# What DoorDash’s New Pricing Reveals



## MHR (Jul 23, 2017)

*What DoorDash's new restaurant pricing reveals*
Kia Kokalitcheva - Axios
Kia Kokalitcheva









Illustration: Aïda Amer/Axios​
DoorDash's new pricing tiers for restaurants reveal that there's no magical math that can keep customer fees _and _restaurant commissions low — one group will have to bear the cost.

Why it matters: During the pandemic, food delivery companies like DoorDash came under fire for charging high fees to restaurants, and faced tacit criticism that they didn't give up their own margins to help both drivers and eateries earn more.


Companies within the delivery industry warned they'd very likely shift costs to customers when cities began to implement (mostly temporary) caps on restaurant fees during the pandemic.
Details: DoorDash's three tiers, made official today after the company experimented over the past year, come with different commission rates (between 15%-30%), delivery areas and marketing features.


They also include different fees charged to customers, where restaurants opting for the lowest commission rate will see their customers charged higher fees than those who opt for the highest commission tier.
DoorDash is also cutting its pickup fees to 6% (including card processing fees) for all restaurants.
The company says that the tiers won't affect the earnings of its delivery drivers, which are calculated in a separate way.
Between the lines: While DoorDash is giving restaurants more options, the company is not giving up its own earnings, and in fact, doesn't expect this to affect revenue, COO Christopher Payne told journalists during a presentation.

What to watch: It wouldn't be surprising if the restrictions to the "cheapest" tier —and added perks in the most expensive — push a number of restaurants toward tiers with higher commissions if they find their online orders are decreasing.

The bottom line: There's no such thing as a free lunch delivery.











What DoorDash's new restaurant pricing reveals


The company says new pricing tiers won't affect the earnings of its delivery drivers.




www.axios.com


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## MHR (Jul 23, 2017)

DoorDash announces new pricing for restaurants


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...




techcrunch.com


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## REX HAVOC (Jul 4, 2016)

Delivery fares to drivers are still too low. Getting food delivery is a luxury and if you can't afford it then get your but off the couch and go down to the store and pick up your own food. There are plenty of people who don't mind paying $35 to have food brought to their door and that should be the target customer they market to not the guy that only wants to pay $3.50 to get his food from MickeyD's.


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## tohunt4me (Nov 23, 2015)

ALL I KNOW
IS DOORDASH IS SPENDING A FORTUNE ADVERTISING ON THE INTERNET !

I SEE THEIR ADDS EVERYWHERE THE PAST FEW WEEKS.

THEY ARE BEGGING FOR DRIVERS !


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## Seamus (Jun 21, 2018)

tohunt4me said:


> ALL I KNOW
> IS DOORDASH IS SPENDING A FORTUNE ADVERTISING ON THE INTERNET !
> 
> I SEE THEIR ADDS EVERYWHERE THE PAST FEW WEEKS.
> ...


DD has flooded my market with drivers, I don’t know how there could be many more added! Flooding the market with drivers is key to $3 offers.


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## touberornottouber (Aug 12, 2016)

REX HAVOC said:


> Delivery fares to drivers are still too low. Getting food delivery is a luxury and if you can't afford it then get your but off the couch and go down to the store and pick up your own food. There are plenty of people who don't mind paying $35 to have food brought to their door and that should be the target customer they market to not the guy that only wants to pay $3.50 to get his food from MickeyD's.


Either that or make the tipping history public to the driver so they can decide if they want to take the order. And don't punish the driver for not wanting to deliver to a poor tipper.


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## Who is John Galt? (Sep 28, 2016)

MHR said:


> DoorDash is also cutting its pickup fees to 6% (including card processing fees) for all restaurants.



What exactly are card processing fees?


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## Seamus (Jun 21, 2018)

Who is John Galt? said:


> What exactly are card processing fees?


The Red Card is the same to a restaurant as any other credit card that either charges the restaurant a flat charge or % processing fee on each use.


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## KevinJohnson (Mar 23, 2020)

The whole pricing model is unsustainable. The customer doesn't want to pay $15 delivery charge. The restaurants shouldn't have to pay 30%, they should be charged a flat fee like $4-$6 per delivery.


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