DoorDash has already partnered with financial services providers such as Klarna and Stripe to broaden its payments capabilities, and it may now be preparing to take a more direct role in payments and in-store restaurant technology.
Rothschild & Co Redburn analyst Dominic Ball said that, based on “extensive channel checks, product evidence, hiring activity and merchant feedback,” he believes DoorDash is moving toward in-store restaurant systems similar to those offered by companies like Toast.
This would be a natural extension of DoorDash’s broader strategy, which has included steady expansion into new geographies, product areas, and adjacent technologies. That said, the restaurant point-of-sale (POS) market is already well established and highly competitive, even within its niche focus on food service.
“This would be a tough row to hoe for DoorDash since the market for POS software, especially for restaurants, is almost to the point of oversaturation already,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “Toast is certainly under pressure already from competitors like TableTurn, RevPOS, PNC’s Linga, Fiserv’s Clover, and a host of other platforms that specialize in serving every hospitality format from coffee shops to fine dining.”
Increasing Specialized Vertical Software
Vertical SaaS has become more granular over time, with platforms designed to service specific industries and workflows. In restaurants, these systems often go beyond payments and ordering to include inventory management, analytics, staffing, and other core operations.
Because they become embedded across so many day-to-day functions, these platforms tend to be difficult to replace. Once adopted, switching costs can be high, which strengthens incumbents over time.
Doubling Down on Restaurants?
If DoorDash does enter the POS space, it could attempt to leverage its existing network of restaurants, delivery logistics, and consumer demand data to differentiate its offering. In theory, that ecosystem advantage could help it generate additional revenue while also deepening its role in restaurant operations and bolstering its competitive position.
“Arguably, if DoorDash installs a proprietary POS at the restaurant location, they could become the exclusive delivery service at that restaurant and effectively block competitors like Uber Eats and GrubHub,” Apgar said. “The problem with that strategy is that Uber Eats has already trumped that card by announcing last week that they are expanding delivery to any merchant, whether they are part of the Uber Eats directory or not.”
“Consumers could simply order for pick-up and send Uber Eats to retrieve the order,” he said. “I’m not sure that doubling down on the restaurant vertical with in-store POS is the best move for DoorDash.”
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