DoorDash can now deliver fine caviar service from Carbon and pastrami sandwiches from Katz’s Delicatessen, even if you live far from either of these places: fresh flowers delivered thousands of miles away. The company’s new nationwide shipping offering appears to be an initiative aimed directly at the neck of Goldbelly, which delivers culinary icons like fresh lobster rolls from Clam Shack in Kennebunkport, Maine, and Breast of Austin’s famous Franklin Barbecue since its founding in 2013.
Goldbelly has ostensibly proved that food junkies are willing to pay over $ 100 for an order of Russ & Daughters bagels wrapped in dry ice and distributed across the country by FedEx. As a result, the service was readily greeted in the hospitality industry by a number of leading restaurateurs including Danny Meyer, whose investment company acquired a stake in Goldbelly in 2018; in 2020 during pandemic shutdowns, the site reported a 300% year-over-year increase in business, leveraging an additional $ 100 million in funding earlier this year. With more and more customers accustomed to the idea of ââshipping restaurant food across the country (Goldbelly also claims the pandemic drew a million new customers in 2020), DoorDash is now looking to gobble up some of that. tart.
Following its 2019 acquisition of the delivery app Caviar, DoorDash controls a substantial majority of the US food delivery market: According to an analysis conducted by Bloomberg, about 57 percent. In contrast, its closest competitor, UberEats, only controls around 26% of the market, and that includes the share it gained when it fell more than $ 2 billion to acquire Postmates in 2020. C ‘is a pretty dramatic change from 2018, when Grubhub (which also owns Seamless) controlled more than half of the market.
The addition of nationwide delivery gives DoorDash even more power. Now he can encourage restaurants to use his platform exclusively – Katz’s Delicatessen and Carbone, for example – with added value that UberEats simply cannot deliver. It’s clear the company is continuing these exclusive deals as well – Cake Boss star Buddy Valastro is baking a ‘Sweet Potato Pie Dream Cake’ that will only be offered through the shipping platform. National DoorDash. If DoorDash attracts enough restaurants to go national, users might get used to using its app for all of their food and gift delivery needs.
What is less certain, however, is the impact of this decision on long-term food delivery. Nationwide shipping may give DoorDash an even tighter grip on the market. It’s also possible that the company decides that shipping Lou Malnati’s pizza from Chicago to Connecticut is a more profitable business model than restaurant delivery.
But he faces an uphill battle. Goldbelly has already secured its place in the market with a very extensive line of restaurant vendors across the country. Goldbelly has more than 850 restaurants on its platform, compared to 100 for DoorDash. His customer service is revered, while DoorDash has inspired literally thousands of negative reviews on sites like Reddit, SiteJabber, and the Better Business Bureau.
Speaking of terrible reviews, it’s a bit confusing why DoorDash thinks restaurants would want to work with them more. At first glance, the promise of nationwide delivery seems like a solid option. Locally loved places and tourist traps can sell their wares to a whole new audience of shoppers, which is especially interesting in an age when profits are scarce than ever.
It only works, however, if restaurants genuinely believe that DoorDash can improve their business, and at the moment, they just don’t have that faith. The company has treated independent restaurateurs like absolute rubbish in recent years, charging them exorbitant fees and selling their products without permission. Why, now, would these establishments trust DoorDash to ship their signature dishes across the country when, frequently, the still not profitable the business can’t even place an order across town without a problem?
Update, November 10, 2021, 2:45 p.m.: This article has been updated to reflect the fact that DoorDash currently has 100 partner restaurants in its national shipping program.