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

Publish date: 2024-02-12

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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.

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."

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.

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. 

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.

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Dave Johnson Freelance Writer Dave Johnson is a technology journalist who writes about consumer tech and how the industry is transforming the speculative world of science fiction into modern-day real life. Dave grew up in New Jersey before entering the Air Force to operate satellites, teach space operations, and do space launch planning. He then spent eight years as a content lead on the Windows team at Microsoft. As a photographer, Dave has photographed wolves in their natural environment; he's also a scuba instructor and co-host of several podcasts. Dave is the author of more than two dozen books and has contributed to many sites and publications including CNET, Forbes, PC World, How To Geek, and Insider. Read more Read less

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