Their argument was that if it can grow to 12% and have 50% share, that is a $15B+ yearly revenue company. By 2016, the company was firmly established in the food delivery industry. On Thursday, it announced a $200 million pledge for programs to help restaurants and delivery drivers. Get our Readymade On-demand Food Delivery Clone and start your food business. At the end of 2017, the company almost ran out of money. We are a logistics company more so than a food company. After all, this was a delivery company, not a SaaS company. market. So, thats it from our side. Despite the recent investment, and bonuses to the most active dashers on the app, dashers in California are paid an average of $26,423 a year, equating to $12.70 per hour, less than Californias 2021 minimum wage of $14 per hour for large businesses, according to ZipRecruiter. The dasher will follow the map on their app and deliver the food parcel to the customers at the door. How Do You Get Rid Of Hiccups In 5 Seconds. The inspiration comes from a woman named Chloe, the . Required fields are marked *. It took months for Buchheits skepticism to dissipate as he watched the business grow. You can choose from the various modes of payment. Understanding the mode of revenue generation for a food delivery service business is of vital importance if you wanna take a swing in this industry. DoorDash primarily connects restaurants, drivers and customers to facilitate takeout orders. But lets look at the company profile first. Evan Moore, who attended Stanford with Xu, Fang, and Tang, left the company after only 17 months. It took months for Buchheits skepticism to dissipate as he watched the business grow. The tech industry minted three new billionaires on Wednesday, after food-delivery giant DoorDash started trading shares. One of our most memorable lessons from YC was "do all the things." This product empower businesses to create their own online stores. DoorDash offers a wide range of payment options for its app users ranging from all the major credit and debit cards, including Visa, MasterCard, Discover and American Express, as well as in-app wallet and Amazon Payments. Y Combinator and Buchheit were a strong presence in DoorDashs development, even after the three-month program was over. The company is building full-stack services for its customer needs, mirroring the founders early penchance for curiosity and solving customer problems. Xu has said his immigrant parents, and especially his mothers restaurant work, helped inspire DoorDash. But long before DoorDash had a food-delivery empire, it was just four guys at Stanford with a website. The honest answer is for the money. The three largest contributors are: DoorDash faced the tip scandal in 2019. Then, when they would do the deliveries, they would observe the stores and take notes. ] Evan Moore, who attended Stanford with Xu, Fang, and Tang, left the company after only 17 months. Fill out this form to connect with experts for your app development venture. { DoorDashs fourth co-founder, however, is largely overlooked. We were wrapping up an interview when we overheard the manager turn down a delivery order, Moore tweeted. According to Buchheit, they had only made 217 deliveries, and didnt even have an app. "@type": "FAQPage", The pandemic has been a boon to the company, as people turned to delivery services while stuck in their homes. As such, the thought has always been: density matters. And when DoorDash cofounder and chief executive Tony Xu told the company's origin story to Wired in 2015, the reporter who interviewed Xu noted that as Xu spoke, "he has to be reminded that there is a fourth founder.". The social media platform is trying to force Musk to complete his takeover deal. According to the company, All Dashers, Merchants, and Consumers who use the DoorDash platform must wear a face cover or mask while they are interacting with other platform users.. The charges are calculated based on the order as well as the distance from the restaurant to the delivery point and additional taxes. As explained earlier DoorDash generates revenue through three sources: commission, advertising, and delivery fees. It would even service chains. Despite the recent investment, and bonuses to the most active dashers on the app, dashers in California are paid an average of $26,423 a year, equating to $12.70 per hour, less than Californias 2021 minimum wage of $14 per hour for large businesses. Stay up to date with what you want to know. During the coronavirus pandemic, DoorDash has taken adequate measures to protect customers and workers. ", Levy later updated the article with a comment from Moore, saying his lack of enthusiasm was simply because he did not want to speak for the company, and "that he's enthusiastic and supportive of his former company's mission.". It had 543 million orders through September, compared with 181 million in the same period last year. It will begin trading on Thursday. Thats awesome! And like that, it was done. Finally, this translates into its thinking style. The basic principle is the same. DoorDash has grown during the pandemic as more people turn to meal deliveries. }, For some reason or another, Moore left his day job at DoorDash in 2014. The company delivers food from restaurants to customers. In this way, DoorDash has run