The company appears to have listened to that feedback, and taken it to heart. On Tuesday, April 27, DoorDash announced a new, rethought commission system—offering three different pricing tiers, each taking a different percentage of the total customer order.
Three Tiers on Offer
The three tiers come with various tradeoffs for partnering restaurants and eateries. The lowest tier, for example, charges restaurants less in terms of commission fees. However, in exchange for this, it shrinks the delivery radius, and charges customers more for their order. As DoorDash explains in a blog post announcing the new tiers:
As part of the Premier option, DoorDash even guarantees that vendors will receive at least 20 orders per month. If they do not, DoorDash says that it will refund commission costs, subject to terms and conditions.
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.
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.
DoorDash also says that it will charge a flat 6% commission for scenarios in which the DoorDash app is used by customers to order their food, but they choose to pick it up themselves. This (obviously) saves DoorDash a delivery journey.
Helping Out Local Businesses
The company states that: “These actions are intended to create more choices and solutions across a portfolio of restaurants’ needs and put more profits into the pockets of local businesses.”
DoorDash, one of a growing number of online food ordering and delivery platforms, launched in early 2013. It is currently the largest food delivery company operating in the United States, with some 450,000 merchants serving a total of 20,000,000 customers so far—and a massive one million deliverers under its belt. Recently it expanded beyond food by even offering to deliver COVID-19 testing kits (!) in certain places.
Hopefully under these new tiered commission rules, the deal on offer is better than ever for restaurants—which, ultimately, will benefit customers as well.
