Read on Twitter
1/ $DASH just posted their prospectus and it's a great one. The company went from almost going bankrupt with a down-round in 2016 to taking $GRUB's market share from >80% to ~11% in the course of 4 years.
Here are my anecdotal thoughts on how they did this
Here are my anecdotal thoughts on how they did this
2/ Previous to DD, Grubhub + Seamless was the dominant leader in food delivery. They digitized the offline takeaway and delivery business. Since in-house delivery was mostly confined to restos in dense urban environments, this is where their marketplace largely operated in.
3/ DD's first insight was that if you could provide last mile logistics to restos, you could target a new restos and customer base in suburban and rural geos. Everyone in the industry thought there was no demand here and that the economics wouldn't work in low density geos.
4/ It was slow at first because they lacked resto supply but they solved this. First, they rolled out an "over the top" biz where they added 10,000's of restos without an official partnership. This helped "bootstrap" supply and solve the chicken and egg problem in the suburbs
5/ 2nd, they went and signed several large chain partnerships (Chipotles, Wendy's, etc.) that gave them instant scale in the suburbs. More importantly, these were the types of restos that ppl in the geos preferred vs. more indy trend in urban. These were acquisition rocket ships
6/ Once they had the best resto selection, they started executing brilliantly on national brand and performance marketing campaigns, including with their chain partners. This hyper accelerated acquisition across the country.
7/ Finally, they rolled out DD subscriptions. This locked in their high frequency customers but also took the best customers from $GRUB.
Unfort, by the time $GRUB started reacting in 2019, DD had already been building the fly wheel and moats for 3 yrs, thus the 11% share.
/Fin
Unfort, by the time $GRUB started reacting in 2019, DD had already been building the fly wheel and moats for 3 yrs, thus the 11% share.
/Fin
Ps. Forgot one important point, contrary to everyone’s belief suburbs ended being more profitable than urban. Families = higher AOV (DD rakes 40% of AOV). Easier pick up / drop off = cheaper couriers costs. This creates a huge profit pool to then go “outside in” and attack urban