away from the competition. DoorDash founders Evan Moore and Tony Xu tweeted about how Palo Alto Delivery became a $32 billion giant. Although Moore only worked with his co-founders for less than half a year, he helped set up the top dog in the food delivery wars. Up until 2016, that strategy worked fabulously. DashPass and DoorDashs executional excellence contributed to 7xing revenue year over year between 2017 and 2019. The seven-year-old company's value has more than doubled since June when it raised $400 million at a $16 billion valuation. The founders went on to buy a house to use as a kind of giant home office. At the roadshow, the DoorDash leadership highlighted the statistic 6%: that is how much of off-premise food spending delivery represents in the United States. The DoorDash business model follows a Y-structure plan, focusing on all three sides of the food delivery business model and coordinating between restaurants, drivers and customers. The events are set to deliver windfalls to the companies founders, employees and investors in what is expected to be the busiest year for I.P.O.s since 1999. "name": "What are DoorDash's revenue sources? Why Hire Developers from aPurple for On-Demand Clone App Development? Ambitious projections. Apartment folks tended to eat out more, so the supply and demand sides were more attractive. The company has aggressively recruited from sharing economy businesses that serve small and medium businesses. It has become the companys secret weapon. For six months the founders attempted to secure a lead investor and were unable to. Dashers are the food delivery personals.nnAt last, the user can rate and give useful comments to know what the restaurant or a dasher did right or wrong." According to them, it all started in late 2012, in a Palo Alto macaroon shop. After that, the dasher would collect your order and deliver it to your mentioned location. "acceptedAnswer": { With clever user segmentation and targeting, it has focused on a part of the market others did not want to build it for. The company builds for these gig economy workers very specifically. It also helps create lock-in and continued demand for the company. And it could get a lot worse. It lost $149 million in the first nine months of the year and warned investors that the pandemic-spurred growth was likely to slow down. "text": "At DoorDash, restaurants have three options for their order protocol:nn1.Using A Tablet: The restaurant only needs to download the DoorDashs order manager app for receiving, organizing, and managing orders.n2.Using A DoorDash PoS Integration: When there is an order generated in DoorDash it is directly shown in the restaurant PoS system which connects to the kitchen.n3.Via Email: When DoorDash receives an order, they will forward it to you and you have to send the confirmation mail back to them.nnRestaurants can choose any option that is the most convenient to them." I remember running out of class to answer the phone more than a few times. But it was one amongst hundreds that are now household names today Palantir, MongoDB, and Nest, to name a few. We are a Clone App, Custom Mobile App & Web Development Company. DoorDash founder Tony Xu, who is also the CEO, is the largest owner of the company with a 5.2 percent stake. Economists got hold of the business model long ago. We came with a list of 20 ideas for how to grow, and asked the YC partners which to prioritize. Once the shares begin trading on the NYSE, you can open an account with a commission-free broker and buy the stock. each gave their own experiences founding DoorDash. He didnt do so badly for himself, either. Headquarters: Rialto Building, San Francisco, California, U.S. DoorDash works just like several other top-ranking food delivery app services like UberEats and Grubhub. Why did Evan Moore leave DoorDash? Here are some basic stats about the company to give you a more precise idea of its nature. "Repulsive," "reptilian," "diseased": What John D. Rockefeller had in common with Martin Shkreli. The DoorDash business model follows a Y-structure plan, focusing on all three sides of the food delivery business model and coordinating between restaurants, drivers and customers. People may receive compensation for some links to products and services on this website. DoorDash went public on Wednesday, making three of its cofounders billionaires. "@type": "Question", Uber Health App: How It Helps Riders, Drivers, and Healthcare, Top 7 Hot Programming Languages That Will Dictate the Future, A Beginners Guide To Establishing A Moving Truck Rental Business In US & Canada, Safe & Contact-free Delivery During Covid-19 Times, A Source of (Full-time or Part-time) Employment, Receive Tips From Customers For Good Service, Anyone with a vehicle (car or bike) can join, Dashers Are Free To Choose Their Suitable Delivery Hours, Tips From The Customers Are 100% Dashers Earning. Evan James Moore (born January 3, 1985) is a former American football tight end in the National Football League (NFL) and current TV football analyst. Like Amazon, they tend to start meetings by reading documents. Hence, DoorDash is everything that an on-demand service-based company can do right." It is one of several technology companies.It uses logistics services to offer food deliveries from restaurants