Have you ever wondered how food delivery apps like DoorDash actually make money?
How do they earn Money? Do they earn from restaurants, customers, or the riders who deliver the food? DoorDash has become one of the popular food delivery platforms in the United States. Behind the simple app experience, there’s a smart DashDoor business model that helps the company earn money from different sources. By partnering with nearly 80% of the US restaurants, DoorDash has become a major player in the market.
DoorDash’s highly successful business model is projected to reach an impressive $320 billion in revenue by 2029. Beyond just understanding what makes DoorDash unique, we’ll also look at the strategies a mobile app development company in Houston can use to build an app just as successful.
In this blog, we’ll explain how DoorDash works, how it earns revenue, and how drivers also make money from the platform.
The DoorDash Business Model: An Overview
DoorDash’s story began in 2013, when four Stanford University students were working on a project for a small business. They initially launched a simple website called PaloAlto.Delivery.com; later, the name was changed to DoorDash.
Today, DoorDash partners with thousands of restaurants, grocery stores, and even convenience stores, beating Uber Eats and Grubhub. It not only delivers food, but also drinks, groceries, and household essentials.
The DoorDash business model is based on a three-sided marketplace:
- Customers: People who order food or groceries through the app.
- Restaurants and Stores: Businesses that partner with DoorDash to reach more customers.
- Dashers (Drivers): Independent contractors who pick up and deliver the orders.
DoorDash connects all three groups using technology. But the question is still there that how does DoorDash make their money from this model? Let’s break it down.
The Business of DoorDash: How the App Earns Its Billions
How does DoorDash make a profit from multiple sources? It doesn’t rely on just one way to earn. Here are the main ways:
- Commissions from Restaurants
For every order placed through the app, restaurants pay commission to DoorDash. This commission is usually between 15% to 30% of the order value. This is one of the main revenue streams for the company. This helps restaurants reach more customers, but the fee can be high for small businesses.
- Delivery Fees from Customers
When an order is placed, customers pay the delivery fees for it. These fees vary depending on the distance, restaurants, and current demand. This fee directly goes to DoorDash and is a big part of how DoorDash makes a Profit.
- Service Fees
In addition to delivery charges, customers often have to pay a small service fee. This helps DoorDash cover operational costs like customer support, payment processing, and app maintenance.
- Advertising and Promotions
Restaurants can pay DoorDash for extra visibility on the app. For example, a restaurant might pay extra to appear at the top of the search results or to run special promotions. This advertising revenue adds another layer to the DoorDash Business model.
- Subscription Plans (DashPass)
By introducing a subscription service called DashPass, DoorDash also makes money. By paying a monthly fee (around $9.99), customers can get free delivery and reduced service fees on eligible orders.
- Software as a Service (SaaS) Revenue Model
With its SaaS storefront, DoorDash helps restaurants build their own ordering platform, allowing them to manage their delivery and pickup business directly.
- Partnerships with Stores and Groceries
DoorDash now works with grocery chains and convenience stores. These businesses also pay commissions and fees to be listed on the platform, helping DoorDash expand beyond just restaurants.
According to StockAnalysis.com, in the quarter that ended on June 30, 2025, DoorDash’s revenue grew by 24.87% to reach $3.28 billion.
Over the last twelve months, the company’s revenue totaled $11.90 billion, marking a 23.78% increase year-over-year.
For the complete year 2024, DoorDash reported an annual revenue of 10.72% billion, showing a 24.17% growth.
How Do You Make Money with DoorDash?
If you’re not just curious about the company but also wondering how you actually make money with DoorDash as a driver, here’s how it works:
- Base Pay: DoorDash pays drivers a base amount for each delivery. This depends on distance, time, and the size of the order.
- Tips: Customers can give tips to drivers through the app or in cash. Tips are a major part of the driver’s income.
- Promotions: DoorDash sometimes offers extra bonuses. For example, drivers may earn more during peak hours or if they complete a set number of deliveries.
While the company makes money from fees and commissions, drivers also have the chance to earn by completing deliveries.
Why is DoorDash so Successful?
DoorDash grew quickly because it focused on convenience and choice. Customers love having many restaurant options and fast delivery. Restaurants like the extra orders without disturbing and managing their own delivery staff. Drivers like the flexibility of work, whenever they want.
By keeping all sides of the marketplace satisfied, the DoorDash business model has been able to scale across cities and even countries.
The Future of DoorDash
DoorDash is expanding beyond just food delivery. It is moving into groceries, convenience items, and even alcohol delivery. By diversifying services, it can reach more customers and earn more revenue.
The company is also investing in new technology like drones and robots for delivery. Many delivery platforms also rely on cross-platform solutions to scale. Skilled React Native App developers can build apps that run smoothly on both iOS and Android, just like DoorDash. These innovations may lower costs and increase profit in the future.
FAQs
Q: How does DoorDash actually make money?
A: By taking a commission from restaurants on each order and by adding delivery and service fees that customers pay. They also make money from subscription plans like DashPass and by offering advertising options for restaurants to get more exposure.
Q: Do Dashers (drivers) get paid from DoorDash’s profits?
A: Yes, they earn from the delivery fees and tips that customers give. But keep in mind, Dashers are independent contractors, so they only make money when they complete an order.
Q: If I want to make money as a DoorDash driver, how do I do it?
A: Just sign up as a Dasher! Once approved, you get paid for every delivery you finish. And of course, you can earn tips directly from the people you deliver to.
A Final Word
Getting commissions from restaurants, charging delivery and service fees to customers, offering subscription plans like DashPass, and even earning from advertising, all these bits together make the DoorDash business model pretty solid and adaptable. And it’s not just the company benefiting; drivers also make money through base pay, tips, and special promotions. The platform really creates opportunities for drivers while also generating revenue for the business. Even though there are still some challenges, DoorDash keeps on growing by branching out into new markets and making life easier for customers.
What started as a simple idea, to connect restaurants, people, and drivers, has now turned into a billion-dollar enterprise. And with more people opting for delivery each year, the future looks really bright for DoorDash.
