door dash

This is the previous paper you completed I was unable to attach it.

DoorDash Marketing Problem Statement

DoorDash is an American company that delivers food through online orders to its clients

(Zheng, 2021). The company has three major customer groups, including restaurants that want

delivery infrastructure, end-users who want convenient access to their meals, and drivers who want

flexible income. DoorDash has a commission-based revenue model to restaurants, delivery fees,

as well as service charges to consumers and subscriptions through its Dash Pass membership

program. Since the operations of delivery are very marginal, with the cost of orders varying and

the number of drivers going up depending on the time of day, the profitability of the business is

based on the volume of transactions and the frequency of repeated use. This is the central defining

aspect of the marketing challenge of their business model.

The capacity of DoorDash to maintain the high ordering frequency in its revenue model is

increasingly threatened by factors such as the cost of customer acquisition, platform reliance issues

among restaurant caterers, and growing market competition, which is already commoditized.

Although DoorDash controls 67 per cent of the U.S. market share as of March 2024, restaurants

are moving away from withholding a commission structure as a viable marketing approach within

the platform (DoorDash, 2025). The brand loyalty among consumers is low, as they tend to make

changes between delivery apps depending on promotional offers instead of the platform itself.

Moreover, the high dependence of the company on paid social media and performance marketing

to find customers puts increasing costs on unit economics. With restaurants finding direct-to consumer

avenues to eliminate commission reliance and competitors not being far behind on

delivery speeds and choice, DoorDash has a massive problem in maintaining its relationship with

merchants, as well as customer retention, to be able to continue growing. Devoid of a unified

marketing approach that creates unique brand value for it beyond promotional rates and generates

quantifiable loyalty on both ends of its market, DoorDash will become a commoditized utility with

neither restaurants nor customers having reasons why they should use its platform over

competitors.