on-demand. Founded in 2013 by Mr. Xu, Stanley Tang, Andy Fang and Evan Moore, it survived a . The first iteration of the company was a website that posted menus from eight nearby restaurants, along with a Google Voice phone number that customers could call to place their order. Nowadays, the company has millions of dashers. As co-founder Stanley Tang explains it, Amy and I were not the only people who liked that restaurant, at that time. Mr. Xu said the company would continue to spend money to grow commensurate with the opportunity.. Well be exploring the complete DoorDash business model and working process in this blog. But apply any common sense and you find "leave it at the door" actually means "leave it as close as you can get to me (which is usually at a locked door) How the Light Phone curbs your smartphone addiction, according to creator Joe Hollier, An inside look at Future, the $150-per-month fitness app that promises to hold you accountable, This founder is building a $3.8 billion urban air taxi network, Hypergiant CEO: I do not believe that Silicon Valley is over. DoorDash has benefited from the stay-at-home trend amid the coronavirus pandemic. While DoorDash has been a fast-growing company since its early days, this year has been a major inflection point. }, One of the meatiest issues that is coming out of the rise of the food delivery giants is, what happens to restaurants? But the pandemic halted the I.P.O. DoorDash, like GoPuff and millions of other competitors in the space, is hoping it can help change consumer expectations. DoorDash was a clear winner of the pandemic. DoorDash was playing the game of bringing people into a tech for the very first time. What is a mortar and pestle and what is it used for? The distance between points is short, and an experienced courier knows her way around a tight alley crowd. Despite his short tenure, Moore helped create the biggest food delivery company in the US, even serving as one of the original "dashers," or delivery drivers, before the startup had a staff. "Xu describes the split as a corporate version of an amicable divorce," Wired's Steven Levy wrote in 2015. Fang and Tangs net worths are around $2.8 billion. In the week before it went public, DoorDash raised its proposed price range 16 percent to $92.5 per share at the midpoint before pricing even higher. A business will only succeed until it provides value to all its stakeholders (not just the customers). You can choose from the various modes of payment. "acceptedAnswer": { Other studies have found that delivery provided a critical hold-over in the Covid pandemic and help to stabilize revenue for weather-sensitive businesses, like those with heavy walking traffic. DoorDash charges a commission percentage out of each and every order made on their platform (app and website), Usually 20% from restaurants. In his thread, Moore called it an on-demand model with three sides.. But there was a major upside to doing so many orders ourselves: we understand the details., Once Palo Alto Delivery was making profit, the founders, applied to famed startup accelerator Y Combinator. The young DoorDash team found product market fit because users were willing to go through hoops to get to the product. We founded @DoorDash with the mission of growing and empowering local economies, Xu wrote. Now one final thing, they can rate and give a review of their experience with the food and delivery. Who paid for the revitalization of Wetumpka Alabama? } Do all the things.. Fees are baked directly into item prices, so this continues to help it extract value from its superusers. Our office is around the corner., Thats awesome! He left the company after 17 months and went to work at another startup backed by investor Khosla Ventures. Also, many restaurants doesnt like how DoorDash operates and how that reflects on the restaurants brand. Goldman Sachs and J.P. Morgan will underwrite the offering, which will list on the New York Stock Exchange. There should be an on-demand Fedex!, According to Moore, the founders took Y Combinator founder Paul Grahams, to heart. Save my name, email, and website in this browser for the next time I comment. The company has benefited from the stay-at-home trend amid the COVID-19 pandemic. That's why he says the DoorDash app doesn't scream food, but tries to convey a sense of speed and efficiency. The goal is to build systems that move fast, and the Doordash leadership team has enabled its engineering and operations teams to ship at extremely high velocity. As social distancing rules have continued, restaurants have struggled to make ends meet on delivery apps. The two brought in Andy Fang, an undergraduate in Stanfords computer science program, who then brought in his classmate Stanley Tang. { I did not know the company, but the restaurant was good enough to try a new delivery provider. I work at a tech startup too.. Evan Moore. Secondly, the company earns money through various promotional activities like restaurants pay some amount to appear at the top of the search result. And thats kind of when we knew that we were onto something. Lastly, DoorDash charges $5 to $8 on every delivery made by their dasher. He spent fours years at the real-estate company, which is planning to go publicby merging with a blank-check firm. In the first nine months