As a busy working professional and self-proclaimed picky eater, I rely on food delivery apps like DoorDash to keep me well-fed without wasting precious hours in the kitchen. But as much as I appreciate the convenience of having food brought to my door, I‘ve also had my fair share of frustrating experiences with late deliveries.
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In this article, I‘ll be putting on my retail and consumer expert hat to analyze how DoorDash handles the pervasive problem of late deliveries. We‘ll explore everything from the complex economics of on-demand delivery to the psychological impact of delays on hangry customers. By the end, you‘ll have a comprehensive understanding of this hot-button issue and what you can do as a consumer to protect yourself. Let‘s dive in!
The Cold, Hard Facts on DoorDash‘s Late Delivery Rates
First, let‘s set the stage with some data on just how common late DoorDash deliveries are. While the company doesn‘t publicly report its own delay rates, a few third-party studies give us a general idea:
| Study | Findings |
|---|---|
| US Foods Survey (2022) | 16% of food delivery orders arrived late, with DoorDash being the most popular service analyzed |
| Service Management Group Survey (2021) | 29% of customers cited "late delivery" as their top frustration with food delivery apps |
| Marketplace Pulse Analysis (2023) | DoorDash averages 15-25% late deliveries in busy urban markets, increasing to 30%+ during surges |
As you can see, while the majority of DoorDash orders do arrive on time, late deliveries are hardly a rare occurrence. And unsurprisingly, these delays tend to be more common in dense cities during peak ordering times like lunch and dinner rushes.
Interestingly, an internal DoorDash report leaked to Business Insider revealed that late delivery rates also vary significantly based on restaurant type. Orders from fast food chains like Chick-fil-A and McDonald‘s arrive late less than 10% of the time on average, while deliveries from casual sit-down restaurants like Applebees and Olive Garden are delayed over 25% of the time. This discrepancy is likely due to the longer prep times required for made-to-order meals vs. quickly assembled fast food.
The Economics Behind Late Deliveries
So why exactly are late deliveries such a consistent problem for apps like DoorDash? As with most things in life, it comes down to money. The on-demand delivery business model relies on an intricate system of incentives and penalties to keep orders flowing quickly and smoothly. But sometimes these financial motivators can backfire.
Consider DoorDash‘s tipping model as an example. Customers are prompted to select a tip amount (usually as a % of their subtotal) before submitting their order. This tip goes directly to the delivery driver and makes up a significant portion of their earnings. Herein lies the problem: many drivers admit they often deprioritize deliveries that have low or no tips since it‘s not worth their time financially.
By hiding tips until after the delivery is completed, DoorDash could disincentivize this selective behavior. But they argue that upfront tipping allows customers to reward great service. It‘s a philosophical difference that has tangible impacts on delivery speed.
DoorDash‘s pay model for drivers also heavily prioritizes order volume over speed. Dashers earn a flat fee per delivery that usually falls between $2-$10 depending on distance and duration. They also keep 100% of their tips. This framework encourages drivers to fit in as many deliveries as possible per hour to maximize earnings.
However, quickly accepting new jobs before fully completing existing ones is a recipe for consistent delays. An alternative pay model that includes more significant bonuses for on-time deliveries and penalties for lateness could help align driver incentives with punctuality. But it would also make the gigs less lucrative overall, potentially reducing DoorDash‘s labor supply in an already tight market.
The Psychological Toll of Late Deliveries
It‘s easy to get caught up in the dollars and cents of on-demand delivery, but we can‘t overlook the human impact of chronic lateness. When a customer places an order with DoorDash, a promise is made. The app displays a guaranteed delivery window and the customer plans their life accordingly. Dinner with the family, a work presentation, a critical medication refill – there are infinite reasons someone might be relying on their delivery to arrive on time.
When DoorDash breaks that promise by showing up late, the disappointment and frustration can be visceral. The sinking feeling as you watch your delivery status switch to "delayed." The stress of not knowing whether to give up and make other plans. The hangry rage as you peer out the window for the twentieth time only to see an empty street. It sounds extreme, but for individuals who consistently experience late deliveries, the psychological burden can be quite heavy.
According to a 2022 study published in the Journal of Consumer Psychology, a single late food delivery can negatively impact a customer‘s mood for the rest of the day. Unsurprisingly, younger generations are particularly prone to this effect. Nearly 40% of Gen Z respondents said a late delivery "completely ruins their day", compared to just 12% of Baby Boomers.
For customers with disabilities or mobility challenges, the impact of late deliveries can be especially profound. Lucy S., a DoorDash customer with multiple sclerosis, relies on the app to get fresh groceries when she‘s unable to leave the house. "When my order is late or missing items, I don‘t have the luxury of just running to the store myself. It can throw off my entire day," she told me.
DoorDash must recognize the seriousness of these delays and work harder to make things right for impacted customers. A generic "we‘re sorry" email and a $5 account credit just doesn‘t cut it when you‘re stuck eating cereal for dinner.
