DoorDash Expanding In Australia, Its First City Outside The US

Food Delivery Service
Drivers of food delivery service delivering orders (Photo: Reuters / Henry Romero)

The US' largest food delivery service company, DoorDash, is now embarking on its first-ever overseas expansion with its sights set on the continent down under.

The relatively new startup company announced on Wednesday that it will be offering its services in Australia very soon, its first overseas location outside of North America.

DoorDash revealed that it will be offering its delivery service in the Australian city of Melbourne sometime next year. The company did not detail why it had chosen Melbourne to be its first overseas location but it did mention that it was excited to finally extend its vision to a new continent.

Australia already has a diverse delivery service ecosystem, which means that DoorDash will likely have to fight its way to acquire a sufficient market share to survive. Companies such as Uber Eats and Deliveroo have already established themselves in the country and have already been operating for a number of years.

According to DoorDash, it has already partnered with thousands of restaurants in Melbourne. This should allow the company to win over customers quickly when it eventually launches. The company remains confident of its prospects in the city as it apparently is forming new partnerships with establishments almost every day.

Apart from offering customers a plethora of establishments to choose from, DoorDash has also announced a number of huge promotions to attract new users.

The company will reportedly be offering free delivery for the first month on all orders above 10 Australian dollars. The company will also be distributing vouchers worth up to 30 Australian dollars in value to customers who do not receive their orders within 30 minutes.

The startup, which was established in 2012, hopes to replicate the winning formula it had used in the United States. Despite stiff competition and a myriad of issues, DoorDash was able to quickly scale up its business in the US allowing it to become the country's market leader.

DoorDash managed to scale up its business with a number of strategic acquisitions. The company recently bought out Caviar, a smaller operation that handles deliveries for high-end restaurants. The $410 million acquisition significantly boosted the company's bottom line.

Last month, DoorDash deliveries accounted for more than a third of all meal deliveries in the United States. The company's delivery sales managed to beat close rivals such as Grubhub, Uber Eats, and Postmates.

 In July, DoorDash reported an overall sales growth of 156 percent when compared to the same period last year. Among the other delivery services, DoorDash's growth continues to be a standout and its foray into other continents will likely serve to further increase that growth in the coming quarters.

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