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Whether you are looking for a way to make extra money with a side hustle or you are a restaurant looking for ways to boost your sales using a third party delivery app, there are some key factors to consider.
One of them is the popularity of the delivery service in your area.
It’s no surprise that popularity is such an important factor to take into account when choosing the delivery app you want to use or partner with.
While I do not think you will consider a move to a different state where DoorDash is popular, the advice from experts can for sure help workers and business owners make the right decision.
In an effort to find some answers to the “what the most popular states are” question, BestReferralDriver crunched a bevy of statistics, and other metrics.
Check out our list of the 10 best states for DoorDash to get the most out of your partnership with one of the biggest delivery platforms.
Before starting our rankings, we want to start our article with a little reminder of delivery food companies. Indeed, during the past two years, the meal delivery industry changed a lot.
Fueled by the ongoing covid pandemic and the change of customer behaviors, there was a mass consolidation and food delivery services started acquiring each other.
There are now just three big players in the game.
Doordash is the fastest grooving delivery business in the United States.
They offer delivery and gig opportunities in big cities like New York, Chicago, but they also expanded their business to rural areas.
The number of small businesses on DoorDash located in rural communities increased by 15 percent from January to September of 2021.
Doordash provides in rural communities and Door Dashers earned over $1.5 billion in total.
Doordash partners with big fast food chains, such as Chick-Fil-A,Panera Bread, and Little Caesars, but it also helps local businesses, including small businesses, in rural communities to serve more customers.
The number of DoorDash consumers living in low-income communities increased by around 50 percent in 2021.
In these low income communities, it is possible to rely on the delivery app.
The on-demand logistical platform facilitates the delivery of any item, including alcohol delivery, food delivery, and grocery delivery, and also last-minute household delivery from a Dashmart store.
Furthermore, with the DashPass subscription, members can get unlimited free delivery on their orders from eligible merchants avoiding delivery costs.
This is one of the big differences between the San Francisco headquartered company and its main competitors that are most focused on operating in big cities.
Another reason for DoorDash’s growth was its purchase of Caviar, which focused on higher-end restaurants.
The financial statement for the last quarter of 2021 confirmed that the Uber delivery business is now better than the core ride-hailing business.
The Uber Eats platform includes major restaurant chains and coffee chains such as Starbucks.
Customers have the choice from different restaurants and services.
Grubhub was founded by Matt Maloney and Michael Evans in 2004. It is headquartered in Chicago and serves in more than 900 locations in the USA.
Recently acquired by Just Eat, Grubhub is more popular in cities of the east coast.
Numerous advantages of delivery services are easy and efficient buying options, cashless payment, affordable delivery services (especially for users opting for a membership).
Increasing demand of delivery to avoid the risk of infection post Covid-19 pandemic is further promoting the growth of all delivery businesses.
From a restaurant point of view, it is important to understand that in order to succeed and maximize profits, your business should offer take out and online ordering.
The users have the option to choose from a wide variety of restaurants and the option to choose different services such as delivery or pickup services based on their needs.
According to Second Measure, DoorDash still dominates the market share of the food delivery market.
DoorDash claimed a 58% market share of US food delivery services in February 2022.
On the other hand, other delivery companies had lower results. Uber Eats claimed a 24% market share of US food delivery services in February 2022.
Grubhub claimed a 15% market share of US food delivery services in February 2022.
Postmates claimed a 15% market share of US food delivery services in February 2022.
There is evidence that American customers prefer to use the Doordash app.
But what are the most popular states for Doordash? Let’s rank them from best to worst overall.
To construct our ranking, BestReferralDriver looked at a number of public, financial statements and private datasets related to food delivery apps.
We also compared the data of annual earnings of our team members who work with Doordash and other delivery services across the United States.
Overall, Texas came out on top as the best state for DoorDash.
Doordash has grown into Texas' most-used food delivery app. Doordash is most popular in Houston and Dallas.
In Houston, DoorDash provides contactless delivery from more than 3,000 businesses.
In Texas, Doordash faces competition from the Favor app that promises to deliver anything from any local store or restaurant — for a $6 delivery fee, plus 5 percent of the total cost.
Home to Silicon Valley tops the list of the best states for DoorDash and ranked number two.
DoorDash has a 74% of market share in San Francisco where the delivery platform is always busy offering delivery services during breakfast, lunch and dinner times.
Postmates was especially strong in Los Angeles, however, Doordash was able to increase its leads and currently has 41% of market share in LA.
From a Dasher point of view, California is one of the states with the highest statewide sales tax rate, at 7.25 percent, and is ranked ninth by the Tax Foundation in combined state and local sales tax rates.
