THIS IS YOUR PRESENTATION (OR SLIDEDOC) TITLE

THIS IS YOUR PRESENTATION (OR SLIDEDOC) TITLE

Lee Adi, Izzy Adler, Coco Dana, Krystal Hu, and Max Moser

Contents

1. Industry Analysis & Disruption

2. Competitive Landscape

3. Survey + Category Insights

4. Disruptor DoorDash

5. The Customer

6. Moving Forward

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3

Legacy Brand Domino’s Disruptor DoorDash

50%

40%

30%

20%

10%

3000%

2000%

1000%

0% 0%

“Turnaround” in 2009

Market leader despite in-house delivery service

Remarkable growth since 2018

Remains one of the few privately held competitors in the industry

Widest selection in industry

“Fortressing” to remain on top

Domino’s share price growth Third-party platforms US market shares

Source: Second MeasureSource: Quartz & Atlas

1.Industry Analysis

4

2

3

1

“Delivery War” & Industry

Trends

Third-party platforms prioritize growth over profit margins

5

Third-party platforms outperform restaurant delivery

Strategic third party M&As to remain competitive

$8 billion U.S. online delivery market worth 2017

x4Estimated growth of third party delivery

by 2022

U.S. online delivery sales (in billion dollars annually)

Source: WSJ 2017

Disruption: Crashing the Pizza Party

6

Changes in U.S. delivery by cuisine

Source: NPD Group

73% of Domino’s stores located within 6 miles of a DoorDash or Grubhub restaurant

Source: WSJ

Same-store sales growth

Net sales (missed by $20 million)

Falling stock casts doubt on expansion strategy

2019 Second Quarter expectations:

“The efficiency of the delivery process is something we know and understand very, very well. That's never something you’re ever going to see us outsource. The only

way to bring a long-term competitive advantage is to do it yourself.”

7

Richard. E. Allison Jr. Current CEO of Domino’s Pizza

2.Competitive Landscape

8

Partner vs. Non- partner model

PARTNER MODEL NON- PARTNER MODEL

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CONS- Legality- Not profitable for app- Menu, closures, pricing,

food timing

PROS- Larger reach- No resto insights- Completely app’s own

drivers- Restos want more orders

so won’t complain

CONS- If only partner, lose

business

PROS- Contractual so

- app makes cut- ingredients,

closures, pricing, when ready

- driver choice- marketing

So, Where do Services Fall?

10

NON- PARTNERPARTNER

Until fall 2019 Post fall 2019

Inside Scoop from Maggie Drucker

SVP, General Counsel, and Secretary at GrubHub

Says it comes down to….

11

VS

Because...- Public vs private, irrational vs rational

spending, valuations- Constantly changing

3.Survey + Category Insights

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Survey Group

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215Responses

62 % Female

37% Male

1% Other

99 California

23 North Carolina

22 South Carolina

17 New York

6 outside US

Respondents by age group

Delivery Service User group

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52%of responders who

said they never used were older 50 years

old

33%who used delivery

are younger than 20 years old

% of Total Count of used apps

“

15

Data from Mintel as Reference

Used mobile ordering Used third-party delivery apps

Why use delivery services?

78% - When I don’t want to buy groceries and prepare food

71% - When I want something quick

37% - On special occasions

19% - When busy in the office

16

“

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HOW DO CONSUMERS NAVIGATE THE CATEGORY?

I am hungry Food Delivery

Cook

Eat Out or Order from Restaurant

Directly

I only use one service

Every service has different options

No preference over who delivers it

Price (cheapest/ promotions/discounts)

My geographic location

Speed of Delivery

Lack of

Loyalty

4.The Disruptor

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2020201820162013 2019

DoorDash founded by Andy Fang, Stanley Tang, Evan Moore & Tony Xu

Company Overview

19

Roll out of DoorDash Drive

SoftBank leads a $535 million investment in DoorDash

Company Acquires Scotty Labs and Caviar

Feb. 27: $13B DoorDash files for an IPO

Delivering Good to…

-Customers-Dashers-Merchants

Explain

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DistributeWHY

HOW

WHAT

Connect people with possibility → build strong community

Disrupt the former norm of convenience by leveraging advanced technology to link individuals to empowered local merchants

Currently, door-to-door food delivery where individuals use web and app to order

DoorDash Drive: merchants run own private label delivery service through DoorDash

Subscription service: DashPass, provides unlimited deliveries for $9.99 a month

21

How is DoorDash Distinct?

