DoorDash Accused Of Steering Customers Away From Nonparticipating Restaurants

Does DoorDash set up fake landing pages for restaurants in an effort to steer customers to preferred restaurants? That is the basis of a potential class action lawsuit filed by Lona’s Lil Eats, a St. Louis Asian fusion restaurant. The suit, originally filed in September in the United States District Court for the Northern District of California, where […]

DoorDash Has All The Makings Of The “Next Amazon”

Amazon’s future looked bleak after the tech bubble burst earlier that year. The online shopping pioneer was hemorrhaging cash, forcing it to cut 15% of its workforce. Top fund managers cut Amazon from their portfolios. And over the following year, its stock price sank from $105 to $5. In 2000, Amazon was a small online store selling […]

DoorDash’s Restaurant Advisory Council Gives Honest Feedback

DoorDash, the largest U.S.-based delivery platform, publicly announced the launch of its Restaurant Advisory Council, which is an ongoing program to gather feedback from restaurant operators on platform functionality, policy matters, future products and even the hot-button topics of delivery fees and customer data. The Restaurant Advisory Council, which was first assembled last summer, included […]

DoorDash Is Hiking Customer Fees to Pay for a Law It Helped Write

In the months since a coalition of app-based gig companies successfully passed Prop 22 in California, exempting themselves from reclassifying their workers as employees, DoorDash has been silently passing costs onto consumers. The company-funded Yes on Prop 22 campaign claimed that not passing the ballot initiative would result in higher prices for consumers, and in early December, […]

DoorDash Launches DasherDirect Banking for Drivers

DoorDash and Payfare have announced the launch of the DasherDirect platform, a banking platform for DoorDash delivery drivers that includes mobile banking and prepaid Visa cards for its Dashers. This marks DoorDash’s first-ever financial platform for Dashers, and the company says this provides its drivers with “new rewards and more flexibility and control over their […]

BURMA BITES, THE BAY AREA CONCEPT DEVELOPED WITH DOORDASH, IS ALREADY A BIG HIT

A couple of years ago, Burma Superstar was faced with one of those problems most restaurants would love to have: It was too popular. Its four full-service concepts in the Bay Area were operating at capacity, with customers regularly lined up out the door for its signature tea leaf salad and other Burmese specialities. And then […]

DoorDash takes a hefty cut from restaurants, and risks losing them to cheaper options

DoorDash’s commissions, which can reach 30% of an order, are too high for many restaurants to bear. The company’s revenue growth reached 268% in the third quarter as more restaurants turned to delivery to stay in business. “I’d rather spend those marketing dollars to get people directly,” said Salvatore Reina, owner of three Francesca pizzerias […]

DOORDASH TESTS NEW WAYS TO OFFSET COMMISSION CAPS

As governments across the country clamp down on third-party delivery services by limiting what they can charge restaurants, the largest of those companies is testing ways to offset the impact of the caps. In the past month, DoorDash introduced extra fees for consumers in Denver and Chicago. It also announced—and quickly abandoned—a plan to raise fees […]

DoorDash delivers 86% gain in stock market debut

DoorDash shares soared in its initial public offering Wednesday, capping a year of explosive growth for the food delivery company. What’s not yet clear is whether DoorDash can keep the momentum going even if delivery demand eases in a post-pandemic world. The San Francisco-based company raised $3.4 billion in the offering, making it the second […]

DoorDash: The Most Ridiculous IPO Of 2020

Is it a coincidence that DoorDash (DASH) filed for its IPO so soon after vaccines for COVID-19 were announced? I think DoorDash’s current investors and bankers recognize that the window of opportunity to IPO this terrible business closes quickly when the threat of COVID-driven lockdowns no longer drives growth in food delivery demand. With the latest S-1 […]