DoorDash plans to lower or waive commission fees for restaurateurs
Category: #business  | By Mateen Dalal  | Date: 2020-03-18 |
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

DoorDash plans to lower or waive commission fees for restaurateurs
  • The decision of the company will enable independent restaurants stay afloat at the time of this pandemic
  • DoorDash has promised up to USD 20 million in marketing funds to aid independent restaurants

DoorDash Inc., a San Francisco based food delivery company, recently announced plans to enable independent restaurants stay afloat by reducing or waiving off commission fees till April end.

The announcement came on the heels of another announcement made by competitor GrubHub, which is planning to suspend up to USD 100 million in commission fees.

As states and cities across the United States require restaurants to cut their dining room capacity or completely close them, restaurant businesses will have to majorly rely upon food delivery in the coming weeks.

While people are self-quarantined due to coronavirus concerns, most of the food outlets are already having a difficult time dealing with dropping revenue. However, positive initiatives from companies like DoorDash is likely to ease out the economic impact that these independent and small businesses are facing.

In addition to the waived commission fees, DoorDash has promised up to USD 20 million in marketing funds to aid independent restaurants generate revenue in the coming weeks.

As per sources close to the matter, restaurants that are new to DoorDash can sign up and have to pay no commission fees for a month. Starting today, restaurants that are already members will pay lower fees on delivery orders and will also not pay for pickup orders. However, it is unclear as to how long this the fee will be waived.

Apparently, 100,000 independent restaurants will be allowed by DoorDash to join its subscription program for free. Meanwhile, existing partners will also be benefitted by the reduced  commission fees.

Generally, restaurants pay hefty commission fees to companies like GrubHub and DoorDash, besides the delivery firms charging them for marketing and advertising.  

For the record, DashPass offered by the company lets diners pay USD10 a month to have delivery fees waived on orders above USD 15. In the current scenario, that is a decent deal, both for restaurants and consumers.

Source Credit https://www.engadget.com/2020/03/17/doordash-reduces-commission-fees/      

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Intellect chooses IHH Healthcare to devise mental health programs

Intellect chooses IHH Healthcare to devise mental health programs

By Mateen Dalal

Intellect, a leading mental health platform located in Singapore, has reportedly announced a partnership with IHH Healthcare, which is Asia’s largest private healthcare group. The main objective of the partnership is to introduce and customize ...

Dyson compensates employees with onetime payment in absence of bonus

Dyson compensates employees with onetime payment in absence of bonus

By Mateen Dalal

Dyson, a British company renowned for its innovative vacuum cleaners, hair dryers and other products, is reportedly offering a majority of the staff at its Singapore headquarters a one-time payment, in recognition of their exceptional contribution. ...

Sapeon pursues new funding round to achieve $400 Mn valuation

Sapeon pursues new funding round to achieve $400 Mn valuation

By Mateen Dalal

Sapeon, a South Korean start-up focusing on the design of artificial intelligence semiconductors for data centers is seeking a funding round to bring its valuation to USD 400 million. Sapeon has the strong support of industry giants like SK Teleco...