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DoorDash Slashes Fees to Help Locally-Owned Restaurants

During this social distancing time, DoorDash food delivery service is committing an estimated $100M in commission relief and extended marketing programs for independent restaurants that enroll in the programs through the end of May.

DoorDash commits an estimated $100M in commission relief and extended marketing programs through the end of May

DoorDash has announced it will be reducing commission fees for local restaurant partners by 50 percent on both DoorDash and Caviar*.

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This commission relief program will benefit more than 150,000 local restaurants in the United StatesCanada, and Australia and will begin on April 13 and continue through the end of May. This estimated $100M injection from DoorDash is dedicated to helping merchants respond to the acute financial threats they are facing right now.

This new package is in addition to the previously announced COVID-19 response programs which DoorDash adopted to help restaurant partners generate up to $200 million in additional sales. Earlier commitments include:

  • Zero commission fees for 30 days for independent restaurants in the United StatesCanadaPuerto 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; and
  • The commitment of up to $20 million in merchant marketing programs to generate more revenue for restaurants that are already on DoorDash.

While set to end in April, these programs will also now continue through the end of May. This is not a deferral of fees, nor will merchants be asked to pay anything back.

“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, CEO and Co-Founder of DoorDash. “We believe that doing our part is critical during this unprecedented time, which is why we are taking further steps to help our restaurant community. Brighter days are coming. There will be a time when restaurants reopen their doors, set the table, and welcome guests to celebrate. We’ll be right there with them every day until that day, and every day that follows.”

“In a time of great financial strain for many businesses, especially restaurants, DoorDash is leading in a way that we would like to see all businesses follow – placing community need over self-interest. There are many restaurants that will be able to keep their doors open during San Francisco’s shelter-in-place order as a result of DoorDash’s emergency relief efforts to reduce fees and increase sales,” said Laurie Thomas, Executive Director, Golden Gate Restaurant Association.

* Eligible restaurants are those that have five (5) 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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