When comparing Doordash earnings, California is also one of the states where people tip better.
Phoenix and the whole state of Arizona is one of the biggest markets for DoorDash.
The San Francisco headquartered company recently opened a Dashmart store in Tucson.
Sandra Watson, president & CEO of the Arizona Commerce Authority said:
"We’re pleased that DoorDash is expanding its southern Arizona presence and creating new jobs. Tucson continues to be an attractive location for growing companies, and we thank DoorDash for its investment in our state.”
Doordash has 52% of market share in Pennsylvania’s largest city, Philadelphia. The food delivery app was able to offer services more efficiently than its rival Grubhub, which currently ranks second most popular food delivery app in Philadelphia. The Chicago headquartered company’s sales came under Doordash’s sales.
Comparing the data from the last few years, we can see that in 2018, Grubhub had 74% of market share in Philadelphia.
As of April 2021, DoorDash accounted for 45 percent of the food delivery market in Washington D.C, the highest of any other delivery company.
Find below the rank of the most popular delivery apps and their market share in Washington DC:
In Atlanta, very similarly to other states, spending through food delivery service platforms is increasing by more than 200 percent year-over-year.
As of 2018, Atlanta residents had a clear preference for one third-party company over others. At this time Uber Eats had nearly 55 percent market share.
As of April 2021, Doordash caught up and had 45% of market share in Atlanta, and has the same market sales as its competitor Uber Eats.
Indiana is one of the states where DoorDash is more popular. If you are a doordash user, you will find a wide choice of dishes. DoorDash lists almost 30% more merchants in Indianapolis compared to its competitors.
In Indiana, Doordash also offers faster delivery and provides better pays for delivery drivers. All these benefits offered by the DoorDash allow the company to place so high in rankings in Indiana.
According to our experience, working with DoorDash in Indianapolis during the peak pay, you can make on average $16 per hour. You make on average $15 per hour working with Uber Eats.
The Big Apple is a technology and trend epicenter. Following the coronavirus pandemic which forced a nation-wide shutdown of restaurants and many other services, New Yorkers began searching for “delivery apps NYC” which led to restaurants rushing to adopt the latest online ordering system in order to keep providing to their customers.
In 2021, the New York City Council on Thursday passed a permanent commission fee cap on third-party deliveries.
Companies like ChowNow are trying to take advantage of this situation.
With many options to choose from, as a restaurant, you may find one or two of these delivery companies that will provide the right restaurant delivery service for your restaurant or for your next gig.
Keep in mind that Doordash already offers plans well below the commission cap that is proposed.
Find below the rank of the most popular delivery apps and their market share in NYC:
New York is a popular city for bike couriers
Illinois is one of the states at the bottom of the 10 most popular states for Doordash.
Keep in mind that very similarly to New York City, the City Council in Chicago unanimously approved an ordinance setting a 15% cap on the various service fees of third-party delivery companies. DoorDash says those caps force it to charge consumers more.
Florida is probably one of the worst states for DoorDash, as it is ranked 9th out of 10 on the list of top states for DoorDash. In the city of Miami, Doordash has 31% of market share. Miami is one of the historical most popular cities for Uber Eats and Postmates.
We did the same thing as above, but this time, instead of ranking by state, we rank by city. The following is the list of the cities where customers prefer to order food choosing Doordash platform.
In these cities, the frequency of ordering through DoorDash is higher, especially if compared with Doordash competitors.
Once you identify the best cities for Doordash drivers, it is easier to make the choice between Doordash or Uber Eats or Grubhub vs DoorDash, and which one is better for your business.
Whether you are a business owner or a gig worker, it is important that you know that Seattle has been one of the most hostile metropolitan cities in trying to rein in some “bad practices” of food delivery services.
In addition to a 15% cap on commission, the city of Seattle recently imposed strict measures on food delivery apps. A new law requiring third-party meal-delivery apps to get written consent from restaurants prior to listing their menus online, or taking orders without permission.
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The top states where DoorDash operates are Texas and California, which rank first and second. The bottom of the list features two states located on the east coast: Illinois and Florida.
The worst states in the U.S. for DoorDash in terms of popularity are the state of New York, followed by Illinois and lastly Florida. If you are a gig worker, even if Doordash is popular in your area, there are other factors to keep in consideration while choosing your next gig such as the cost of living. DoorDash can always be a great opportunity to make more money and maximize your profits, especially if you use the scheduling feature and you work during the busiest hours.
If you are a business orner, we suggest you consult our guide to the best third party delivery app.