THIS IS YOUR LeePRESENTATION Adi, Izzy Adler, Coco Dana, Krystal(OR Hu,SLIDEDOC) and Max Moser TITLE Contents
1. Industry Analysis & Disruption 2. Competitive Landscape 3. Survey + Category Insights 4. Disruptor DoorDash 5. The Customer 6. Moving Forward
2 Legacy Brand Domino’s Disruptor DoorDash
“Turnaround” in 2009 Widest selection in industry
Market leader despite in-house Remains one of the few privately held delivery service competitors in the industry
“Fortressing” to remain on top Remarkable growth since 2018
Domino’s share price growth Third-party platforms US market shares 3000% 50%
40% 2000% 30%
20% 1000%
10%
0% 0% 3 Source: Quartz & Atlas Source: Second Measure 1. Industry Analysis
4 “Delivery War”
& Industry U.S. online delivery sales (in billion dollars annually) Trends 1 Third-party platforms outperform restaurant delivery
2 Third-party platforms prioritize $8 billion growth over profit margins U.S. online delivery market worth 2017 Strategic third party M&As to 3 remain competitive x4 Estimated growth of third party delivery by 2022
Source: WSJ 2017
5 Changes in U.S. delivery by cuisine Disruption: 73% of Domino’s stores Crashing the located within 6 miles Pizza Party of a DoorDash or Grubhub restaurant Source: WSJ
2019 Second Quarter expectations: Source: NPD Group
Same-store sales growth
Net sales (missed by $20 million)
Falling stock casts doubt on expansion strategy
6 “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.”
Richard. E. Allison Jr. Current CEO of Domino’s Pizza
7 2. Competitive Landscape
8 Partner vs. PARTNER MODEL NON- PARTNER MODEL
Non- partner PROS PROS model - Contractual so - Larger reach - app makes cut - No resto insights - ingredients, - Completely app’s own closures, pricing, drivers when ready - Restos want more orders - driver choice so won’t complain - marketing
CONS CONS - If only partner, lose - Legality business - Not profitable for app - Menu, closures, pricing, food timing 9 So, Where do Services Fall?
PARTNER NON- PARTNER
Until fall 2019 Post fall 2019
10 Says it comes down to….
VS
Inside Scoop from Maggie Drucker
SVP, General Counsel, and Because... Secretary at GrubHub - Public vs private, irrational vs rational spending, valuations - Constantly changing
11 3. Survey + Category Insights
12 99 California Survey Group 23 North Carolina 22 South Carolina 17 New York 6 outside US 215 Responses
Respondents by age group
62 % Female
37% Male
1% Other
13 Delivery % of Total Count of used apps Service User group
52% of responders who said they never used were older 50 years old
33% who used delivery are younger than 20 years old
14 Data from Mintel“ as Reference
Used mobile ordering Used third-party delivery apps
15 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 HOW DO CONSUMERS NAVIGATE“ THE CATEGORY? I only use one service Cook
Every service has different options
I am hungry Food Delivery No preference over who delivers it Lack of
My geographic Loyalty location Eat Out or Order from Price (cheapest/ Restaurant promotions/discounts) Directly Speed of Delivery 17 4. The Disruptor
18 Company Overview
Delivering Good to…
-Customers DoorDash -Dashers founded by Andy SoftBank leads a -Merchants Fang, Stanley $535 million Company Feb. 27: $13B Tang, Evan Moore Roll out of investment in Acquires Scotty DoorDash files & Tony Xu DoorDash Drive DoorDash Labs and Caviar for an IPO
2013 2016 2018 2019 2020
19 Connect people with possibility → build strong community
Disrupt the former norm of convenience by leveraging advanced technology to link individuals to empowered local merchants
WHYDistributeExplain 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 HOW
Subscription service: DashPass, provides unlimited deliveries for $9.99 a month WHAT
20 How is DoorDash Distinct?
21 How Will the “What” Evolve
Food Delivery + Anything Household/ Sold by a Food Delivery Convenience Business Items Near You
22 5. The Customer
23
DoorDash The Busy The Stressed The Young Family Professional Student Segmentation
1. Speed of 1. Customer 1. Speed of Delivery Service Delivery 2. Selection of 2. Speed of 2. Selection of Food Delivery Food 3. Customer 3. App interface 3. Affordability Service 4. Selection of 4. Convenience 4. Convenience Food 5. Customer 5. App interface 5. Convenience Service
24 User Experience 66% have used DoorDash 38% <20 years old 24% >50 years old (Our Survey)
Percent of time delivery services were ranked #1
25 Data from Mintel “as Reference (cont.)
Fast Delivery
26 Strengths
DashPass DoorDash has Customer can Customer can subscription for 310,000 track order and track order and $0 delivery fees restaurants Dasher Dasher
Open Receive and Decide to Wait for app/website end order in food pick experience restaurant
Weaknesses
Long time to get UberEats and Reviewers say Many reviews state GrubHub are it is often refund, customer app can be service for missing offered in more confusing incorrect/unreliable cities items 6. Moving Forward
28 Opportunities
Start with challenges ...
29 30 People don’t buy what you do, they buy why you do it.
WHYDistributeExplain
HOW
Being Loyal WHAT 31 Industry Expectations
32 Do you think DoorDash is socially responsible?
Industry Expectations
33 Delivery services create a strong, supportive, sustainable community 35 I. SOCIAL MEDIA CONTENT
36 II. CIVIC ENGAGEMENT PROGRAMS
37 III. AID POLICY FOR RESTAURANTS
38 Any Questions?
39 Sources: Company Website Reddit & Mintel, Facebook, Instagram https://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/HhbcDn724aP6gRC19 https://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-startup https://www.morganstanley.com/ideas/food-delivery-app-profits https://www.nytimes.com/2019/07/21/nyregion/doordash-ubereats-food-app-delivery-bike.html https://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-people https://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.html https://www.cnbc.com/2019/07/29/how-dominos-plans-to-fight-the-war-against-grubhub-and-ubereats.html https://www.fool.com/investing/2019/07/19/dominos-fortressing-strategy-continues-to-limit-gr.aspx https://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-11552107610 https://www.forbes.com/sites/sarwantsingh/2019/09/09/the-soon-to-be-200b-online-food-delivery-is-rapidly-changing-the-global-food-industr y/ https://www.vox.com/recode/2020/1/9/21058674/grubhub-sale-food-delivery-struggling-industry https://www.cnbc.com/2019/07/16/dominos-will-launch-gps-tracking-for-delivery-orders-by-end-of-2019.html https://clients-mintel-com.proxy.lib.duke.edu/
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