Network Effect Drives ConnectedEconomy™ Growth
From its inception as an app that brought diners and restaurants together for online ordering and delivery, DoorDash has grown to provide retail products and prescriptions, all with the goal of ensuring that customers are making more transactions on its platform.
The more DoorDash users who do it, and the more often they do it, the more retailers and restaurants will want to be part of the DoorDash ecosystem.
Increased usage and frequency will also shift more similar transaction behaviors from analog to digital.
It’s the “network effect,” driving organic growth in the global ConnectedEconomy™, according to “Benchmarking The World’s Digital Transformation,” a collaboration between PYMNTS and Stripe based on data collected from more than 15,000 consumers in 11 country.
Get the report: Global Digital Transformation Benchmarking
Across the 11 countries studied in the report, PYMNTS found that digital activities of a transactional nature show strong synergies.
For example, of the projected 274 million consumers in these countries who currently use delivery aggregators to order food from restaurants, 67% also currently buy some of their groceries online and 71% buy some their online retail products.
The network effect helps explain how increased consumer engagement in one online activity can boost engagement in another. For example, when the score for “shopping online” increases by 10%, the score for “ordering groceries” increases by 6.9% and the score for “ordering restaurant” increases by 6.2%.
The study also found correlations between engagement in adjacent digital activities. For example, he found a strong network effect between ‘having fun’ and ‘communicating’. Namely, when the “having fun” score increases by 10%, the “communicating” score increases by 5.4%.
By making more everyday activities more digitally accessible to more consumers, innovators can deliver a connected and digitally transformed economy across borders and within countries.