Oct 21, 2014

DOORDASH FOOD DELIVERY STARTUP STORY

TAGS: , STARTUP, STORY, IDEA, SEQUOIA, On-Demand Delivery Service, DOORDASH, FOOD, DELIVERY, NETWORK,


DOORDASH FOOD DELIVERY STARTUP STORY


Doordash is a delightful food delivery in Silicon Valley, Los Angeles, Boston, and Palo Alto, California. DoorDash enables small businesses to provide its customers with local delivery services. Doordash builds an on-demand delivery network for local cities.

What Problem did Doordash founders see ?
When they were thinking about "How to build technology for small business" they happened to meet a small business owner to understand her problems and out of experiments got introduced to a new problem "DELIVERY" and started focussing on it.

How did Doordash test the Hypothesis of their IDEA?
The team spent an afternoon and created a simple experiment with Restaurant delivery and put a quick landing page and  stuck up some pdf menus found on internet put their cell number and launched the website named Paloaltodelivery.com. The first customer ordered a Thai Food and learned how the delivery thing works without drivers and algorithms, rest is the below story.

FREE TOOLS USED BY DOORDASH IN THE BEGINNING
  • SQUARE to charge all of Doordash customers
  • Google Docs to track the orders
  • Apple Find My Friends to track the drivers

FUNDS RAISED TO SCALE DOORDASH
Raised $17.3 million Series A round of funding led by Sequoia with some other big VCs participation.

How does DoorDash founders pitch their company ?
“We don’t consider ourselves a food-delivery company, but a tech and logistics company that just happens to deal in food,” co-founder Stanley Tang says. “We’re building out the technology and infrastructure to become a super reliant and efficient delivery network.”

Why did Sequoia invest in DoorDash Startup ?
It's the growth and consumer response that led Sequoia to invest in Doordash. Also
  • Sequoia got rave reviews from Doordash customers and retailers they serve. 
  • Customers seem to love DoorDash
  • One in six households in the area has ordered from it
  • Sequoia sees great opportunity in on-demand delivery space
What are key systems to run Doordash business?
  • A Dispatch system that self-learns and adapts to different variables based on driver inventory
  • Time of day and expected demand. 
  • A capacity-planning algorithm to ensure that it has the right number of drivers available at any given time.
  • Built Smart technology around restaurant preparation time - so that Drivers don't show up too early or too late.
  • Uses driver-routing algorithm for taking the smartest route between shops and a customer’s home.
What future Startups should learn from Doordash?
  • Test  your hypothesis
  • Launch Fast
  • Do things that don't scale
Doordash Competitors in Food Delivery space
Sprig
Spoonrocket
Caviar
Postmates
Munchery


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