Doordash Reduced or Eliminated Commission Fees for Restaurants
Daniel Johnson — March 18, 2020 — Business
References: blog.doordash & engadget
DoorDash has made some temporary changes to its platform, and most notably it will waive its commission fees. Eliminating commission fees will help to reduce capacity burdens placed on restaurants during a time when many areas are undergoing isolation.
Restaurants are now able to sign up for DoorDash and pay nothing in commission for a period of 30 days, however, restaurants that are already with the service can pay a reduced fee for delivery and nothing for pick up orders. In total over 100,000 independent restaurants are eligible to join.
A company spokesperson released a statement about the changes, "Due to the rapidly evolving situation, we will be evaluating conditions week over week, as opposed to assigning a fixed duration and will continue to connect with our merchant partners throughout the process."
Image Credit: Shutterstock
Restaurants are now able to sign up for DoorDash and pay nothing in commission for a period of 30 days, however, restaurants that are already with the service can pay a reduced fee for delivery and nothing for pick up orders. In total over 100,000 independent restaurants are eligible to join.
A company spokesperson released a statement about the changes, "Due to the rapidly evolving situation, we will be evaluating conditions week over week, as opposed to assigning a fixed duration and will continue to connect with our merchant partners throughout the process."
Image Credit: Shutterstock
Trend Themes
1. Commission-free Food Deliveries - DoorDash's elimination of commission fees for restaurants opens up opportunities for more affordable and accessible food delivery services.
2. Reduced Fee for Delivery - By offering reduced delivery fees, DoorDash encourages more restaurants to join its platform, fostering a competitive and diverse food delivery market.
3. Evaluating Conditions Week Over Week - DoorDash's commitment to regularly evaluating market conditions showcases the importance of adaptive business strategies in uncertain times.
Industry Implications
1. Food Delivery - The commission-free and reduced fee offerings by DoorDash disrupt and reshape the food delivery industry, driving increased competition and customer choices.
2. Restaurant - DoorDash's temporary changes provide an opportunity for restaurants to expand their reach, attract customers, and adapt to changing consumer preferences during challenging times.
3. Online Platforms - DoorDash's flexible evaluation approach shines a light on the need for online platforms to continuously assess market conditions and prioritize merchant partnerships for long-term success.
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