Published Online:December 2025
Product Name:The IUP Journal of Case Folio
Product Type:Article
Product Code:IJCF021225
DOI:10.71329/CaseFolio/2025.25.4.21-40
Author Name:Rupali Chaudhuri and Syeda Maseeha Qumer
Availability:YES
Subject/Domain:Management
Download Format:PDF
Pages:21-40
The case discusses the strategies that propelled US-based online food delivery platform DoorDash to success and the challenges that lay ahead for it as it scaled its operations in the highly competitive on-demand US food delivery market. While its early innovations in AI-driven logistics, strategic market targeting, and customer loyalty programs had resulted in rapid growth, the company had later begun facing rising regulatory scrutiny, concerns over gig worker treatment, and the need to maintain profitability amid growing competition and operational complexities. This case examines DoorDash’s business model, strategies, challenges, and future sustainability and offers insights into the company’s ability to sustain a competitive edge in the evolving platform economy. The company, with its platform business model and gig economy perspective, had disrupted the traditional food delivery industry. Despite its remarkable success, DoorDash faced a number of challenges including legal disputes related to worker rights, tipping controversies, and data breaches which exposed customer, merchant, and Dasher information. Moreover, it had to continuously strive to keep pace with the rapidly evolving technology and innovation to maintain its competitive edge in the delivery industry. Going forward, some key challenges lay ahead for Tony Xu (Tony), CEO of DoorDash, as the company transitioned from hyper growth to sustainable profitability.
In April 2025, DoorDash Inc. (DoorDash), a US-based online food delivery platform, launched a suite of artificial intelligence (AI)-powered tools aimed at helping restaurant partners optimize their menus, improve their visual merchandising, and create a smooth operational task flow. These innovations reflected DoorDash’s broader vision of using automation to empower merchants, enhance customer experience, and increase order volumes. They marked a pivotal step in DoorDash’s evolution from a mere food delivery platform to a technology-driven logistics partner committed to the long-term success of its partner merchants. According to Arpit Dhariwal, Head of Product, Merchant Acquisition & Growth at DoorDash, “AI-powered tools are built to take everyday tasks off operators’ plates, allowing restaurants to focus on what matters most— delivering great food and service, while preserving the authenticity and individuality of each brand. We’re excited to help drive more orders, save time, and support continued growth for our restaurant partners.”i