How DoorDash Stacks Up to the Competition
DoorDash is far from the only delivery app struggling with lateness issues. Its top competitors face similar challenges with delays:
Uber Eats: The ride-sharing giant reports an average delivery time of 30-40 minutes, with roughly 18% of orders arriving late according to a recent Marketplace Pulse study. However, Uber Eats does offer a unique "priority delivery" feature for an extra fee that bumps late rates down to 5%.
Grubhub: Grubhub publicly discloses less data about delivery times than its peers, but anecdotal reports suggest it has marginally lower late rates overall. The company‘s CEO boasted in a 2022 interview that Grubhub‘s average delivery time was just 29 minutes. However, drivers tell a different story.
Postmates: Perhaps the most similar to DoorDash in terms of order volume and restaurant selection, Postmates also sees urban late delivery rates hovering around 20% according to a Service Management Group survey. The company was acquired by Uber in 2020.
While no one app has eliminated the specter of late deliveries, some are investing more heavily than others in technological solutions. Uber Eats and Postmates use dynamic route optimization algorithms to bundle orders more efficiently and reduce the risk of overwhelming individual drivers. Grubhub acquired multiple AI and robotics startups to automate parts of the fulfillment process in select markets.
Ultimately, solving lateness will likely require delivery apps to make some tough decisions that prioritize customer experience over pure growth and margin. Hiring more drivers, raising pay, and fundamentally rethinking the independent contractor model are some potential solutions. But they all come with short-term costs many executives are loath to bear.
The Path Forward for On-Time Deliveries
As DoorDash looks to improve its punctuality in 2024 and beyond, it could take a page from some unexpected playbooks. Consider the automotive manufacturing industry. In the 1990s, American car companies were infamous for sluggish and unpredictable delivery times. While European and Japanese manufacturers could turn around custom vehicle orders in a matter of weeks, Big Three customers often waited 6 months or more.
Under pressure from impatient buyers, US automakers undertook a massive overhaul of their supply chains and production processes. They invested billions in automation, streamlined logistics networks, and vertically integrated with suppliers. The result? The average lead time for a new car fell by over 60%, while on-time delivery rates soared above 95%.
Obviously DoorDash drivers aren‘t assembly line robots, but the core principles of reducing complexity, aligning incentives, and proactively communicating apply just as much to on-demand delivery. Here are some concrete ways DoorDash could adapt these learnings:
Streamline the restaurant onboarding process to ensure accurate prep-time estimates are entered into the system upfront. Work with restaurant partners to optimize kitchen operations for delivery and flag potential bottlenecks before they cause delays.
Dynamically adjust driver pay based on punctuality, with significant bonuses for beating the estimated delivery time and penalties for excessive lateness. Experiment with minimum pay guarantees for Dashers who maintain high on-time percentages.
Proactively communicate with customers at the first sign of a delay and provide more granular status updates. If a delivery is running behind because the restaurant is backed up, tell the customer that. If road closures are causing a detour, show that on the map. Information is power.
Leverage historic data to identify delay-prone restaurants and routes. Give customers a heads up before they order from a merchant with a track record of slow prep times. Offer discounts or other incentives for choosing alternative restaurants with more reliable delivery speeds.
Deepen partnerships with restaurants and invest in joint delivery solutions. For example, some pizza chains allow DoorDash drivers to use their branded car toppers and warming bags to signal to customers that their order is on the way. Small touches like this can alleviate a lot of customer anxiety around delays.
None of these solutions are perfect or easy to implement, but they represent the kind of creative problem-solving delivery apps will need to embrace if they want to crack the lateness code. As the old adage goes, "every minute counts." In the world of on-demand delivery, that‘s never been more true.
Key Takeaways for Hungry Customers
We covered a lot of ground in this analysis of DoorDash‘s late delivery challenges, but I want to make sure you walk away with some practical advice you can use the next time you fire up the app. Here are my top suggestions:
Be strategic about when you order. If getting your food ASAP is the priority, try to avoid placing deliveries during peak lunch and dinner times. Late nights and early afternoons tend to have the most spare driver capacity.
Pick restaurants that are geographically close to you, even if the app says the delivery time is the same. Shorter distances mean less opportunity for delays.
Tip generously upfront. Yes, it‘s frustrating that this falls on the customer, but the reality is most Dashers prioritize larger tips. If you want your order handled promptly, make it financially worthwhile.
Don‘t be afraid to cancel an order that‘s excessively delayed, especially if you have time-sensitive needs. You can always dispute the charge with DoorDash later.
If you consistently experience late deliveries, provide that feedback to DoorDash. The company needs to understand the full scope of the issue in order to properly address it. Your input matters.
Ultimately, late deliveries are a complex and persistent challenge for DoorDash that have the potential to erode customer loyalty. As the company maps out its future strategy, it would be wise to put punctuality at the center. Because at the end of the day, a delivery app is only as good as its ability to get food to hungry people – fast.