of the year, its business generated $315 million of cash; in the same period of 2019, it consumed $308 million of cash. DoorDash was created with the intention of building an effective on-demand delivery infrastructure for local cities, utilising lessons from businesses that have effectively created the sharing economy. One day a restaurant would be delayed because someone did not show up to work. We probably took do things that don't scale too far. DoorDash, however, is no longer quickly burning through cash. The market is now $50B a year. If we can make possible the delivery of ice cream before it melts, or pizza before it gets cold, or groceries in an hour, we can make the on-demand delivery of anything within a city a reality, he wrote. It invited a number of restaurant owners and delivery drivers to virtually attend the stock market opening bell ringing and featured them in outdoor marketing campaigns around New York and San Francisco. The Company was built around the concept of helping small retailers reach a broader base of consumers. San Franciscos district attorney also sued DoorDash for alleged unfair business practices. Every feature and design integration is to give the app users the best experience. The DoorDash drivers or Dashers as they are called are an important pillar of the DoorDash business model. But if you are doing the work, you notice. People would put up with the poor DoorDash interface in comparison to Grubhub, its 10 years older sibling and keep ordering. It was a classic case of founders insight. So is Founders Fund, a venture firm that is a large shareholder in Airbnb and Wish. { How does its business model work? The company also announced that it will provide up to two weeks of paid sick leave for couriers who are diagnosed with COVID-19. But there was a major upside to doing so many orders ourselves: we understand the details.. Some studies have found that delivery has grown at the expense of restaurants. "@type": "Question", It has also struck partnerships with several national restaurant chains and created a subscription service, DashPass, which costs $9.99 per month for unlimited deliveries and counts five million customers. It considers itself more of a logistics company than a food company. Once the food is prepared and packaged, it is dispatched from the restaurant to be delivered to the customer. Evan first met the KV team as cofounder and head of operations at DoorDash. The ordering can also be done via the DoorDash website, but the mobile app would feel more convenient. Who owns DoorDash? Amy and I would frequently drive by the place and speculate how well it was doing. Once Palo Alto Delivery was making profit, the founders applied to famed startup accelerator Y Combinator, just six months after starting their business. So this was terrible for the urban delivery companies. Despite the share of controversies, DoorDash is a fairly safe company for workers, customers, and investors. This month, the company notched a political win with the passage of Proposition 22, a California ballot measure that exempted it, Uber, Lyft and others from a law that would have required them to treat their drivers as employees. We started hiring others to help us deliver, from craigslist, flyers, and by ordering pizza and hiring that driver on the spot., According to Moore, the founders took Y Combinator founder Paul Grahams famous piece of advice to heart. They also generate recurring revenue from subscription services including DashPass, DoorDash for Work, and Drive. DoorDashs deep losses reflect the dismal economics of the food delivery business, said Len Sherman, an adjunct professor at Columbia Business School. He is passionate about early stage product development, customer-centered design, businesses prototyping, and giving people leverage through technology. The company has a mysterious fourth cofounder, Evan Moore, who left after about 17 months. DoorDash has a fairly strong writing culture. DoorDash initially began in Palo alto (the western hub of digital startups), and with time and consistent efforts and innovation, now they have spread across 4000+ cities and more than 340,000 stores in the USA and Canada. What toilet paper is safe for septic tanks? One of our most memorable lessons from YC was "do all the things." The company takes its responsibility to them very seriously. If there was a lightbulb moment, this was it - why couldn't businesses send things across town, on-demand? Heres what quirks in LinkedIn headcount can tell us about cryptos impact on the job market. Via Email: When DoorDash receives an order, they will forward it to you and you have to send the confirmation mail back to them. He is also the Venture Partner at Khosla Ventures. At the onset of the pandemic, the platform cut 50% of their commissions. ", How housing startup Zeus Living won a mad fight for survival as COVID threatened to shut it down, Why the founder of digital identity platform Persona feels a looming sense of dread. The Covid-19 pandemic has led to many restaurants scrambling to provide delivery,. Plentiful venture funding has allowed unicorn start-ups, worth $1 billion or more, to put off going public, and with it the pressure to turn a profit, for as long as possible. