SAN FRANCISCO — DoorDash, the nation’s leading restaurant delivery service, has made new pricing changes for restaurants effective immediately. Beginning today, all U.S. local restaurants will have a choice of three different delivery commission price points with new Partnership Plans, starting with a 15% option. Additionally, DoorDash is lowering Pickup commission costs to 6% (from 15%) and making Storefront, a commission-free online ordering product, free (except for payment processing fees) for all restaurant partners. Doordash has come under fire for commissions with restaurants struggling from the pandemic and fee caps imposed by local cities.
The company said the moves will create more choices and solutions for restaurants’ needs and put more profits into the pockets of local businesses.
“There is a massive, increasingly digital opportunity for small restaurants, and we believe that when we work together, we can help them capture more of that market in a post-pandemic world––in-store, online, through a third-party partner, or any combination of these three,” said Christopher Payne, COO of DoorDash. “Over the past year, we’ve introduced offerings to help restaurants define their own futures. Today, we are changing how we do business to provide more choices, and better choices, for restaurants. We are hopeful that as they reopen for indoor dining, we can be a partner that helps restaurants accelerate into the future and continue growing. That’s the most important service DoorDash can offer.”
Improving DoorDash Pricing With More Choices for Local Restaurants and Lower Pickup Fees
In a stunning move, Doordash has now publicly listed commission rates it will earn on orders.
All local, U.S. restaurants on both DoorDash and Caviar will have a choice of three different Partnership Plans, with commission rates that vary based on the level of marketing support included. Restaurants will also always have the flexibility to update their Partnership Plan selection to accommodate their evolving needs.
- DoorDash Basic (15%):
- Basic is the most cost-effective way for restaurants to offer delivery and pickup to customers on DoorDash.
- Restaurants can continue to opt into additional in-app marketing programs as desired to reach even more customers.
- This plan shifts a higher portion of the delivery cost to the customer and adjusts the delivery area for restaurants in order to ensure that Dashers continue to make meaningful earnings.
- DoorDash Plus (25%):
- Plus helps restaurants grow orders through access to our most loyal customers as part of DashPass, an expanded delivery area, and reduced delivery fees for customers.
- DashPass is an industry-leading customer loyalty program. Restaurants who participate in DashPass get increased visibility in our app, and DashPass customers pay reduced fees when they order from participating restaurants. Because DashPass customers order more often, participating restaurants see increased growth.
- DoorDash Premier (30%):
- Premier helps restaurants maximize the number of new customers and the total volume they receive from DoorDash. It offers the lowest customer fees and the largest delivery area, in addition to the benefits of DashPass.
- Additionally, DoorDash Premier comes with a Growth Guarantee. For all restaurants on the Premier plan that accept fewer than 20 total orders per month across Pickup, Delivery and Caviar, DoorDash said it will refund their full commission for that month.
- New Pickup Pricing (6%)
- DoorDash is also reducing Pickup commission from 15% to 6% across all restaurant partners and plans so they can leverage the reach of the DoorDash Marketplace and connect directly with customers in their neighborhood. This rate includes payment processing.
“Jai Meals operates out of a local mall, so delivery has been an important part of how I have made up for lost income over the past year of dine-in closures. Despite this, my previous commission didn’t work for my business; it was hard to absorb that high of a cost, especially when delivery became a large percentage of my orders,” said Sherry Copeland, owner of Jai Meals in Plano, TX. “With the Basic plan, I can offer delivery to customers, who increasingly enjoy the convenience delivery provides, but at a cost that is more aligned with my products, my goals and my customers’ needs.”
“We are a new restaurant who just opened our doors in December of last year. To help grow our business, we partnered with DoorDash in March, and have been excited by the early reception from local customers. We are seeing incredible sales and growth through the app, and even Dashers are coming back to order their dinner after they complete a delivery,” said Bethan Johnson, co-owner of PizzaCo in Kokomo, IN. “As a new business, we can’t predict what six months or a year will look like or what our needs will be. Right now, the Premier plan makes sense for us to continue growing, but it’s great to have the option to move to a plan that might be better aligned with our future goals. That flexibility is key as we are just starting out.”