Why DoorDash & Other Delivery Apps Struggle with Profitability
Indigo 9 Digital
JANUARY 17, 2023
In the third quarter of 2022 DoorDash paid $446 million in marketing expenses or 35% of revenues. A healthier rate of marketing spend would be around 10% of sales. In 2019 DoorDash spent 101% of its revenues on marketing in the first quarter a few months before it passed Grubhub in market share. "We
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