Hold the door – new US food delivery giant arrives in New Zealand

by | May 30, 2022 | News

DoorDash might just be the biggest US company most Kiwis have not yet heard of. That’s all about to change as DoorDash, the United States’ largest on-demand local delivery platform, launches in New Zealand. 

As of May 25, Wellington city, the Lower and Upper Hutts have been able to use the company’s ‘Dashers’ (couriers) for deliveries, with neighbouring Porirua and Johnsonville soon to follow. The food delivery service already has an Australian presence, having launched there in 2019. The company claims to operate across 85 per cent of Australia with more than 40,000 local drivers.

Before the outbreak of COVID-19 and subsequent lockdowns, food delivery services were already enjoying rapid growth in New Zealand as they were elsewhere. Hungry New Zealanders currently have a range of food delivery options at their fingertips, including Menulog, Uber Eats, Delivereasy and others. The use of such platforms is likely to increase as customers come to increasingly rely on the convenience of direct delivery, while restaurants and fast food outlets double down on food ordering and delivery platforms as a key digital marketing medium.

Aside from a minor variations, all food delivery platforms tend to offer a similar thing: food collected from a restaurant and brought to your door. Considering the extra competition that DoorDash will bring, is the arrival of DoorDash a good thing for the New Zealand food scene?

Industry watchers say the aggregator will have its work cut out setting its offerings apart from competitors. Restaurateur and business coach Miriam van Heusden lists DoorDash as one of 20 online food ordering and delivery platforms currently operating in Australia. Van Heusden says it’s worth hospitality business owners consider the details of the different food delivery options on offer, as some providers charge up to 35% in fees to have the food delivered, making it impossible to make any profit.

How about for Dashers? According to the recruitment website Indeed, the average DoorDash delivery driver working in the past 36 months has had an hourly pay rate of approximately AU$24.56, which is 10% below the Australian national average. Car running costs and wear are extra negatives. This salary information was gathered from 431 data points collected directly from Australia employees, users, and past and present job advertisements the site.

Elsewhere in the world, DoorDash scams have been another headache many Dashers have had to deal with. Here’s a list of recent DoorDash Scams and how drivers can avoid them.

On the upside, Dashers rate the flexible working hours as a positive. “It was fun for a bit”, said one.

DoorDash says: Since the company’s founding in 2013, DoorDash has expanded outside the United States to countries including Canada, Australia, Japan, and Germany. Each month, the platform connects more than 25 million consumers, with more than 550,000 local businesses and restaurants, in more than 7,000 cities. DoorDash brings together communities by connecting consumers with their favourite local and national businesses bringing ‘More to Your Door’.

Using the DoorDash app, Wellingtonian foodies can order from local merchants including Mama Brown, The Ramen Shop, 1154 Pastaria, A Taste of Home, Zany Zeus, Boneface Brewing and more. Customers will also be able to access a variety of national brands on DoorDash, including Hell Pizza, Nando’s, Subway, Tank Juice, Taco Bell and Burger Wisconsin. Beyond food, locals can also order from a range of convenience and specialty stores, with more categories coming soon.

Vaibhav Vishen, who runs a popular Indian eatery in Wellington says, “Having DoorDash in New Zealand brings in a huge opportunity for us as a restaurant. In a market that is heavily stretched between the pandemic and very few delivery options, it only makes sense for a new venture like Chaat Street by Vaibhav Vishen to launch itself on a globally known platform that is making its first entry in New Zealand.”

General Manager of Australia and New Zealand Rebecca Burrows says DoorDash is excited to kick off its New Zealand operations in an area which has such a vibrant food scene. “We’re thrilled to offer locals unprecedented access to the restaurants, cafes and food spots they love, not to mention a growing number of retailers offering groceries and convenience items – everything from hair products to pet food.”

Burrows says: “Our arrival in New Zealand also opens up exciting new earning opportunities for local residents. The Dashers who use our platform are stay-at-home parents, students, small business owners, and others who value the ability to flexibly earn supplemental income. They choose to dash because the platform allows them to work when, where, and how they want. We can’t wait to bring DoorDash to more places in New Zealand as we strive to connect more communities one doorstep at a time”.

For a DoorDash’s New Zealand launch offer, new customers can get 50 percent off their first two orders and $0 delivery fee for their first 30 days. Head to www.doordash.com/en-NZ to learn more.

How DoorDash works

For customersDoorDash offers a wide selection of the best food and products from the local neighbourhood. DoorDash is a simple web or app platform with secure payment processing. Customers can see where their order is at all times and also have the option to contact the drivers.  Consumers can download the app here (iOS) or here (android).

For business customers (merchants): DoorDash connects merchants and restaurants with their customers via an extremely easy-to-use service and marketplace app that meets the highest consumer experience standards. In addition, business partners receive interesting data insights that help them to successfully develop their business digitally and at the same time, retain full control over their offers such as the product presentation and the corresponding photos. More than 75 percent of restaurants on DoorDash confirm that DoorDash has helped them reach new customers. More information can be found here.

For Dashers (couriers): Dashers decide when, where, and how they want to work. Dashers can choose whether or not to accept deliveries, find orders near them, and earn more with promotions like Challenges and Peak Pay in the Dasher app. Before their first dash, Dashers will receive appropriate safety training and will receive an activation kit that contains items like a food warming bag, branded clothing, hand sanitizer, and mask for Dasher safety. More information can be found here.

About DoorDash

DoorDash (NYSE: DASH) is a technology company that connects consumers with their favourite businesses across the United States, Canada, Australia, Japan, and Germany. Founded in 2013, DoorDash enables local businesses to address consumers’ expectations of ease and immediacy and thrive in today’s convenience economy. By building the logistics infrastructure for local commerce, DoorDash is bringing communities closer, one doorstep at a time.

DoorDash offers a similar service to competitors such as UberEats, connecting merchants and restaurants with their customers via an easy-to-use marketplace app.

Image credit:  Freightwaves.com

 

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