Mentions in the media
Written by
Andrea Mercado
Writer
Fact-checkedby
David Mercado
Editor
Delivery apps have become ingrained in American life with no signs of fading. Spending on services like DoorDash averages over $400 monthly as convenience outweighs costs.1 In 2022 alone, U.S. food delivery sales approached $160 billion.2 But what is the actual market share of this platform, and what changes are coming to the app? Stay tuned as we reveal the most relevant and up-to-date DoorDash statistics for 2024. DoorDash is an on-demand delivery platform that connects customers to local restaurants, grocery stores, retailers, and more. By opening the DoorDash app or website, you can browse participating vendors in your area, select items to purchase, checkout, and await delivery to your provided address. Beyond just food, DoorDash now delivers everything from household essentials to beauty products to alcohol in minutes. DoorDash's fleet of contracted drivers, known as Dashers, pick up orders from merchants and drive to customers. This model allows anyone to become a Dasher on flexible schedules. Third-party delivery apps like DoorDash have become the preferred option for U.S. diners ordering takeout or delivery. According to recent data, 34% of consumers turn to third-party apps first when arranging food orders.3 In comparison, only 16% default to an online search, while 22% visit a restaurant's website or app first. Users flock to aggregator apps for the convenience, discount, and breadth of choice in one spot. Since its inception in 2013, DoorDash has facilitated over 5 billion consumer orders and driven more than $100 billion in sales for merchants.4General Statistics
What is DoorDash and How Does it Work?
How Popular are Apps Like DoorDash in The United States?
34% of U.S. Consumers Use Third-Party Apps Most for Food Orders
DoorDash Had 2 Million Monthly Active Drivers in 2023
The platform also has helped Dashers earn over $35 billion collectively, supporting over 500,000 merchants globally.
With a presence in over 25 countries, DoorDash has connected more than 32 million consumers with local favorites. Today, it provides flexible earning opportunities for 2 million monthly active Dashers in the U.S.
DoorDash Dominates the U.S. Food Delivery Market with 66% Share
DoorDash remains the dominant player in U.S. meal delivery. According to December 2023 data, DoorDash and its subsidiary Caviar accounted for 66% of food delivery sales.5
Uber Eats took second place with a 23% share. Including Postmates, acquired in 2020, Uber captured 25% overall.
Third place is for Grubhub and its brands like Seamless, which grossed 8% market share.
Meanwhile, smaller competitor ASAP trailed significantly, earning under 1% share before getting delisted from public markets in early 2023.
Latest DoorDash Corporate Statistics for 2024
In 2013, Stanford students Andy Fang, Tony Xu, and Stanley Tang founded DoorDash to tackle delivery challenges for local restaurants.6
Initially, only major chains like Pizza and Chinese provided delivery options.
Through testing PaloAltoDelivery.com, the founders confirmed the demand for on-demand food delivery, which led to the development of DoorDash's versatile logistics platform for all cuisine types.
Now, eleven years later, DoorDash is the largest local delivery provider in the U.S., handling orders for hundreds of thousands of merchants.
DoorDash's Q3 2023 Revenue Climbed 27% to $1.7 Billion
In Q3 2023, DoorDash's financial performance showed continued growth. The delivery app earned $1.7 billion in revenue, up 27% compared to the previous year.7
Total orders increased by 24% to 543 million, and gross marketplace volume reached $16.8 billion, marking a 24% growth. Significant increases in monthly active users and DashPass subscribers indicate strong user engagement.
Despite economic challenges, DoorDash experienced its most successful fiscal quarter to date.
DoorDash's Q3 2023 Net Loss was $75 Million
In Q3 2023, DoorDash reported a net loss of $75 million, marking a 74% improvement from the previous year's $296 million loss.8
Despite a 27% increase in revenue, cost expenses only rose by 24%.
While still operating at a net loss, the company maintained a steady percentage of gross marketplace volume for the cost of revenue at 6.9%.
DoorDash Trends for 2024
Lunch and Dinner Make Up Majority of DoorDash Orders
Analysis of DoorDash order data shows lunch (11 am-12 pm) and dinner (5 pm-7 pm) remained peak times for food delivery in 2023.9
However, late-night and breakfast orders saw significant growth compared to 2022.
Regarding preferences, when users try out new restaurants for delivery or pickup, they care most about the menu options (55%) and the prices (51%).
DoorDash Alcohol Deliveries Doubled Between 2022 And 2023
Alcohol delivery demand exploded for DoorDash in 2023, jumping 100% compared to the previous year.10
According to the company, 10% of American consumers now order alcoholic beverages online, with 60% increasing their usage.
Convenience is the key reason, with 42% preferring the ease of browsing and buying online.
Food Deliveries Surge Up to 25% on Major Holidays
Analysis of 2022 DoorDash data shows a significant surge in food delivery volume, with up to a 25% increase on holidays. Christmas Day ranked first, followed by New Year's Day and Mother's Day.11
According to a survey by the National Restaurant Association, over half of consumers opted for takeout or delivery during the holidays, seeking convenience and supporting local businesses.
Valentine's Day and other holidays like Veterans Day and Presidents Day also saw elevated order rates, as families opted for dining in.
