The Business Model Of Like Uber

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DoorDash, like Uber, is an example of yet another “Peer-to-Peer” business model; this one takes orders and delivers food via company drivers. In other words, DoorDash takes food from restaurants and delivers it to the consumer, thereby eliminating the relationships between restaurants and clients. To that end, DoorDash operates not only as a customer acquisition company, but also as a logistics company focused on food delivery. DoorDash is disrupting the old way that food is delivered to customers by interjecting an intermediary. In addition, while DoorDash only focuses on food delivery at present, it plans to expand to non-food areas and use its logistical delivery infrastructure to deliver anything to anyone in the future. With great…show more content…
This model will help the company to become profitable in the future. Having a Strong Technical Team In the story of this company, its CEO Xu said, “to make one delivery successful there’s fifteen small things you have to get correct, which is shocking.” This is true because the company must consider every detailed problem like the most appropriate time to arrive at each restaurant. These optimization problems make it difficult to make delivery times more efficient and satisfactory to customers. To solve this problem, the company hires a team of engineers to build a high-functioning online system. This system allows DoorDash to obtain and keep customers and therefore obtain more business. A strong technical team is crucial for any peer-to-peer business model like DoorDash. Using Contract Workers Food delivery is not the same as other delivery service because it has limited peak times. Most food deliveries happen during mealtimes. Due to this fact, DoorDash uses contract workers instead of full-time employees. Therefore, it smartly and efficiently reduces the labor costs without hurting the quality of the service. Business Strategy: Making Money in the Long Run As mentioned before, DoorDash focuses on customer experience and consumer need in the short-term. According to its official website, it charges $6 per delivery, and the driver will receive a flat
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