Author : Dazy John | Published On : 24 May 2024

DoorDash, Inc. is a San Francisco-based company that offers an online platform for food ordering and delivery services in the US. Doordash phone number The company is publicly traded under the symbol DASH and currently holds a 56% market share in the food delivery industry, making it the largest food delivery company in the United States. It also has a 60% market share in the convenience delivery category. The platform is used by 450,000 merchants, 20,000,000 consumers, and one million delivery couriers as of December 31, 2020. However, DoorDash has faced several criticisms and lawsuits, including withholding tips, reducing transparency in tipping, antitrust price manipulation, listing restaurants without permission, and allegedly misclassifying workers.

The idea for DoorDash originated from Stanford University students Tony Xu, Stanley Tang, Andy Fang, and Evan Moore in late 2012. They were developing a mobile app for small business owners and discovered a macaroon store owner who faced challenges in meeting the demand for deliveries. In January 2013, they launched in Palo Alto, California, with seed funding of US$120,000 from Y Combinator in exchange for a 7% stake. It was incorporated as DoorDash in June 2013.

Doordash phone number

In December 2018, DoorDash surpassed Uber Eats to become the second-largest food delivery service in the US, behind GrubHub. By March 2019, it exceeded GrubHub in total sales, capturing 27.6% of the on-demand delivery market. DoorDash maintained its position as the largest food delivery provider in the US in 2019.

DoorDash also opened its first ghost kitchen, DoorDash Kitchen, in Redwood City, California, in October 2019, with four restaurants operating at the location. In January 2020, reports surfaced that DoorDash had been skimming tips from its drivers, causing them to earn an average of $1.45 an hour after expenses. Despite overhauling its tipping system, the company was still allegedly manipulating per-delivery payouts, causing drivers to lose out.

Without the permission of restaurants in May, DoorDash faced criticism when it listed them on its app. Lona’s Lil Eats in St. Louis filed a lawsuit against the company for listing them without authorization and redirecting customers to other restaurants instead of allowing them to place orders. The reason given by DoorDash was that Lona’s was “too far away,” but in reality, the restaurant had not paid DoorDash a listing fee. In California, DoorDash’s implementation of this business practice is considered illegal.