How DoorDash Came Back from the Brink of Death, and Won

In 2017, DoorDash was a distant third in food delivery. By 2020, they dominated the market. How?

Strategy: Three Key Decisions

First, DoorDash recognized that owning delivery logistics unlocked restaurant supply. They built a network of independent drivers who could deliver for any restaurant. Grubhub just routed orders to restaurants. Uber Eats started with pre-made meals in cars. DoorDash built the logistics-first model everyone uses now.

Second, they launched in suburbs, not cities. Worse alternatives, more affluent customers, higher order values, and zero competition. They took over key markets while competitors fought over metropolitan cities like San Francisco and New York City.

Third, they prioritized restaurant selection over speed and price. As long as delivery took ~40 minutes, customers were happy. Wide selection mattered more than being 5 minutes faster.

Execution: Relentless Speed

DoorDash nearly died twice: down rounds in 2016, almost out of cash in 2017. They survived through obsessive execution. Better reliability. Cleaner app. Features like dasher tracking before anyone else, and DashPass before Uber Rewards.

Luck: Perfect Timing

From 2018-2019, Grubhub was public and couldn't afford to burn cash pivoting models. Uber was recovering from scandals and an IPO, forced to cut spending.

DoorDash? Raised $1.8 billion and burned $475M in 2019 alone, resulting in negative 54% EBITDA margins only a private company could pull off. They 5x'd their market footprint in 2018 and spent $3B on marketing from 2019-2021.

When COVID hit in 2020, DoorDash was already winning. The pandemic only cemented their lead. Today, DoorDash holds nearly 67% of the U.S. food delivery market.

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Did you know not too long ago, ski tickets were half the price with lift lines being almost nonexistent?

The All-In Subscription Pass

In 2008, Vail Resorts launched the Epic Pass, giving members unlimited access to multiple mountains for one upfront price. The model was so effective that competitors formed Alterra Mountain Company in 2017 and launched the Ikon Pass to compete.

Today, these two companies control over 100 ski resorts across North America.

The Roll-Up Strategy

For local skiers and snowboarders, the Epic and Ikon passes seem like incredible deals. Suddenly, their local mountain's season pass grants access to legendary resorts across the country.

But locals were never the target audience.

Vail wants to attract wealthy tourists willing to fill resort-owned hotels at $500/night, spend $200 on mountain dining, $40/day parking, and pay premium prices for on-site experiences. Locals keep the mountain busy, fill the slopes, and create the atmosphere that attracts high-spending tourists.

The Hidden Cost

As ski towns become investment properties, locals get priced out. Teachers, ski patrollers, and even doctors living in these towns can no longer afford to live within an hour's drive. In Aspen, the median price of a home is $12M.

But here's what nobody talks about: it's not just the workers who are affected. It's the experience itself.

Ski resorts used to have free parking lots right at the base. Locals and tourists, rich and poor, would all trade beers and share stories after a run. A-Basin's "Beach" became legendary for exactly this reason. Strangers became friends over a grill in the parking lot. That's gone now at most corporate owned resorts.

Now, we aren’t saying to not go skiing. In fact, we just went to Big Bear two weekends ago. Just know there are hidden tradeoffs everywhere, even at your favorite ski resort.

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Margaret is cruising on the highway. Sitting in the left lane doing 60 in a 65, hands at 10 and 2, life is good.

She is listening to a podcast about mindfulness while actively ruining everyone else’s day. The person behind her has been tailgating for three miles and somehow she still doesn't get it.

She thinks to herself, "Oh my gosh, I must look stunning today, all these people are staring at me as they pass!" Who’s gonna tell her?...

The left lane isn't an open lane for you to drive below the speed limit. It's a passing lane. Either go faster (within reason, of course), or move to the right.

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