In the age of convenience, on-demand services are thriving. Food delivery, in particular, has seen explosive growth, and companies like DoorDash have become household names. If you’ve ever wondered how to start a business like DoorDash, you’re in the right place.
Creating a food delivery app like DoorDash involves more than just an app—it’s about building a reliable, scalable, and user-friendly ecosystem that serves restaurants, delivery drivers, and hungry customers. Let’s break down what it takes to launch a successful app like DoorDash and how you can replicate its success with your unique twist.
Table of Contents
- Understanding the DoorDash Business Model
- Market Research & Niche Selection
- Legal & Business Setup
- Building the App Infrastructure
- Must-Have Features for a Food Delivery App Like DoorDash
- Partnering with Restaurants
- Recruiting Delivery Drivers
- Monetization Strategies
- Marketing & Launch Strategy
- Scaling Your Business
- Common Challenges & How to Overcome Them
- Final Thoughts
1. Understanding the DoorDash Business Model
Before learning how to start a delivery business like DoorDash, it’s important to understand its three-sided marketplace:
- Customers use the app to browse menus, place orders, and pay online.
- Restaurants receive the order and prepare the food.
- Dashers (Delivery drivers) pick up the food and deliver it.
DoorDash earns revenue through:
- Delivery fees from customers
- Service fees or commission from restaurants
- Subscription plans (like DashPass)
You’ll need to replicate this multi-sided model when building your own app like DoorDash.
2. Market Research & Niche Selection
A saturated market doesn’t mean there’s no room for innovation. Start by analyzing your local food delivery market:
- Who are your competitors?
- What types of cuisine are underserved?
- Are there underserved areas with poor delivery coverage?
You might find success targeting a specific niche—like vegan food, late-night snacks, or high-end cuisine—before expanding.
3. Legal & Business Setup
a. Choose a Business Model
Decide if you’ll run a logistics-only platform (just deliveries) or an all-in-one platform (ordering + delivery + customer service).
b. Register Your Business
Get your licenses and business registration in order:
- LLC or Corporation
- Business license
- Employer Identification Number (EIN)
c. Insurance & Compliance
Make sure you have:
- General liability insurance
- Commercial auto insurance for drivers
- Compliance with local food and health regulations
4. Building the App Infrastructure
This is where things get technical. To create a food delivery app like DoorDash, you need a well-designed, scalable, and intuitive platform.
a. Decide on Development Approach
- Custom development (more expensive but tailored to your needs)
- White-label solutions (faster and cheaper, but less flexibility)
- No-code platforms (great for MVPs)
b. Assemble a Tech Team
If building from scratch, you’ll need:
- UI/UX Designers
- Frontend and Backend Developers
- Mobile App Developers (iOS & Android)
- QA Testers
- Project Manager
c. Technology Stack
For a scalable app like DoorDash, consider:
- Frontend: React Native, Flutter
- Backend: Node.js, Django
- Database: PostgreSQL, MongoDB
- APIs: Google Maps API, Stripe API for payments
- Cloud Hosting: AWS, Google Cloud
5. Must-Have Features for a Food Delivery App Like DoorDash
You’ll need different apps/interfaces for each stakeholder:
a. Customer App
- Sign up/login
- Browse restaurants & menus
- Order tracking
- Multiple payment options
- Ratings & reviews
- Real-time notifications
b. Restaurant Dashboard
- Menu management
- Order alerts
- Payment tracking
- Sales analytics
c. Delivery Driver App
- Route optimization
- Order pickup/drop-off management
- Earnings tracker
- Availability toggle
d. Admin Panel
- User management
- Analytics dashboard
- Commission settings
- App content & policy management
6.Partnering with Restaurants
No delivery business can exist without a solid roster of restaurant partners.
a. Create a Value Proposition
Explain how your platform will bring them:
- More orders
- Visibility
- Customer insights
b. Flexible Commission Models
Offer various pricing options like:
- Per-order commission
- Monthly subscription for unlimited orders
- Flat rate for promotions
7. Recruiting Delivery Drivers
Your delivery network is your engine. Focus on:
- Simple onboarding process
- Competitive pay structures
- Incentive programs (bonuses, flexible shifts)
- In-app training and support
Make sure to provide clear expectations on delivery time, customer service, and safety standards.
8. Monetization Strategies
You’re not just building a tech platform—you’re creating a business. Here are ways to generate income:
- Delivery Fees: Charged to customers per order
- Service Charges: A percentage of the order total
- Subscription Plans: Like DashPass for free delivery
- Ad Placements: Restaurants can pay to be promoted
- Surge Pricing: Higher fees during peak hours
9. Marketing & Launch Strategy
Even the best app like DoorDash won’t succeed without users. Start strong with a targeted launch strategy.
a. Pre-launch
- Tease the app with sneak peeks
- Build a waitlist
- Partner with influencers & food bloggers
b. Launch Promotions
- Free delivery for the first month
- Discounts with partner restaurants
- Referral bonuses for new users & drivers
c. Ongoing Marketing
- Social media ads
- Google Ads
- Loyalty programs
- Email marketing
10. Scaling Your Business
Once you’ve established your first city or region, it’s time to scale.
a. Expand Regionally
Use data to decide where to launch next. Focus on areas with high population density and few competitors.
b. Add New Services
Consider grocery delivery, alcohol delivery, or courier services to diversify.
c. Improve Tech Continuously
Keep optimizing your app based on user feedback and analytics.
11. Common Challenges & How to Overcome Them
a. Driver Shortages
Solution: Offer competitive pay, bonuses, and flexible hours.
b. Restaurant Onboarding
Solution: Simplify the sign-up process and offer initial free trials.
c. Technical Glitches
Solution: Regular testing, bug bounties, and a responsive tech team.
d. Customer Complaints
Solution: In-app customer support, refund policies, and prompt issue resolution.
12. Final Thoughts
If you’ve made it this far, you’ve got the basics of how to start a delivery business like DoorDash. The journey isn’t easy, but it’s full of potential. The key is understanding your market, building a reliable app, and providing exceptional service.
Whether you want to create a niche food delivery app like DoorDash or an all-encompassing app like DoorDash with custom features, the possibilities are wide open. Start with an MVP, focus on quality partnerships, and keep iterating based on real user feedback.
With the right strategy and persistence, your delivery business could become the next big thing in on-demand services.