— Mobile

DoorDash announces new pricing for restaurants, with commissions as low as 15% – TechCrunch

DoorDash is announcing new pricing plans for the restaurants that use the platform for pickups and deliveries.

Before this, the company did not offer standardized pricing across restaurants. However, the question of how high delivery app fees might go (and how parsimonious the payments might be for restaurants as a result) prompted DoorDash to publish a long blog post about its fee structure last fall.

In fact, Oregon and Washington have passed caps on delivery fees, while lawmakers in California, New York, and Texas have proposed similar caps. On a call with reporters to discuss the new pricing, DoorDash COO Christopher Payne denied changing its pricing to appease lawmakers.

“This is not designed in response to legislation,” Payne said. “It’s designed in response to listening to restauranteurs and learning what they need.” DoorDash now offers three plans: DoorDash Basic, where restaurants only pay a 15% commission on deliveries, which shifts “a higher portion of the delivery cost to the customer” and supports a smaller delivery area; DoorDash Plus, where restaurants pay 25% to be part of DoorDash’s DashPass subscription program and get increased visibility in the DoorDash app; and DoorDash Premier, where restaurants pay 30% in exchange for the lowest customer fees, the largest delivery area and a growth guarantee of at least 20 orders per month across pickup, delivery and DoorDash-owned Caviar.

Across all plans, DoorDash says it will now charge only a 6% commission on pickup orders.

The company’s announcement includes statements from restaurant owners who are adopting the new plans. For example, here’s Sherry Copeland, owner of Jai Meals in Plano, Texas: Payne said these plans will become available to all restaurants on DoorDash today. However, it may take up to five days for the new pricing to fully take effect.  He added that DoorDash has been testing these plans over the past few months and that “we believe this will have a negligible impact — no impact, really — on our economics, nor on Dasher earnings.”

Katie Axon

Katie Axon is a 25-year-old junior programmer who enjoys listening to music, podcasting and theatre. She is kind and giving, but can also be very rude and a bit greedy.She is an Australian Christian. She has a degree in computing. She is obsessed with bottled water.

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