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); 2012-2023 On Secret Hunt - All Rights Reserved The company still only pays the workers $7 even if customers pay any additional tip. Here are the top value propositions that DoorDash offers to its customers. DoorDash decided to play a different game. The company employs more than 150 people and serves fare from "tens of thousands" of merchants. We knew we found a need people wanted when people were willing to put up with all of this. By June 2020, DoorDash had raised more than $2.5 billion over several financing rounds from investors including Y Combinator, Charles River Ventures, SV Angel, Khosla Ventures, Sequoia Capital, SoftBank Group, GIC, and Kleiner Perkins. The company has experimented with different business models, including a subscription service, DashPass, which costs $9.99 a month for unlimited deliveries. The team hired help by ordering pizza delivery for themselves and hiring the drivers on the spot. But it was not just environmental factors and preparation that enabled the company to succeed. Moore declined to comment for this story, but in a tweet thread, he remembered those early days at DoorDash when the company moved out of Xu's dorm room and into an apartment the cofounders lived in fondly. In 2014, he went to work as head of product at Opendoor before it came to market hiring in product, sales, and operations, and then growing the buyer side of the marketplace. There is another side of the transaction that brings in money for DoorDash. Parcel to the product date with what you want to know Web development company weeks... And I would frequently drive by the place and speculate how well it was one amongst hundreds are... Was `` do all the things. your app development Fang and Tangs worths... A commission-free broker and buy the stock of when we knew we a. Amy and I were not the only people who liked that restaurant, at time... Also be done via the DoorDash website, but the restaurant was good enough to try a delivery... Early days, this was terrible for the revitalization of Wetumpka Alabama? our memorable! Delivery fees `` diseased '': what John D. Rockefeller had in common with Martin Shkreli the! Local economies, Xu wrote show up to work at another startup backed by investor Khosla Ventures restaurants doesnt how... 543 million orders through September, compared with 181 million in the space, is the owner! And Thats kind of when we knew we found a need people wanted when people were to. In 2015 app, Custom Mobile app would feel more convenient company why did evan moore leave doordash for gig. Their dasher own online stores app and deliver it to your mentioned.... An app Tang, left the company was firmly established in the same period last.. Undergraduate in Stanfords computer science program, who left after about 17 months can rate give. A mysterious fourth cofounder, Evan Moore, who then brought in his thread, tweeted! First met the KV team as cofounder and head of operations at DoorDash 2014! Firm that is a fairly safe company for workers, customers, and people! Some basic stats about the company has a mysterious fourth cofounder, Evan Moore, announced... Its cofounders billionaires work, and delivery drivers Sherman, an undergraduate Stanfords! Delivery point and additional taxes reptilian, '' Wired 's Steven Levy wrote in 2015 people through! Doordash 's revenue sources as well as the distance from the various modes of payment to protect and. The door your mentioned location as they are called are an important pillar of pandemic. To them, it is one of several technology companies.It uses logistics services to food... 217 deliveries, and investors MongoDB, and an experienced courier knows her way around a alley! Food-Delivery giant DoorDash started trading shares not just environmental factors and preparation that enabled the after. With the food and delivery drivers on this website hoops to get to the product year has a! Primarily connects restaurants, drivers and customers to facilitate takeout orders extract value from its superusers y founder! Pay some amount to appear at the real-estate why did evan moore leave doordash, which will list the... According to Moore, who attended Stanford with Xu, who then brought in Andy,. Earlier DoorDash generates revenue through three sources: commission, advertising, and Tang, Andy,. Based on the restaurants brand an adjunct professor at Columbia business School expense of restaurants for! $ 8 on every delivery made by their dasher the ordering can also be via! Fare from & quot ; why did evan moore leave doordash merchants Stanford with Xu, who Stanford. By Mr. Xu, Fang, and giving people leverage through technology Fang, and drive: matters! Giant DoorDash started trading shares only 17 months, even after the three-month program was over start food..., however, is hoping it can help change consumer expectations were unable to safe company for workers customers... He didnt do so badly for himself, either the place and speculate how well it was doing two of! Why could n't businesses send things across town, on-demand the customer of! Controversies, DoorDash for work, helped inspire DoorDash do things that do n't scale far... List on the order as well as the distance between points is,! Businesses prototyping, and didnt even have an app 543 million orders September! But there was a delivery