Top 5 DoorDash Alternatives & Competitors

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Tony Xu, Stanley Tang, Andy Fang, and Evan Moore founded the online food ordering and delivery service DoorDash in 2013. Users can look up and order food and beverages from nearby restaurants using the company’s web and mobile platforms, which are based in San Francisco, California. DoorDash went public and began trading on the New York Stock Exchange in December 2020. But it made a weak debut.

Restaurants can now advertise on top of search results on DoorDash’s app thanks to the launch of its own advertising platform in September 2021. This advertising venture attracted investors and increased the price of DoorDash by nearly 10% in just five trading days.

The business generated $2.886 billion in revenue in 2020 and increased its forecast for the gross order value in 2021 to $35 billion to $38 billion. Currently, DoorDash has 7,550 employees and owns 56% of the US market for food delivery.

Customers of DoorDash can place orders for drinks, groceries, and prepared meals from more than 300,000 neighborhood cafes, shops, and grocers. DoorDash’s fleet of independent delivery personnel, known as Dashers, deliver orders placed through the service. Therefore, to fulfill orders, restaurants do not need delivery drivers.

Three plans are available through DoorDash: DoorDash Basic (15%), DoorDash Plus (25%), and DoorDash Premier (30%). For greater exposure and a wider audience, restaurants on DoorDash pay for Plus and Premier and set their own menu prices. However, DoorDash faces tough rivals like UberEATS, Postmates, GrubHub, and Instacart.

The top rivals and alternatives to DoorDash are detailed below:

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Uber, the industry leader in ride-hailing, provides Uber Eats, with a food delivery service. Both DoorDash and Uber Eats offer round-the-clock food delivery. However, DoorDash has 2,450 fewer employees than Uber eats. With a $4.8 billion annual revenue as of March 2021, Uber Eats controlled 22% of the US food delivery market.

1. Uber Eats

The link to Uber’s taxi service gives Uber Eats a significant competitive edge over DoorDash. The platform’s seamless integration with Uber gives millions of riders worldwide easy access. Customers can place an immediate order for specific meals and ingredients or place a week’s worth of preorders.

Additionally, DoorDash is more expensive than Uber Eats. Users only pay $2 for orders under $10 and $3 for orders over $15. The main rival to DoorDash and substitute is Uber Eats.

2. Postmates

Food delivery service Postmates is well known for its “deliver-everything” ethos. The business ships food, booze, and everything else from more than 600,000 restaurants across the US. Postmates made $500 million in sales in 2020.

Over all of its rivals, Postmates and DoorDash have the longest-running competition. In an effort to compete with UberEATS in 2018, DoorDash tried to merge with Postmates. When Postmates rejected the offer, DoorDash was compelled to buy Caviar from Square in 2019. Uber’s request for $2.65 billion in the acquisition by Postmates was approved in 2020.

Gains from DoorDash’s acquisition of Caviar were diminished by this action. In 2023, Postmates projects that its revenue will increase from $909 million in 2021 to $1.3 billion. Postmates has sufficient financial resources to compete with DoorDash because it is an Uber subsidiary.

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3. GrubHub

An online and mobile platform for ordering and receiving food is called GrubHub. Using tech-driven processes, the company fulfills more than 745,000 orders every day. GrubHub employed 2,773 people in 2021 and generated more than $500 million in quarterly revenue.

GrubHub’s customer-focused pre-order service is the main benefit over DoorDash. In order to provide customers with the utmost convenience, the company combines its expertise in Internet software and food service. Customers can follow their orders all the way from AAPI-owned restaurants to their doorstep in real-time.

In 2021, Resort World Las Vegas, the Washington Football Team, and Yandex joined forces with GrubHub to form Just Eat Takeaway. Strategic alliances like these will boost GrubHub’s advantage over rivals. Seamless, Eat24, BiteGrabber, LevelUp, Tapingo, and OrderUp are among the companies in its portfolio. One of the top DoorDash substitutes is GrubHub.

4. Seamless

Food delivery and takeout orders are made simple by Seamless. Since their merger in 2013, the business has been a part of GrubHub’s portfolio of brands. With more than 2 million US users, Seamless is a major player in the food delivery industry.

More than 4,000 businesses use Seamless’ partnerships with more than 12,000 restaurants. For customers, Seamless redefined the takeout experience in April 2021 by launching a program to support its restaurant partners.

The company converted a number of trucks into mobile eateries. These mobile restaurants brought the dining experience right to customers’ doors rather than delivering food. Because of its creativity, Seamless is a legitimate rival to DoorDash.

5. Instacart

Online delivery and pick-up services for food and groceries are offered by Instacart. The business has strategic alliances with the top retailers, including Walmart, Aldi, Whole Food Market, Kroger, Publix, and Costco, and more than 500,000 active customers. Instacart was valued at $39 billion in March 2021.

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America’s top online grocery retailer is Instacart. But because it also provides food delivery service, the grocery store competes with DoorDash. More than 5,500 North American cities are served by Instacart, which also intends to build automated fulfillment facilities to process orders more quickly.

Over 700 orders will be processed daily by 150 robots at each facility. The most creative DoorDash rival and substitute are Instacart.


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