How does DoorDash work for Restaurants? Business Model & Revenue Sources

DoorDash has cemented itself as a leader in the on-demand food delivery industry, outpacing competitors like Uber Eats, Grubhub, and Postmates. As of 2025, DoorDash holds an estimated 40% market share, making it the go-to platform for restaurants looking to expand their reach and boost sales.

If you’re considering integrating your restaurant with DoorDash or building an on-demand app like it, you might be wondering: How does DoorDash work? What business model does it follow? How does it generate revenue?

1. What is DoorDash?

DoorDash is one of the leading third-party food delivery platforms in the United States, connecting customers with restaurants and Dashers (delivery drivers). The platform allows users to browse, discover, and order food from their favorite restaurants, providing convenience and access to a vast selection of dining options. For restaurants, DoorDash serves as a gateway to an extensive customer base, helping them expand their reach beyond in-person dining and traditional takeout services.

Beyond just facilitating food orders, DoorDash plays a crucial role in streamlining delivery logistics. Restaurants that lack an in-house delivery team can leverage DoorDash’s vast network of Dashers to ensure fast and reliable order fulfillment, allowing them to focus on food quality and customer service.

For merchants, DoorDash provides a way to deliver goods and a new channel to acquire customers. For consumers, it’s a way to discover new shops in your neighborhood and it’s a huge time-saver. We also provide flexible work and meaningful pay for Dashers.

2. How Do Customers Place Orders on DoorDash?

Restaurants can expand their online presence with DoorDash, boosting sales through the Marketplace, Online Ordering, and DashPass while offering customers flexible options for Delivery and Pickup.

Placing an Order on DoorDash Marketplace

When customers want to order food, they browse the DoorDash app or website, where they can search for their favorite restaurants or filter options based on cuisine, location, promotions, ratings, and more. The platform provides a seamless ordering experience, allowing customers to explore thousands of restaurants in one place.

Once they select a restaurant, they customize their meal, add items to their cart, and proceed to checkout. Payments are made directly within the app or website, and customers receive real-time order tracking to monitor their delivery progress.

Placing an Order Through DoorDash Online Ordering

Beyond the DoorDash Marketplace, customers can also order directly from a restaurant’s own website or social media pages using Online Ordering, a commission-free ordering solution included in every DoorDash partnership plan.

With Online Ordering, restaurants get a custom-branded digital ordering page that integrates with their existing POS and payment providers. This service also includes loyalty programs, gift cards, and marketing tools to help businesses build customer relationships. Unlike other services that charge subscription fees, restaurants only pay for payment processing (2.9% + $0.30 per order).

How Restaurants Receive Orders

Once a customer places an order—whether through the DoorDash Marketplace or Online Ordering—the restaurant automatically receives the order through their preferred system, such as a tablet, POS integration, or third-party ordering software. The restaurant then prepares the meal, and depending on the service type, either a Dasher picks it up for delivery or the customer arrives for pickup.

DoorDash’s integrated ecosystem makes it easy for restaurants to attract, manage, and retain customers while giving diners a seamless way to enjoy restaurant-quality food whenever and wherever they want.

3. How Do Restaurants Receive DoorDash Orders?

Restaurants can customize how they receive and manage DoorDash orders, ensuring a smooth and efficient operation. Orders placed through DoorDash Marketplace and Online Ordering are processed the same way, and restaurants have two primary methods for receiving orders: POS integration or the DoorDash Order Manager app (tablet).

Option 1: POS Integration for Seamless Order Management

For restaurants looking to streamline their workflow, DoorDash offers direct integration with leading POS (Point of Sale) systems like Square, Toast, Deliverect, ItsaCheckmate, Redcat, and many more.

With POS integration, DoorDash orders are automatically sent directly to your POS system and kitchen, reducing the need for manual entry and minimizing human error. This helps restaurants maintain fast, accurate order processing, even during busy hours.

