have long been criticized for the generally high commission rates they charge restaurants. In an industry where the profit margin is said to be on average, paying a commission of up to 30 percent can be brutal.
The exact commission rates charged by these apps haven’t always been entirely clear. however, ByDash has taken a step towards greater transparency. The company has introduced a tiered commission system for local restaurants in the United States for DoorDash and Caviar.
Under the DoorDash Basic plan, restaurants will pay a 15% commission and pass a greater proportion of the delivery costs to customers. Their delivery area will be smaller than restaurants on higher tier plans to “ensure the Dashers continue to make significant income.” Restaurant owners can still participate in marketing programs to promote their business.
DoorDash Plus offers larger delivery area and business participation DashPass subscription service. Restaurants registered with the latter benefit from increased visibility in the application and customers are charged less. DoorDash says that because DashPass subscribers are placing more orders, restaurants are “seeing increased growth.” Restaurants on this plan will charge more than 25% commission.
The first level plan is DoorDash Premier, which charges a 30% commission. DoorDash says, along with the benefits of DashPass, it offers the widest delivery area and the lowest customer delivery charges. If a restaurant on this plan accepts fewer than 20 orders for delivery, pickup, and caviar in a month (without canceling too many), DoorDash will refund the commission on those.
Elsewhere, the company says it is reducing the commission for pickup orders to 6%. It also removes all Storefront ordering platform fees for all restaurants except payment processing fees.
In December, the company gave restaurants the opportunity to , including fixing of delivery costs and a personalized service area. He promised a lower commission rate for those who opt for self-delivery.
When many restaurants had to close their doors for on-site dining at the start of the COVID-19 pandemic, DoorDash temporarily or its commissions. It helped restaurants at a particularly difficult time. The tiered plans and the reduced commission for pickup orders could also be good news for them.
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