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DoorDash coy on NZ entry

17th March 2022 By Staff Reporter | | @foodtickernz

Multi-billion dollar US food delivery service DoorDash is coy about its plans to enter the New Zealand market, despite advertising here for an establishment team.

DoorDash entered Australia in 2019 and is advertising for staff in New Zealand

In a response to questions from the Ticker about its expansion to New Zealand, San Fransisco-based international communications director Simran Kodesia said in a statement that DoorDash was evaluating new markets as part of its international growth strategy.

“International expansion is a growth priority for us, just as expansion into new categories and new use cases are,” Kodesia said.

“We have made solid progress in our international markets – Puerto Rico, Canada, Australia, Japan, and Germany – and we expect to invest further in these markets, and will evaluate others where we believe we can provide a unique value proposition to merchants, consumers, and [local delivery drivers] Dashers.”

However, “there is nothing to report at this time,” in respect of New Zealand.

The vacancies advertised on Linkedin include for a customer success manager, who would be in direct contact with business owners, a business development manager, strategic account manager and sales manager.

DoorDash, which had a valuation of US$60.2bn when it listed on the US Stock Exchange in 2020, would be following other aggregators into the New Zealand market including Uber Eats, Delivereasy and Menulog, which is the local arm of Dutch giant Just Eat Takeaway.

Menulog launched in New Zealand with a commission rate of 14% per delivery on the self-delivery service, rising to 30% for the full order and delivery service.

In the US, DoorDash has three pricing options for restaurant partners priced at 15%, 25% and 30% commissions depending on the service. A self delivery service commission is 6%.

It entered Australia in 2019 and said it now operated across 85% of Australia with more than 40,000 local drivers.

In other territories, DoorDash had significantly expanded its operations from food delivery to include on-demand delivery from convenience and grocery stores, same-day flower delivery. It also offers a white-label service where DoorDash handles last-mile delivery for partners.

This innovation is starting to occur in New Zealand too, where Uber Eats recently teamed up with Foodstuffs on a grocery delivery trial.

In the US, DoorDash has expanded its offering to restaurant partners as the delivery market becomes more competitive with some rivals running commission-free models, at the same time as consumer demand swings back to dining out as the pandemic recedes.

New DoorDash initiatives include partner grants, turnkey websites for partner restaurants, and an accelerator program that gives select restaurateurs financial support and special educational resources. 

Last month, it added to this with the US launch of DoorDash Capital, a cash advance service for delivery partners that can help cover business expenses like payroll, equipment purchases, marketing, rent and hiring.



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