DoorDash also provides an open API, allowing restaurant partners to build custom integrations to manage menus, store settings, and order data—all within their existing technology ecosystem.

Option 2: Tablet & DoorDash Order Manager App

For restaurants without a POS integration, the DoorDash Order Manager app (available on a tablet or mobile device) serves as a centralized hub for receiving, organizing, and tracking both pickup and delivery orders.

How to Use the DoorDash Order Manager App:

• Receive Order Alerts: When a customer places an order, the app sends a real-time notification so the restaurant can start preparing the meal immediately.
• Update Menu & Pricing Instantly: Restaurants can adjust prices, add or remove items, and mark items as out of stock in real-time.
• Manage Order Flow: The app allows restaurant managers to pause new orders if the kitchen is overwhelmed and resume when ready.
• Coordinate with Dashers: Restaurants can track Dasher arrival times, communicate directly with Dashers, and prepare large scheduled orders in advance.
• Customer & Support Communication: Easily contact customers or reach out to DoorDash support for assistance with any issues.

Need a Tablet? DoorDash can provide one for a small weekly fee. Restaurants can order a tablet by contacting support or selecting the option when signing up.

Ensuring a Smooth Order Process

To maximize efficiency, restaurants should:

• Keep the tablet volume on loud so staff never miss an order notification.

• Place the device in a high-traffic area where employees can easily access it.

• Regularly update the menu and availability to avoid cancellations or substitutions.

By choosing the right order protocol, restaurants can enhance their off-premise efficiency, reduce errors, and provide a seamless customer experience with DoorDash.

4. How Restaurants Can Monitor and Optimize Their DoorDash Performance

DoorDash provides restaurant partners with a comprehensive set of tools to track performance, analyze sales, and improve operational efficiency. Through the Merchant Portal (desktop) or the Business Manager App (mobile), restaurant owners and managers can generate performance reports and make data-driven decisions.

Building Performance Reports

Restaurants can filter reports by timeframe (monthly, weekly, daily), location (if managing multiple stores), and order type to gain insights into key performance areas.

• Sales Reports: Analyze total sales, average order value, and order volume. Compare different order types, such as DoorDash Marketplace, Online Ordering, DashPass, and Pickup. Understand customer behavior, including the ratio of new vs. returning customers.
• Operations Reports: Track order accuracy, cancellations, preparation time, downtime, ratings, and product mix to identify areas for improvement.
• Financial Reports: Review detailed financial metrics, including specific orders, subtotal, commission fees, error charges, and payout estimates over time.

Best Practices for Successful Delivery Operations

1. Ensure Your Food Travels Well
   A well-structured delivery menu improves efficiency and customer satisfaction. Prioritize items that maintain quality during transit. To enhance food presentation and freshness:
   • Package sauces separately to prevent sogginess.
   • Use separate bags for hot and cold items.
   • Choose ventilated containers to keep hot foods crispy.
2. Optimize Your Menu for Profitability
   Increase revenue by refining your menu with high-margin items, best-sellers, and easily prepared dishes. Encourage upsells by offering add-ons, such as extra protein for salads, bowls, or burgers.
3. Monitor Incoming Orders Closely
   For restaurants without POS integration, assign a staff member to monitor new orders via the Order Manager app or chosen order protocol. This ensures a quick and accurate entry into your POS system, reducing order preparation delays.
4. Leverage DoorDash Promotions & Marketing Tools
   Restaurants can boost visibility and attract customers through various DoorDash promotions:
   • $0 Delivery Fee Promotion: Encourages first-time customers to order.
   • Sponsored Listings: Advertise your restaurant in premium spots on DoorDash, such as the homepage or top search results.
   • DashPass Integration: Tap into high-spending, frequent DoorDash users who tend to order more and spend more per transaction.
5. Streamline Dasher Pickups
   To ensure quick hand-offs:
   • Designate a pickup area where Dashers can collect orders efficiently without disrupting in-house operations.
   • Track Dasher arrivals in real-time via the DoorDash app so that staff can prepare orders accordingly.
6. Maximize DoorDash’s Learning Resources
   DoorDash provides comprehensive training materials through the Learning Center, offering step-by-step guides on setup, operations, and growth strategies. These resources are accessible via desktop, tablet, and mobile devices, making it easier for restaurants to optimize their online presence and increase profits.

