DoorDash is moving to a tiered delivery model and is offering several pricing options for restaurants.
Under the program, restaurants are charged between 15% and 30% for delivery and pickup is set at 6%. Each plan offers different benefits to the restaurant and helps the delivery company address the growing number of governments that are capping fees. The company noted during its recently quarterly earnings press conference that it “operated under price controls in 73 jurisdictions”
“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,” DoorDash COO Christopher Payne said. “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.”
Here are the plans according to a DoorDash release:
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 a customer loyalty program. Restaurants that participate in DashPass get increased visibility in the app, and customers pay reduced fees when they order from participating restaurants.
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 guarantee. For all restaurants on the premier plan that accept fewer than 20 total orders per month, DoorDash will refund their full commission for that month.
New Pickup Pricing (6%)
- DoorDash is also reducing pickup commission to 6% across all restaurant partners. Restaurants can use the reach of the DoorDash marketplace and connect directly with customers in their neighborhood. This rate includes payment processing.
DoorDash offers an interactive quick to help businesses decide the best option. Sherry Copeland, who owns the vegetarian restaurant Jai Meals in Texas, said she will benefit from the new pricing structure.
“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,” Copelan said. “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. 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.”