How Will the “What” Evolve

Food Delivery + Household/

Convenience Items

22

Anything Sold by a Business Near You

Food Delivery

23

5.The Customer

DoorDash Segmentation

1. Customer Service

2. Speed of Delivery

3. App interface

4. Selection of Food

5. Convenience

The Stressed Student

1. Speed of Delivery

2. Selection of Food

3. Affordability

4. Convenience

5. Customer Service

The Young Professional

1. Speed of Delivery

2. Selection of Food

3. Customer Service

4. Convenience

5. App interface

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The Busy Family

User Experience

(Our Survey)

25

66% have used DoorDash

38% <20 years old

24% >50 years old

Percent of time delivery services were ranked #1

“

26

Data from Mintel as Reference (cont.)

Fast Delivery

Decide to order in

Open app/website

pick restaurant

Wait for food

Receive and end

experience

Strengths

Weaknesses

DashPass subscription for $0 delivery fees

DoorDash has 310,000 restaurants

Many reviews state it is often incorrect/unreliable

Customer can track order and Dasher

Customer can track order and Dasher

UberEats and GrubHub are offered in more cities

Reviewers say app can be confusing

Long time to get refund, customer service for missing items

6.Moving Forward

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29

Opportunities

Start with challenges ...

30

31

Explain

31

DistributeWHY

HOW

WHATBeing Loyal

People don’t buy what you do, they buy why you do it.

32

IndustryExpectations

33

Do you think DoorDash is socially responsible?

IndustryExpectations

create a strong, supportive, sustainable

community

Delivery services

35

36

I. SOCIAL MEDIA CONTENT

37

II. CIVIC ENGAGEMENT PROGRAMS

38

III. AID POLICY FOR RESTAURANTS

Any Questions?

39

Sources:

40

Company WebsiteReddit & Mintel, Facebook, Instagramhttps://techcrunch.com/2020/02/27/doordash-ipo/ https://www.theverge.com/2019/8/21/20826327/doordash-acquires-scotty-labs-autonomous-vehicle-remote-control-startup https://techcrunch.com/2020/04/01/doordash-now-delivers-from-over-1800-convenience-stores-nationwide/ https://www.nytimes.com/2020/03/04/technology/doordash-ipo.html https://images.app.goo.gl/HhbcDn724aP6gRC19https://www.youtube.com/watch?v=2OZqe0fX2dc&feature=youtu.be https://www.theverge.com/2019/8/21/20826327/doordash-acquires-scotty-labs-autonomous-vehicle-remote-control-startuphttps://www.morganstanley.com/ideas/food-delivery-app-profitshttps://www.nytimes.com/2019/07/21/nyregion/doordash-ubereats-food-app-delivery-bike.htmlhttps://www.qsrweb.com/articles/integrating-delivery-services-a-disruption-that-cant-be-ignored/https://www.gsb.stanford.edu/insights/doordash-ceo-solving-problems-time-starved-peoplehttps://secondmeasure.com/datapoints/food-delivery-services-grubhub-uber-eats-doordash-postmates/https://secondmeasure.com/meal-delivery-market-share/https://www.cnbc.com/2019/10/01/papa-johns-ceo-says-unlike-dominos-they-are-embracing-doordash.htmlhttps://www.cnbc.com/2019/07/29/how-dominos-plans-to-fight-the-war-against-grubhub-and-ubereats.htmlhttps://www.fool.com/investing/2019/07/19/dominos-fortressing-strategy-continues-to-limit-gr.aspxhttps://qz.com/938620/dominos-dpz-stock-has-outperformed-google-goog-facebook-fb-apple-aapl-and-amazon-amzn-this-decade/https://www.wsj.com/articles/consumers-love-food-delivery-restaurants-and-grocers-hate-it-11552107610https://www.forbes.com/sites/sarwantsingh/2019/09/09/the-soon-to-be-200b-online-food-delivery-is-rapidly-changing-the-global-food-industry/https://www.vox.com/recode/2020/1/9/21058674/grubhub-sale-food-delivery-struggling-industryhttps://www.cnbc.com/2019/07/16/dominos-will-launch-gps-tracking-for-delivery-orders-by-end-of-2019.htmlhttps://clients-mintel-com.proxy.lib.duke.edu/