Drivers vs. DoorDash? Here's How the Platform Will Have to Pay to Protect Its Dashers
DoorDash Sets a $10-$19.50 Pay Range for U.S. Drivers From Some Small and Midsize Cities
Seeking to address driver pay concerns, DoorDash launched a new minimum compensation system in 2023. Under this model, drivers can choose between getting paid per delivery or an hourly wage.12
The pay ranges from $10 to $19.50 per hour, depending on the region. However, this system doesn't apply in states or cities with laws governing gig worker pay.
DoorDash Adds $2 Fee for NYC Deliveries Due to New Worker Pay Laws
DoorDash now charges an additional $2 for all orders in NYC following the city's new minimum wage regulations for delivery workers. Similar fees may arise nationwide.13
This change responds to concerns over worker pay, but it also increases costs for customers. Seattle has also implemented similar rules, adding extra fees of up to $3.40 per order.
While addressing worker issues, these added fees spark debates over who should bear the burden of increased costs.
DoorDash Updates for 2024
50% of DoorDash Customer Calls Went Unanswered in 2023
DoorDash platform data revealed in late 2023 a missed revenue opportunity for restaurants. Despite 1 in 5 customers preferring phone orders, up to half of calls go unanswered due to understaffing.14
Considering 20-30% of orders come via phone, missing calls directly translates to lost sales.
DoorDash launched a new voice ordering technology to curb this issue in 2023. Powered by AI, the system fields calls to avoid wait times and pursue every sale. Humans step in to assist when needed.
Conclusion
Third-party delivery apps have become the top choice for U.S. diners, with 34% of consumers preferring these platforms over traditional online searches or restaurant apps.
DoorDash is the number one option in the U.S., commanding a 65% market share. However, after completing over 5 billion deliveries since 2013, the platform struggles to be profitable.
While revenue surged with increased customer adoption and merchant expansion, costs rose due to investments in logistics infrastructure and competition.
Additionally, new regulations mandating minimum wage for delivery workers add further financial strain. However, DoorDash introduced customer fees in affected cities to offset increased expenses.
FAQ
Where is DoorDash available?
DoorDash operates in numerous U.S., Canada, Australia, and New Zealand cities, including Washington, D.C., Puerto Rico, and over 80 cities and towns across Canada.
What do I need to use DoorDash?
To use DoorDash, you must be at least 18 and have an iPhone or Android smartphone.
However, as of January 16th, 2024, prospective Dashers in Delaware, Montana, and West Virginia must be at least 19 years old. If you are old enough, simply complete the sign-up process to get started.
What were the most ordered foods of 2023?
In addition to fries maintaining their position as the top-ordered food of the year and the past decade, 2023 saw a surge in popularity for finger foods.15
Customers indulged in items best enjoyed without utensils, such as mozzarella sticks, wings, pepperoni pizza, and chips & queso.
Summary
- 34% of U.S. Consumers Use Third-Party Apps Most for Food Orders
- DoorDash Had 2 Million Monthly Active Drivers in 2023
- DoorDash Dominates the U.S. Food Delivery Market with 66% Share
- DoorDash's Q3 2023 Revenue Climbed 27% to $1.7 Billion
- DoorDash's Q3 2023 Net Loss was $75 Million
- Lunch and Dinner Make Up Majority of DoorDash Orders
- DoorDash Alcohol Deliveries Doubled Between 2022 And 2023
- Food Deliveries Surge Up to 25% on Major Holidays
- DoorDash Sets a $10-$19.50 Pay Range for U.S. Drivers From Some Small and Midsize Cities
- DoorDash Adds $2 Fee for NYC Deliveries Due to New Worker Pay Laws
- 50% of DoorDash Customer Calls Went Unanswered in 2023
Sources
- Why are Americans spending so much on Amazon, DoorDash delivery long after COVID's peak?
- DoorDash Unveils What and How Consumers Have Been Eating and Drinking In 2023
- Introducing DoorDash’s Biggest App Updates in a Decade
- Which company is winning the restaurant food delivery war? - Bloomberg Second Measure
- American Dreamers: Andy Fang, Co-Founder Of DoorDash, On How A Class Project Turned Into A Massive Food-Delivery Service In America
- DoorDash Releases Third Quarter 2023 Financial Results
- DoorDash Unveils What and How Consumers Have Been Eating and Drinking In 2023
- Alcohol Delivery On the Rise, DoorDash Says - Food On Demand
- What are the Busiest Days for Restaurant Food Delivery? | DoorDash for Merchants
- DoorDash, Shifting Business Model, Will Offer Drivers Hourly Pay - The New York Times
- DoorDash increases NYC delivery fees following new minimum wage rules
- DoorDash launches AI-powered voice ordering technology for restaurants | TechCrunch
- Decade Delivered: DoorDash’s Dash From the Past 2023 Trend Report and a Look Back at Ten Years of Deliveries
Andrea Mercado
Andrea Mercado is a tech-focused journalist and copywriter with over 5 years of experience covering innovation, edtech, AI, and internet trends across media outlets. She is passionate about how technology can democratize access to education and is an avid learner when it comes to emerging tech like AI. Her articles and webinars help readers stay informed on the latest tech developments.
