paper towels

12 ct.

Kirkland Strawberries

4 lb.

Coconut Milk Thai Kitchen

6 x 13.66 fl. ounce

Kirkland tortilla chips

40 oz.

Charmin’s toilet

paper, 30 ct.

Gift paper

towel, 12 ct.

Kirkland

strawberry, 4 lb.

Thai kitchen

coconut milk,

6 x 13.66 fl. ounce

Kirkland

tortilla chips,

40 oz.

An Instacart spokesperson said retailers set their own prices on the platform, and the company notifies customers on the app whether prices are the same or higher than in-store. He noted that Costco members can enter their membership number into Instacart to open member-only savings. A Costco spokesman declined to comment.

Rafi Mohammed, author of “The Art of Pricing,” finds the same applies to several restaurants on delivery apps. A Boston-based Italian restaurant, T Anthony’s, sells a large meat lover’s pizza for $ 19.20. At Uber Eats, the same pie costs $ 23.90. Prices at DoorDash and

Grubhub

lower but still high.

The difference helps cover Uber’s 30% commission, said Joe Rastellini, the restaurant owner. “Before, I only had my own driver and Grubhub. Then, because of the pandemic, I ended up adding new services, and when you sign up with them you have to play football. “

Mr Rastellini added that his restaurant website offers local delivery at no extra cost, apart from tips and taxes.

For many, the variety and convenience of delivery applications is worth the extra cost. However, you may be able to save by contacting your favorite restaurant directly.

Pak Mohammed expects shipping prices to fall after the pandemic. “Instead of going to the movies or playing football, we’ve spent the money on ordering,” he said. “Post-vaccine, people will want to eat out, and that will lower demand for delivery.”

That fee has gone down for some via subscription plans. You pay a certain amount monthly or annually in exchange for a reduced cost per order (and sometimes faster service). Are they worthy? Only if you order often enough. Here’s how subscription plans work for the most popular food delivery and grocery delivery services:

Instacart Express

Price: $ 9.99 a month; $ 99 a year

A decent monthly minimum: Three orders

Nonmember shipping costs: $ 3.99

Instacart membership waives shipping on carts of $ 35 or more. Benefits also include one hour of free pick-up and reduced service fees (1.9%, not 5% nonmembers). The service isn’t limited to groceries, either: Retailers including Best Buy and CVS are also on the app.

Instacart will shop for you at wholesale stores, Best Buy and CVS.


Photo:

Michael Loccisano / Getty images

Walmart

+

Price: $ 12.95 a month; $ 98 a year

A decent monthly minimum: Two orders

Nonmember shipping costs: $ 7.95

The new Walmart program is a new version of the now-deprecated Unlimited Shipping membership, which offers free shipping from local stores. With Walmart +, you can order same-day groceries from participating local shops between 7am and 8pm – and next day’s knick-knacks from Walmart.com – at no extra cost.

Free grocery delivery requires a minimum basket of $ 35. No orders from Walmart.com, but only items “shipped by Walmart” are eligible. Customers also save 5 cents per gallon on fuel at Walmart locations and gain the ability to scan and purchase in-store items from their cell phones – saving trips to the payment line.

Shipt

Price: $ 99 a year

A decent monthly minimum: One order

Nonmember shipping costs: $ 10

Shipt previously required annual memberships to get same-day delivery from retailers such as Target, Petco, CVS and Costco – plus many local grocery stores. Now the service, which is owned by Target, offers one-time tickets for $ 10. But if you order from Shipt at least once a month, the subscription is well worth it. Orders under $ 35 are still subject to a $ 7 shipping fee.

Amazon

Prime Now

Price (included in Prime subscription): $ 12.99 a month; $ 119 a year

A decent monthly minimum: Depends on your use of Prime

Nonmember shipping costs: N / A

Whole Foods, Amazon, and Pet Food Express same-day delivery programs are available exclusively to Amazon Prime members in select cities. Orders under $ 35 come with a $ 4.99 shipping fee. The Prime subscription also offers fast free shipping from Amazon.com and a large library of streaming media, including movies and music.

A driver prepares to make a delivery in Dublin, California.


Photo:

shannon stapleton / Reuters

DoorDash / Caviar DashPass

Price: $ 9.99 per month

A decent monthly minimum: Three orders

Nonmember shipping costs: $ 1.99 to $ 3.99

Food delivery subscriptions free shipping and reduce service fees (17% for nonmembers) across DoorDash and Caviar. Orders must be at least $ 12, and only works with participating DashPass restaurants. (Chipotle, yes; Panera, no.) While DoorDash is known to offer food delivery from national chains, the service added retailers such as Walgreens and CVS earlier this year.

Uber Eats Eats Pass

Price: $ 9.99 per month

A decent monthly minimum: Three orders

Nonmember shipping costs: Up to $ 3.99

SHARE YOUR MIND

What food delivery application do you use? How was the experience? Join the conversation below.

At eligible restaurants, you get a shipping fee waiver and a 5% discount on orders that meet a minimum of $ 15.

There are other ways to get free delivery from Uber Eats, but they’re not guaranteed: If someone near you orders food, sometimes you can pick the same restaurant and the shipping costs are lowered. Think of it as UberPool, but for your dinner.

Grubhub +

Price: $ 9.99 per month

A decent monthly minimum: Three orders

Nonmember shipping costs: Up to $ 3.99

Earlier this year, Grubhub launched this program with 100,000 participating restaurants across the US. Customers receive free shipping on orders $ 12 or more, and free food to pick up ($ 10 or less) each month. They also get access to elite customer service. The company offers a two-week free trial of the service.

Grubhub delivers in downtown Manhattan.


Photo:

fresh mike / Reuters

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Write to Nicole Nguyen at [email protected]

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