DoorDash is reducing commissions for all of its local restaurant partners by 50 percent, including its Caviar subsidiary. The San Francisco-based company expects this program will benefit more than 150,000 local restaurants in the U.S., Canada and Australia. The new relief effort started on April 13 and continues through the end of May.
This $100 million injection is in addition to DoorDash’s previously announced COVID-19 response programs, which will also continue through the end of May.
“We continue to hear from our restaurant partners that driving growth in sales is the most effective way to help,” the company said in a press release. “We are doing our part by offering free delivery every Saturday. Through these programs, 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.”
DoorDash included a barb about government oversight, which is a topic that’s gained steam as cities like New York and San Francisco consider capping third-party delivery provider commissions, which typically range from 20 to 35 percent of each order.
“Government-imposed, one-size-fits-all solutions do not reflect the needs of the businesses they are intended to help,” the company said. “Arbitrary caps can cut off a lifeline for many consumers and deprive Dashers and Couriers of the earnings they need, now more than ever. Restaurant fees are necessary to keep Dasher earnings high and support all of the services restaurants and consumers need.”
Eligible restaurants must have five or fewer locations, and program administration and eligibility “will be in DoorDash’s sole discretion.” It added that the 50 percent commission reduction applies to commission-based rates and is based on contractually agreed commission rates, excluding any special pricing.
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