How does DoorDash work? Everything to know about the food delivery app powered by gig workers

How does DoorDash work? Everything to know about the food delivery app powered by gig workers
DoorDash helps customers order food from restaurants that don't offer their own delivery service.Carlo Allegri/Reuters
  • DoorDash is an on-demand food delivery service that lets you order food and drinks from restaurants in your area.
  • When you order from DoorDash, your food is delivered by a freelance worker who doesn't belong to any single restaurant.
  • Since restaurants don't have to hire delivery drivers, DoorDash makes it easier for them to expand their delivery business.

DoorDash is an on-demand food delivery service that partners with local restaurants to deliver food to homes and businesses. However, due to the way that DoorDash orders are delivered, the app makes it easier for restaurants to get into the delivery business.

How DoorDash works

DoorDash operates in hundreds of cities, offering hyperlocal food delivery across the US. The company works with restaurants, letter them set menu prices, but controlling delivery and service fees themselves.

How does DoorDash work? Everything to know about the food delivery app powered by gig workers
DoorDash hosts a variety of different restaurants.Dave Johnson/Business Insider
The biggest difference between DoorDash and other apps is that orders placed through DoorDash don't make restaurants use their own delivery drivers. Instead, DoorDash has its own fleet of freelance delivery workers - they're called Dashers - who are paid through tips, a base salary from DoorDash, and by completing "challenges."
Advertisement
This makes it easier for restaurants to start a delivery business, since they don't have to hire their own delivery workers.

In the past, DoorDash would take some of their drivers' tips - they claim this is no longer the case. The company's been involved in other lawsuits regarding the alleged mistreatment of their workers.

Restaurants have to pay DoorDash to use their drivers and receive orders through the app. Depending on the specific relationship that a restaurant establishes with DoorDash, the restaurant may pay DoorDash a monthly fee, a flat fee per order, or a commission based on how much money they make.
Advertisement

These fees are used to pay Dashers, perform background checks on these Dashers, process credit card transactions, pay for advertising and marketing, and more.

DoorDash gives restaurants a choice about how they offer their delivery services. Storefront, for example, is a service that DoorDash offers that lets customers order from the restaurant's website, not just the app. DoorDash Drive is built for big orders, like catering platters, and lets restaurant handpick Dashers to help them make those large deliveries. And DoorDash also allows restaurants to rely on the app exclusively for all deliveries. For restaurant owners who want it, DoorDash also offers data analytics to help restaurants better understand their business and work more efficiently, as well as standalone tools like a net profit calculator for delivery sales. The DoorDash Merchant Portal lets restaurants track sales, adjust the menu, and track metrics like total sales, average order size, and most popular menu items.
Advertisement
How does DoorDash work? Everything to know about the food delivery app powered by gig workers
DoorDash offers a suite of services to help merchants run their business more efficiently.Dave Johnson/Business Insider

For customers, DoorDash has obvious value: it enables fast ordering and delivery for restaurants across the local area. Using the DoorDash website or mobile app, you can search for local restaurants, browse the menu freely, and track the order as the driver picks it up and brings it to you.

Not every restaurant offers their entire menu on DoorDash, however - the restaurant gets to choose their online menu. And since they don't manage their own delivery drivers, any issues you have with delivery will likely need to be taken up with DoorDash, not the restaurant.

Related coverage from Tech Reference:

{{}}