Why is a delivery cheaper than a ride ?

Mar 25 26 Comments

Say I order a plate of sushi worth 20$ from a place 5 miles away. The delivery costs me $4 + tip.

If I take a ride, it'll cost me 15$ + tip.

There is an 11$ difference. How does doordash afford to do deliveries at this price? Shouldn't they be bleeding money and eventually bleed to death ?

Ps. I know they charge restaurants but is it really enough to cover this difference ?

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TOP 26 Comments
  • Amazon
    DeOppHelp

    Go to company page Amazon

    DeOppHelp
    DD is a failure ., never made profit ..

    After pandemic revenue will come down drastically

    I got DD offer and rejected ..

    Job security matters than TC
    Mar 25 10
    • @spongebob, I may not be an expert, the numbers i quoted are from your annual report. I double checked those.

      I am here to learn and understand the business. I am pretty sure that there's something I am missing as has been pointed out by many. Unfortunately no one has shown what I am missing, including you.

      If you understand the business, I am all ears. I would also like to know where you are getting the 500M number.
      Mar 27
    • what do you want to know exactly? Go look at the operations statement & non-gaap financial measures in the earnings report. You can see revenue, cost of revenue, and sales & marketing breakdown. Alternatively, spend an hour listening to any earnings webcast. Management always explains the basics
      Mar 27
  • Cisco
    booo boo

    Go to company page Cisco

    booo boo
    Because delivery and rides are completely different business models. And don’t forget the difference in volume of orders and rides.
    Mar 25 2
  • Doordash is profitably on EBITDA basis, aka operationally profitable. Yes, we charge merchants a fee to offset most of the dasher payment.
    Mar 25 0
  • Amazon
    fdwer34f

    Go to company page Amazon

    fdwer34f
    Doordash has partnerships with banks, not sure if they make money from that. Sometimes (not often) there's multiple deliveries per ride. I saw yesterday he was dropping off someone else's food before mine. I'm guessing DD is pretty good about routing. I don't use Uber much but the few times I have it's been quite slow.
    Mar 26 0
  • Amazon
    carrotleaf

    Go to company page Amazon

    carrotleaf
    They need to deliver with small robots. Or they'll never make profit.
    Mar 25 0