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