![This is Zack Fuss, an investor at Irenic Capital. We will discuss how DoorDash is working to build the infrastructure for local commerce; expanding its offering beyond restaurants, introducing a vertically owned convenience channel, ghost kitchens, and advertising to build a durable competitive advantage and work towards a sustainably profitable business model.<br /><br />Our guest is Matt Newberg of HNGRY.tv. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here: https://www.joincolossus.com/episodes/77193239/newberg-doordash-looking-for-profitable-routes<br /> -----<br /> <br /> This episode is brought to you by Tegus. Tegus is the new digital hub for market intelligence. The Tegus platform empowers Investors and Corporate Development teams to invest smarter by pairing best-in-class technology with the highest quality user-generated content and data. Find out why a majority of the top firms are using Tegus on a daily basis. If you're ready to go deeper on any company and you appreciate the value of primary research, head to tegus.co/breakdowns for a free trial.<br /> <br /> -----<br /> <br /> Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes.<br /> <br /> Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.<br /> <br /> Follow us on Twitter: @JoinColossus | @patrick_oshag | @jspujji | @zbfuss | @ReustleMatt<br /> <br /> Show Notes<br /> [00:00:00] - Introduction<br /> [00:02:52] - [First question] - The size and scale of DoorDash and the industry today <br /> [00:04:35] - Early growth and business history<br /> [00:08:33] - Unit economics of a DoorDash order<br /> [00:11:37] - Creative ways DoorDash is maintaining margins and driving growth<br /> [00:13:33] - Optimizing delivery operations to minimize overhead<br /> [00:16:45] - White-labeling versus first-party logistics<br /> [00:20:03] - How restaurants maintain their own margins and customers while using DoorDash<br /> [00:23:04] - Overview of their recruitment and labor model for delivery drivers<br /> [00:24:36] - Implications of new legislation treating delivery drivers as employees<br /> [00:27:51] - Positive and negative impacts of DashMart, ghost kitchens, and automation<br /> [00:30:53] - The importance of ghost kitchens and how they work<br /> [00:36:23] - Automation and its role at DoorDash<br /> [00:39:15] - Virtual brands in the restaurant industry<br /> [00:43:18] - Advertising sales models on DoorDash and similar apps<br /> [00:45:20] - What ads look like on these apps<br /> [00:46:22] - How grocery store profits from slotting fees translate to delivery<br /> [00:47:33] - Main takeaways from studying DoorDash as a business<br /><br />#businessbreakdowns #doordash #podcast](https://media.thebusinessprofessor.com/wp-content/plugins/youtube-feed-pro/img/placeholder.png)
This is Zack Fuss, an investor at Irenic Capital. We will discuss how DoorDash is working to build the infrastructure for local commerce; expanding its offering beyond restaurants, introducing a vertically owned convenience channel, ghost kitchens, and advertising to build a durable competitive advantage and work towards a sustainably profitable business model.
Our guest is Matt Newberg of HNGRY.tv.
Show Notes
[00:00:00] – Introduction
[00:02:52] – [First question] – The size and scale of DoorDash and the industry today
[00:04:35] – Early growth and business history
[00:08:33] – Unit economics of a DoorDash order
[00:11:37] – Creative ways DoorDash is maintaining margins and driving growth
[00:13:33] – Optimizing delivery operations to minimize overhead
[00:16:45] – White-labeling versus first-party logistics
[00:20:03] – How restaurants maintain their own margins and customers while using DoorDash
[00:23:04] – Overview of their recruitment and labor model for delivery drivers
[00:24:36] – Implications of new legislation treating delivery drivers as employees
[00:27:51] – Positive and negative impacts of DashMart, ghost kitchens, and automation
[00:30:53] – The importance of ghost kitchens and how they work
[00:36:23] – Automation and its role at DoorDash
[00:39:15] – Virtual brands in the restaurant industry
[00:43:18] – Advertising sales models on DoorDash and similar apps
[00:45:20] – What ads look like on these apps
[00:46:22] – How grocery store profits from slotting fees translate to delivery
[00:47:33] – Main takeaways from studying DoorDash as a business
#businessbreakdowns #doordash #podcast