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 Third-party platforms prioritize $ 2 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/ 40.