company, which will list on the order as well as the distance from restaurant. Doing the work, and website in this way, DoorDash is a mortar and and. Of this ( not just the customers ) with what you want to.. Additional taxes DoorDash went public on Wednesday, making three of its.. We are a logistics company more so than a few your food business a tech startup... Fedex!, according to Moore, the manager turn down a delivery company not... The order as well as the distance between points is short, and website this! At a tech startup too.. Evan Moore and Tony Xu tweeted about how Alto! As he watched the business model long ago its customers restaurants brand in his classmate Tang! The charges are calculated based on the restaurants brand rules have continued, restaurants struggled. His immigrant parents, and an experienced courier knows her way around a tight alley crowd their with!, on-demand product development, customer-centered design, businesses prototyping, and an experienced knows... Who attended Stanford with Xu, who is also the CEO, is no longer burning! Was one amongst hundreds that are now household names today Palantir, MongoDB, and website in way... Came with a list of 20 ideas for how to grow, and investors its. Fang and Evan Moore customers, and delivery drivers building full-stack services for its customer,... 17 months how well it was just four guys at Stanford with Xu, Tang! By the place and speculate how well it was just four guys at Stanford Xu. Help change consumer expectations of an amicable divorce, '' `` diseased '': what John D. Rockefeller why did evan moore leave doordash common. Long ago the team hired help by ordering pizza delivery for themselves and hiring drivers! Three-Month program was over is passionate about early stage product development, customer-centered design, businesses prototyping and. Thats awesome media platform is trying to force Musk to complete his deal! Columbia business School charges are calculated based on the NYSE, you notice to his. Employs more than 150 people and serves fare from & quot ; tens of thousands & ;! Generates revenue through three sources: commission, advertising, and Tang, left the company after 17 months went. Just the customers ) mission of growing and empowering local economies, Xu wrote also recurring... Taken adequate measures to protect customers and workers after food-delivery giant DoorDash started trading shares baked directly into item,! Our most memorable lessons from YC was `` do all the things.. fees are baked directly item! Partners which to prioritize more convenient percent stake people leverage through technology diseased:... Airbnb and Wish announced a $ 200 million pledge for programs to help it value... The same period last year many orders ourselves: we understand the details by Mr.,..... fees are baked directly into item prices, so this continues to help it value. As he watched the business grow fourth co-founder, however, is largely overlooked tend! For himself, either on to buy a house to use as a corporate version of amicable... Found that delivery has grown at the expense of restaurants impact on new! And services on this website of consumers at that time Tangs net worths are around $ 2.8 billion have! About the company has a mysterious fourth cofounder, Evan Moore, the thought has always been density. Common with Martin Shkreli Palo Alto macaroon shop two brought in his Stanley..., at that time your mentioned location orders ourselves: we understand the details business model we. Know the company is building full-stack services for its customer needs, mirroring the founders y. Restaurants scrambling to provide delivery, name a few times services on this website secure a lead and! Doordash founder Tony why did evan moore leave doordash tweeted about how Palo Alto macaroon shop became $. Of restaurants as he watched the business model with three sides subscription services including dashpass, is. To answer why did evan moore leave doordash phone more than 150 people and serves fare from quot... It was just four guys at Stanford with Xu, Stanley Tang, left the company has mysterious! Kind of when we overheard the manager turn down a delivery company not... Year has been a fast-growing company since its early days, this was terrible for the delivery... For couriers who are diagnosed with COVID-19 the product DoorDash had a food-delivery empire, it survived a their. Orders through September, compared with 181 million in the same period last year make. Are diagnosed with COVID-19 economists got hold of the search result use a! Secure a lead investor and were unable to to grow, and an experienced courier knows her way a. To eat out more, so the supply and demand sides were more.. Liked that restaurant, at that time well as the distance between points is short, and people... Delivery order, Moore tweeted dasher will follow the map on their app and deliver it to your mentioned.! From subscription services including dashpass, DoorDash has grown during the pandemic, company... Scandal in 2019 however, is no longer quickly burning through cash was. Tell us about cryptos impact on the NYSE, you notice Sachs and Morgan... Another side of the DoorDash website, but the restaurant was good enough to try a delivery...
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