By leveraging data-driven insights, efficient operations, and strategic marketing, restaurants can maximize their success on DoorDash and grow their customer base effectively.

5. Top 5 DoorDash features that make it stand out

DoorDash offers a range of innovative features that enhance the user experience for both customers and restaurants. These features help improve order efficiency, streamline delivery, and provide personalized recommendations.

1. Pre-Scheduled Orders for Convenience

Customers can schedule their food deliveries up to a week in advance, ensuring meals arrive exactly when needed. This feature is particularly beneficial during peak times, such as holidays, game nights, or special events, helping users avoid long wait times while allowing restaurants to manage high order volumes more efficiently.

2. Dual Rating System for Quality Control

DoorDash offers a two-part rating system to maintain high service standards:

• Customers can rate the food quality, helping restaurants improve based on feedback.
• Customers can rate Dashers separately, ensuring transparency and reliability in delivery services.

This distinction allows restaurants and drivers to receive feedback specific to their roles, leading to better food quality and more efficient deliveries.

3. AI-Powered Personalized Recommendations

DoorDash leverages artificial intelligence (AI) to provide personalized food suggestions based on user preferences, order history, and trending dishes. The AI-driven recommendation system ensures:

• Customers quickly find popular and highly-rated meals without extensive searching.
• Restaurants gain visibility for their best-selling items, driving more sales.

4. Live Order Tracking for Transparency

Customers receive real-time tracking updates from the moment their order is placed until it arrives at their door. The app provides:

• Live map tracking to see exactly where the Dasher is.
• Automated updates on order preparation, pickup, and estimated arrival time.
• Push notifications and SMS alerts, ensuring users stay informed throughout the delivery process.

5. “Top Menu” Feature for Quick Food Discovery

DoorDash’s “Top Menu” highlights the most frequently ordered dishes from a specific restaurant, making it easier for customers to choose popular items. This feature:

• Boosts sales for restaurants by showcasing their most-loved dishes.
• Speeds up decision-making for customers by displaying trending meals.

These key features set DoorDash apart from competitors, offering both convenience and efficiency for users while providing restaurants with enhanced visibility and customer engagement.

6. Why is DoorDash successful?

DoorDash joined a competitive market, but it came out on top. By December 2019, the brand dominates market share in the third-party delivery space. DoorDash earned 49 percent of U.S. consumers’ meal delivery sales in September. While Uber Eats edged out Grubhub for second place with 22 percent.

Being technologically-driven

DoorDash uses its cutting-edge tech that makes the brand stand out. For example, it integrates with its partnered restaurants and provide them an advanced data to help them understand more about customer behavior.

Chipotle’s site features DoorDash integration that allows the restaurant to have DoorDash deliver orders while maintaining access to live order updates, customer feedback, and localized delivery information.said Gartner analyst Evan Mack.

On other side, for customers, DoorDash is designed to be easy to use. Users can see a rating from one to ten that’s based on a combination of delivery quality, customer feedback, and overall popularity.

Different from competitions

While the inner city is full with delivery services, DoorDash focuses on the outside, where people had far fewer delivery options available to them. By using this growth strategy, the location-based app provide the most value, fill a need, and grow their brand.

The well-recognized brand

DoorDash consistently delivers killer integrated marketing campaigns. Hence, products, engineerings and brand are tightly linked, helping them to deliver the very best results.

Keeping their options open

Not only being third-party food delivery, DoorDash set up to establish itself and then expand its product offering.

