Canadian Pizza Magazine

COVID-19 Updates News
DoorDash reduces commission fees by 50% for restaurant partners


April 14, 2020
By Colleen Cross

San Francisco, CA – DoorDash has reduced its commission fees for its restaurant partners by 50 per cent to help restaurant partners weather the uncertain economic times brought about by the COVID-19 pandemic.The relief program, which applies to restaurants in Canada, the United States and Australia, will continue through the end of May.The move, intended to inject an estimated $100 million into restaurant partners, is meant to help operators respond to the financial threats they are facing during the pandemic, the third-party delivery service said in a news release.This new package is in addition to the previously announced COVID-19 response programs DoorDash adopted to help restaurant partners increase sales. Earlier commitments include:

  • zero commission fees for 30 days for independent restaurants in the United States, Canada, Puerto Rico, and Australia who sign up with DoorDash and Caviar for the first time
  • zero commission fees for all existing DoorDash and Caviar partners on pickup orders
  • the addition of more than 100,000 independent restaurant partners to DashPass, DoorDash’s subscription program which offers $0 delivery fees for consumers
  • the reduction of commissions for merchant partners already in DashPass
  • the commitment of up to $20 million in merchant marketing programs to generate more revenue for restaurants that are already on DoorDash

“This is not a deferral of fees, nor will merchants be asked to pay anything back,” the company said. “We have already invested more than $15 million in combined commission reductions and marketing efforts, and we’ve seen restaurants across the country generate millions of dollars in incremental sales – revenue that has been vital to helping them keep their doors open during the first weeks of the coronavirus crisis,” said Tony Xu, chief executive officer and co-founder of DoorDash.

According to the release: “Eligible restaurants are those that have five or fewer locations. Program administration and eligibility will be in DoorDash’s sole discretion. Given that circumstances are rapidly changing, we reserve the right to change, amend, suspend, or terminate the program or terms or conditions at any time, including to comply with legislation or regulation of any kind. 50% commission reduction applies to commission-based rates and is based on contractually agreed commission rates, excluding any special pricing.”

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