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DoorDash’s new tiered structure is meant to give independent restaurants more flexible options and affordable pricepoints for different needs.

New DoorDash pricing tiers offer commission rates starting at 15%

DoorDash’s Storefront service for restaurants to build their own online stores is now commission-free and pickup commission has been lowered from 15% to 6%

DoorDash announced Tuesday that they are now offering a three-tiered pricing structure for restaurant operators, with the lowest commission fees set at 15% and the highest set at 30%.

The third-party delivery company will also be reducing store pickup fees from 15% to 6% and eliminating fees entirely for the DoorDash Storefront service for restaurants to offer delivery on their own website, a service that launched last July. These services are all rolled out Tuesday but may take up to five business days to be put into effect across all markets.

The new three-tiered pricing structure — meant to alleviate pressures and provide options for small businesses — will offer different features based on which plan you pick. Here’s a breakdown of each plan:

  • DoorDash Basic: 15% commission fees for restaurant operators, customers receive higher fees instead to offset the cost savings (ranging from $2.99-$4.99 extra, depending on area). Restaurants can still opt into in-app marketing promotions. Delivery radius is also smaller to ensure that Dashers receive fair payment.
  • DoorDash Plus: 25% commission fees for restaurant operators. Restaurants also receive access to DashPass premium membership customers. Operators at this level and above will also receive more visibility on the DoorDash app to customers.
  • DoorDash Premium: 30% commission fees for restaurant operators and access to DashPass customers. Offering the lowest customer fees and largest delivery radius. Premium membership also comes with a guarantee: any Premium members that receive fewer than 20 orders monthly across all DoorDash platforms will receive a refund for their entire commission.

DoorDash emphasized that the two higher tiers would have more brand visibility than the more affordable tier. This means, restaurants that pay higher commissions will get featured higher up in DoorDash’s carousel of featured and highlighted restaurants on a user’s homepage/mobile app.

To read more about DoorDash offering 15% commission fees in new tiered plans, read our article in Nation’s Restaurant News.

Contact Joanna at [email protected]

Find her on Twitter: @JoannaFantozzi

TAGS: Finance
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