DoorDash Expands Jack in the Box Partnership, Continues Growth in Competitive Sector
Just four months after announcing that it would be launching a pilot program with Jack in the Box and delivering late-night orders to customers in San Francisco, DoorDash is taking the next step. The on-demand restaurant delivery service is announcing an extended partnership this morning, as it prepares to offer Jack in the Box deliveries from more than 830 locations across 229 cities throughout the U.S.
Although DoorDash is competing in a highly-competitive sector, where many on-demand food delivery startups are struggling to gain traction among consumers, the company is carving out its own niche thanks to a number of partnerships with restaurants and technology firms, as well as pilot testing with delivery robots.
When DoorDash launched its pilot program with Jack in the Box last October, the partnership was billed as a way for consumers in San Francisco to order from Jack in the Box’s menu during the late-night hours. There was a large focus on reaching a young demographic that stays up late — particularly, 20-somethings who might be streaming TV shows or gaming with friends — with the ability to quickly place orders through DoorDash’s mobile app or with a few clicks on its website.
In the time since that initial launch, DoorDash has kept a close watch over key metrics to evaluate interest, explains the company’s Head of Business Development, Prahar Shah. The data that was gathered during that four month pilot period is now being used to refine DoorDash’s ordering system as the company prepares to extend the Jack in the Box partnership throughout the country.
“Our pilot test over the past few months truly validated the demand for Jack in the Box, particularly late at night,” Shah says. “We also analyzed delivery quality data and found ways to improve the order process, so that deliveries are even faster and more efficient.”
Shah says there are plans to continue the expansion to even more communities, however final decisions on where that expansion would occur won’t be decided until later this year.
Although DoorDash and Jack in the Box refer to this service expansion as a partnership, Shah confirms that the on-demand delivery platform will be handling the heavy lifting from a technology standpoint. For its part, Jack in the Box is promoting the new partnership by airing a TV spot in markets where the on-demand delivery service is live. The ad clearly targets gamers, with the invitation to place late-night deliveries through the DoorDash mobile app.
“While orders are placed and fulfilled using the DoorDash platform, DoorDash and Jack in the Box work closely together to ensure we’re providing a consistently high quality delivery experience,” Shah says. “We share data around delivery trends, on-time performance and more, and work together to improve when necessary.”
Those data and delivery trends could be used to determine which new markets to enter, as DoorDash looks to expand its major brand partnerships and service areas throughout the country. In an interview with Street Fight in 2016, DoorDash CEO Tony Xu described the opportunity for on-demand delivery platforms as “very vast,” particularly because around 85% of restaurants don’t deliver.
“It’s a small, very fast-growing segment of selection that’s never been delivered before growing very quickly because delivery is something that people want,” Xu said.
“DoorDash is winning in this space because we have become the industry standard for on-demand delivery,” Shah says. “Top tier brands have chosen to partner with DoorDash and invest significant resources into growing their delivery business together.”
Stephanie Miles is a senior editor at Street Fight.