When DoorDash Went Rogue: The $668 Million Experiment

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Restaurants that never offered delivery were shocked to find their menus on DoorDash. Complaints and bad reviews poured in from customers unhappy with cold or poorly presented orders. AJ’s Pizza in Kansas learned it was on the app only after discovering its $26 specialty pizza was being sold for $16.

Instead of signing up, AJ’s Pizza decided to play DoorDash at its own game. They placed multiple orders for their own pizza, filling the boxes with plain dough. Why? To pocket the $10 per pizza difference between DoorDash’s selling price and the cost.

Restaurants that weren’t part of the experiment bore the brunt of unhappy customers. The owners had to deal with complaints about orders they never authorized, damaging their reputation without any control over the process.

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While DoorDash hoped its approach would encourage partnerships, it ended up alienating many restaurant owners. Worse, the company’s bold strategy didn’t help its bottom line—it posted a staggering $668 million loss in 2019.

Despite the misstep, DoorDash continued to grow, eventually refining its approach. By 2020, the platform had gained significant market share, albeit with lessons learned the hard way.

Sometimes, bold ideas lead to growth. Other times, they deliver a box of plain dough—and a lesson in humility.

Stay tuned,

BREEFX ✨

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