DoorDash Launches Changes to Give Local Restaurants More Choice and Flexibility
Local restaurants could use a hand during the coronavirus pandemic, and DoorDash wants to give it to them. The last-mile logistics platform recently announced new pricing changes that are geared to provide more support to its restaurant partners, including giving all U.S. local restaurants the choice of three different delivery commission price points with new Partnership Plans, starting with a 15% option.
The company also is lowering its pickup commission costs to 6% and has made Storefront — a commission-free online ordering product — free to restaurant partners, except for payment processing fees. “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,” he added. “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.”
According to the company, local U.S. restaurants on DoorDash and Caviar will be able to choose from three Partnership Plans with commission rates that vary based on the levels of marketing support. However, the restaurants will be able to update their plan selection to meet their changing needs.
For example, the DoorDash Basic plan will shift a larger portion of the delivery cost to the customer and adjust the delivery areas for restaurants so that Dashers still make meaningful earnings. Its DoorDash Plus plan will help restaurants grow their orders with access to DoorDash’s most loyal clients as part of DashPass, an expanded delivery area and lower delivery fees.
The DoorDash Premier plan allows restaurants to maximize the number of new customers and the volume DoorDash provides. It also gives users the lowest customer fees and the largest delivery area. DoorDash’s satisfied customers include Sherry Copeland, the owner of Jai Meals in Plano, Texas. Because her business operates out of a local mall, she notes delivery has been important for making 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,” she recalled. “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.”
Another satisfied customer is Bethan Johnson, the co-owner of PizzaCo in Kokomo, Ind. The restaurant opened in December 2020 and partnered with DoorDash in March. “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,” Johnson said.
“As a new business, we can’t predict what six months or a year will look like or what our needs will be,” Johnson continued. “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.”