The chief executive officer and co-founder of DoorDash was facing various challenges. Based in San Francisco, California, DoorDash was the market leader in the US food delivery services industry. In December 2020, despite ongoing losses, the start-up launched the largest initial public offering of the year in the United States. Market observers believed that intense competition in the US food delivery services industry and DoorDash’s questionable business model fundamentals would make profitability difficult to achieve. Restaurants were raising objections to food delivery platforms, seeing their profits shrink due to commissions paid to them. Consumers were paying at least 40 per cent more on orders made through an online delivery platform compared to self-pickup. However, during the COVID-19 pandemic, consumer demand for food delivery services increased and DoorDash reported a profit for the second quarter of 2020. DoorDash was expanding rapidly, after several rounds of funding. Could the co-founder prove critics wrong about the business fundamentals of his food delivery platform? How could he create a sustainable profit for DoorDash?
多达世：寻求盈利 DoorDash: In Search of Profitability (Simplified Chinese version)
Arpita Agnihotri, Saurabh Bhattacharya
Product #:W33776
Supplier:Ivey
Discipline:Entrepreneurship, Strategy
Setting:United States, 2020
Subjects:
Industries:
Geography:
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Learning Objectives
- 批判性地分析企业如何为多个利益相关者创造价值；
- 研究以平台为媒介的商业模式的基本原理;
- 了解由于闪电式扩张战略而导致的初创企业估值过高;
- 探索让公司在竞争激烈的行业中盈利的方法。
This case is intended for courses at the undergraduate or graduate level in business strategy, strategic management, creativity and innovation, and entrepreneurship. The case discusses the profitability challenges of companies in a highly competitive industry, where all stakeholders incur high costs due to a platform-mediated business model. The case further highlights how a company can become profitable through innovation and imitation strategies. After working through the case and assignment questions, students will be able to • critically analyze how a business creates value for multiple stakeholders; • examine the business model fundamentals of a platform-mediated business model; • understand the overvaluation of start-ups due to a blitz-scaling growth strategy; and • explore ways to make a company profitable in a competitive industry.