DoorDash retools restaurant fees with tiered pricing
Restaurants can now pick lower commission options for the delivery app in exchange for less reach and promotion.
Delivery app DoorDash is now offering lower commission costs to restaurants after the company and its competitors came under fire for their fees earlier in the pandemic. You can use DoorDash, like similar apps, to find local restaurants and get food delivered to your door. As of Tuesday, restaurants can partner with DoorDash for three different commission prices: 15% 25% and 30% of the order total.
Services like DoorDash have in handy for some customers over the past year as the COVID-19 pandemic shut down dining rooms, but struggling restaurants found that the services took a hefty cut of their revenue. The new pricing tiers look to help alleviate this cost and may make it more affordable for smaller venues to use the app.
The lowest tier of 15% lets restaurants stay listed in the app, but reduces the delivery radius and charges customers more for the delivery. The middle option expands the radius and reduces fees, and the 30% option goes further and includes a guarantee of at least 20 orders a month.
If customers use the DoorDash app to order food, but elect to pick it up themselves, the service will charge restaurants in all tiers a flat 6% commission.
DoorDash announced the new pricing system in a blog post on Tuesday along with news that its website building service called StoreFront would eliminate commissions. Restaurants can use Storefront to make their own interactive ordering site and only need to pay processing fees.
