Why DoorDash & Other Delivery Apps Struggle with Profitability
Indigo 9 Digital
JANUARY 17, 2023
Food delivery companies largely sell an undifferentiated service. In the third quarter of 2022 DoorDash paid $446 million in marketing expenses or 35% of revenues. A healthier rate of marketing spend would be around 10% of sales. Even bottled water is more differentiated than food delivery services.
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