DoorDash the king of third-party delivery

Staff at a restaurant hands a DoorDash driver a bag with DoorDash's logo on it.

Written by James Shea

A recent analysis by banklesstimes.com found that DoorDash has started to dominate the third-party food delivery market. The organization found that DoorDash controls 53% of the third-party delivery market. That is up from 16% in 2018.

The other two major third-party delivery companies — Uber Eats and Grubhub — control 26% and 12% respectively. While the third-party delivery companies have seen some consolidation, DoorDash has become a dominant player in the market.

Banklesstimes.com cites several factors for DoorDash’s growth.

• A comprehensive approach to capturing the market.

• Extension of the company’s reach. It grew heavily in several major markets.

• Superior technology.

• A large fleet of drivers.

DoorDash started in 2014 as a delivery company for small restaurants. The company raised $17.3 million from Sequoia Capital in 2014 and went public last year. DoorDash has aggressively moved into new markets besides restaurants. It offers grocery delivery and has partnered with several pharmacies and convenience stores.

DoorDash is also exploring operating a restaurant. It has several ghost kitchen locations and has partnered with several brands. It has also purchased several companies recently including Bbot, an online ordering platform.

Despite the growth, DoorDash has had a difficult time achieving profitability. The company saw a net loss of $468 million for 2021.

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