In this blog, we have uncovered the simple yet effective tactics behind the success of unicorn food delivery app, DoorDash. If you want to know more about these tactics, which would help you during food delivery app development, then take a quick look to know what’s inside it?
Everyone who either has just started startup companies or planning to dive into this world, undoubtedly, they wish to become among one of those Unicorn companies like Uber (ride-sharing company), ANT Financial (an affiliate company of Alibaba Group), DiDi Chuxing (China-based ride-sharing company) and Airbnb (America-based company).
If we’re talking about one of the top Unicorn companies, then we can’t forget to mention about DoorDash that is a San Francisco-based on-demand food delivery service provider, founded back in 2013. One of the best food delivery apps, DoorDash has joined the unicorn club with its latest round of funding, according to the latest report from TechCrunch. Moreover, the company now valued at $1.4 Billion.
Recently, the food delivery startup, DoorDash, on Thursday said it has raised $250 million in new venture capital funding at a $4 billion post-money valuation. This just comes just five months after the company raised $535 million at a $1.4 billion valuation, in a round led by SoftBank Vision Fund.
According to the Crunchbase report, “DoorDash had previously raised around $186 million. If it comes to talking about the growth, then the company is planning to expand from 600 cities to 1,600 cities. However, an on-demand food delivery giant is still focusing only on the U.S and Canada.
According to another latest report from TechCrunch, DoorDash has announced that it has raised $400 million in Series F financing. Earlier this month, The Wall Street Journal reported that the company was looking to raise $500 million at a valuation of $6 billion or more. The total funding amount came at a $7.1 billion valuation.
4 Simple Tactics Behind The Success of Food Delivery App, DoorDash That Recently Joined The Unicorn Club
Living either in Vegas or Baltimore, it is quite hard for the one, who is searching for food delivery, and it is hard to have enough time to try all the best restaurants and different cuisines in such big cities. In such situations, the user prefers the on-demand food delivery service app for instant food. In case, if you as a startup planning to enter the on-demand food delivery industry, then you need to check out the following 4 simple tactics, which are behind the exponential growth of DoorDash.
Tactic #1: Understand The Area of Business
One of the latest and popular on-demand food delivery apps, DoorDash is already in the news due to its stunning growth in a short span of time. To prevent your food ordering apps to get immature, you need to understand the territory of your business.
Start with the Small Scale
One of the pivotal points which you need to follow is to start with a small scale first as DoorDash did. The company has started its business on small scale. On the other hand, choosing a large scale can be overwhelming for you as a business owner. However, a small scale can reinforce the business by eliminating overhead expenses.
Embark on The Small Numbers of Restaurants at First
Globally, the food delivery market stands at $83 billion, and food sold through restaurants and fast food chains. The on-demand food ordering market has already matured in almost every country. However, there is one thing that has been cleared already is that investing in on-demand can be beneficial for you because of its robust growth.
But, all you need to take care of is that – being a startup, you just embark on the small numbers of restaurants at very first. In the below-given graph, you can check the food-delivery market that has potential growth in the upcoming years:
Tactic #2: Develop Meaningful Partnerships and Comfort for The Users
From the very beginning, DoorDash has differentiated itself from its rivals and other on-demand food delivery companies like Seamless, Postmates and UberEats. Startups need to develop meaningful partnerships with the restaurants that was also adopted by DoorDash app to deliver food to you. And secondly, your business needs to provide the service which delivers comfort for the users.
- Rather than leaving the delivery process on its staff and drivers, it is important as a startup company to involve in the entire process. Also, you need to develop ways to make menu-options user-friendly, plus choosing the range of delivery of meals for restaurants.
- That being said, “The longer you wait, the harder it is to produce outstanding customer service”. This phrase is true only when your service is geared towards the comfort of your users. One of the biggest factors behind the comfort of the users is saving time and money. To become one of the top food delivery apps, you need to ensure that your business should target the most approachable area and targeted locations which are within reach. Also, you should slowly expand your business if needed. And, it is also important to start from covering the small section.
Tactic #3: Introduce The New Set of Features Constantly
Users always look for constant improvements from the services they use. Therefore, in order to grow your business in terms of food delivery apps like DoorDash, you need to introduce a new set of features on regular basis. Because customers want more options, and they can pay a bit more for customized services and better food.
“Group Ordering” Feature: There’s a feature named as a “Group Ordering” in DoorDash. This feature is helpful for larger orders. Also, it can become easier with new iMessage integration. It also makes it easy for app users to order food from an iMessage.
Image Source: DoorDash
Once the food delivery app like DoorDash is installed into iMessage, the user can create a group message. This feature makes ordering food as simple as sending the text message. Furthermore, when the user picks a restaurant from the food delivery app, then a new chat message will appear in the conversation with the group order. The user can send this message to other participants in the iMessage group chat, too. Moreover, the group of friends do not need to worry about the order because it can be easily done with an iMessage.
Bottom line: If you are ready to develop an on-demand food delivery app, then make sure you must introduce a new set of initiatives in terms of features in the app and delight your customers with your services.
Tactic #4: Business Focus
Normally, each food delivery service includes three activities i.e. platform, preparation, and delivery. The on-demand food delivery service must manage all these three areas. Suppose, if your food delivery service charges fees lower than the other food delivery apps, then it could be an effective marketing strategy for your industry. In a nutshell, startups need to concentrate on what the product does the best, and use this as an advantage in front of the rivals.
Are You Ready To Embark on The Idea on Food Delivery Service App?
We’ve analyzed and covered the powerful tactics, which are behind the success of on-demand food delivery giant Doordash. Moreover, these would be helpful during on-demand food delivery app development.
However, by implementing these aforesaid tactics, you can magnify your food delivery service, too like Doordash. On the other hand, for entrepreneurs, no matter which approach you have followed, it is a good idea to stay abreast of what is latest and changing over time. As the requirements and expectations of users change constantly, you need to follow different approaches, methodologies and ways of serving them.
After going through this blog, if any new and unique idea pops up in your mind to embark on the on-demand food delivery, then cross-verify it with any iOS app development company that have already developed food delivery apps.
In case, there’s still any query or confusion left in your mind regarding on-demand food delivery app development or the development cost of food delivery service app, then just consult us through below-given form and we’ll get back to you within 48 hours with an optimal solution.