Our vision is definitely last-mile logistics, so we started with restaurant food delivery. We now do grocery with Walmart, and you’ll see more expansion in the years to come.said COO Christopher Payne on Recode Decode

Read also: Super App Strategy: How To Make A Profit From Super Apps

7. What are DoorDash value propositions?

The DoorDash business model focuses on all three segments and keeps them well connected to each other. It empowers the drivers with restaurants and customers by tracking the driver’s location as well as predicting the delivery time.

How does DoorDash work for its uses?

• Track the driver’s location after placing an order.
• Customer service is available 24/7.
• Choose reliable restaurant menus just involving click.
• A better solution to save money and time.

For restaurants:

• The third-party delivery platform provides marketing and promotion campaign.
• Offer an extensive customer base.
• A cheaper way to reach customers, especially if you are small business.
• No need to hire own delivery man.

For Dashers:

• Earn income.
• Have chances to get tips from customers.

8. DoorDash business model canvas

The restaurants

The key roles of this platform is to connect foodies with their favorite restaurant and helps them to get the food delivered right at their doorsteps. As the results, businesses have a lot of reason to be with the app.

• If you don’t have any delivery services, partner with DoorDash. Because the brand has its efficient transport network for any food businesses.
• With DoorDash’s popularity and wide range, these restaurants can reach a new audience.
• Businesses that don’t have a proper plan can enjoy the benefit of food delivery with DoorDash.

Users

• People who love food but don’t have time to go out can enjoy DoorDash.
• Food lovers who love to order food through an advanced platform, or can’t cook for some reason.
• Users can use multiple payment options like debit and credit cards conveniently.
• Take advantages from discounts by ordering food through this platform.

Dashers

Dashers get a flat payment for their deliveries. Tips from customers are a big part of Dasher’s motivation to work for DoorDash. Dashers can set their working schedule with adaptable timings. It is easy to be a dasher, and the benefits are worth the effort.Above all, every segments can benefit in one way or another from DoorDash. Now, let’s take a look at the Revenue model of the company.

9. How does DoorDash make money?

If you are entrepreneur willing to enter into On Demand Logistics or food delivery startup, understanding the revenue model of DoorDash is vital. How does DoorDash work to continually win the confidence of the investors?

Delivery Fees

DoorDash charges an average of $5 to $8 per order, depending on the distance travelled, time of day and its relationship with the restaurant where the order has been placed. Deliveries are fulfilled by DoorDash’s own team of hired drivers, known as Dashers.

Commission

The startup also takes a commission fee, usually of 20%, from restaurants for every order. That fee is much higher than what its competitors reportedly charge. According to Vator, Delivery Hero charges between 10% to 11% on each order, while GrubHub is said to take a 13.5% cut on average. The fact that DoorDash is able to charge more indicates that it has a decent amount of sway over restaurants. Kurt Kane, Wendy’s chief concept and marketing officer, said DoorDash became its “lead horse” because of its focus on quality, adding that “the food almost always arrived hot,” reported Bloomberg.

Restaurants Pay for Advertising

DoorDash is so popular with restaurants that it is also able to charge them for marketing and advertising. The company charges an extra commission to restaurants who want to appear at the top of search results on its app.

10. The future of food delivery industry

The pandemic will have a long-lasting impact on the food industry, especially the restaurants offering dining services. As a fact, the restaurants that offer food delivery services say that they are generating incremental sales.DoorDash business model can prove to be very beneficial for almost all the delivery business. They can leverage the fruit of success in their business field after considering the same business model into their online food delivery segment. Then, check how DoorDash works to keep the local businesses going and carry on through these challenges.

Our experience

Are you willing to join food delivery industry with better features and strategies? Do you look into ways to reduce app development costs? If you are interested in building an on-demand application like DoorDash, let’s connect with our experts now. We will give you a step-by-step guide to get started:

• Define a full scope of work includes functions, UX/UI design, prototype
• Set an estimated budget and plan your resources
• Testing
• Delivery

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