DoorDash is one of the top food delivery companies in the world. Drivers pick up meals you order from a restaurant and deliver them to your door.
Over 20,000 million people use DoorDash each month for restaurant delivery.
People order food for delivery to their homes and businesses.
Restaurants pay DoorDash for business fees in commissions on each sale.
Partnering with DoorDash for deliveries can help businesses increase sales.
It exposes them to DoorDash’s huge customer base.
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What Is DoorDash for Business?
The DoorDash Merchant program lets each company offer deliveries to customers.
For example, listing a business on DoorDash lets customers order food through the app.
Businesses can use marketing promotions on the DoorDash app.
These promotions let companies advertise sales and entice customers to order.
How Does DoorDash for Business Work?
Businesses that use DoorDash can offer customers meals delivered to their door.
In addition, the Storefront lets companies create a branded online store.
Customers can order from the company’s website.
Companies can also use the DoorDash Drive program.
This option lets them create a custom delivery program.
Any business can try DoorDash even if they’re already using another delivery service.
By using two or more services, companies can compare services and costs.
Companies that don’t currently offer delivery can grow their business with DoorDash.
The DoorDash for business fee amount goes up to 30% per order.
The amount of commission fees depends on the merchant program.
DoorDash offers three programs, each with a different fee structure.
The fees cost less than the cost of hiring delivery drivers and setting up a program from scratch.
What Are the DoorDash for Business Fees?
DoorDash doesn’t charge a setup fee when a business joins DoorDash.
New partners can sign up for a 30-day trial with no commission fees to try the service.
Commission fees can vary based on the market region.
Some markets have commission caps on what delivery apps can charge.
San Francisco was the first city to cap delivery fees at 15%.
The New York City Council followed with a similar cap a few months later.
Over 70 other markets have done the same.
The company offers four partnership plans.
Three are for local restaurants that don’t already have delivery staff.
One partnership plan is for businesses that do.
The fees listed below are general and can change depending on the laws in a particular area.
The plan is a starter plan for small businesses.
This plan has the lowest delivery commissions of any plan that uses DoorDash drivers.
Businesses pay a 15% delivery commission on delivery orders.
If a customer orders and picks it up, businesses pay a 6% commission.
This plan offers the smallest delivery area but has the lowest fees.
Businesses get a 10% larger delivery area with the Plus partnership.
However, the delivery commission fee is 25%, and the pickup fee is still 6%.
Merchants in the Plus program get access to the customers who use DashPass.
DashPass customers pay a monthly subscription fee to use the service.
In return, they pay $0 delivery fees and discounted service fee rates.
DashPass users order more because they pay a monthly fee for better rates.
Access to those customers can increase sales dramatically.
The DoorDash Premier program is best for high-volume businesses.
DoorDash Premier’s service area is 15% bigger than the Basic program.
This plan also includes access to DashPass customers.
Each delivery has a 30% commission fee, and customer pickups have a 6% commission fee.
If a business doesn’t get at least 20 orders a month, DoorDash waives the commission fees.
DoorDash Self Delivery
The DoorDash pickup and self-delivery program helps independent restaurants that already have a delivery staff.
They can use DoorDash to reach new customers.
Each business is listed in the app so customers can place orders. DoorDash drivers don’t deliver these orders, though.
Instead, each company’s private delivery staff handles them.
Orders have a 12% commission fee. DoorDash charges the standard 6% fee if a customer picks up an order.
A restaurant owner who wants to take advantage of the broad reach of DoorDash to reach customers can use this program for promotion.
So many people use food delivery apps that this program makes it a convenient and affordable choice to reach more customers.
Other DoorDash Program Fees
Other programs for businesses include Storefront and Drive.
The DoorDash Storefront program lets businesses set up online ordering from their website.
Then, a DoorDash driver fulfills the orders.
This program doesn’t have a monthly software fee or contract. DoorDash doesn’t charge commission fees, either.
Instead, they take a percentage of each sale as a credit card processing fee.
DoorDash takes a flat $0.30 plus 2.9% of each sale.
Current DoorDash partners can set up a Storefront for their website in minutes.
Companies not already enrolled in DoorDash are eligible, too.
However, the setup process can take up to three weeks for companies not already registered.
The fees for the Drive program aren’t commissions or subscriptions.
Using Drive’s white-label service, a business can get on-demand delivery from a Dasher.
Customers can order through DoorDash, another app, or the company website.
Instead of a commission on each order, DoorDash charges a flat fee of $6.99 – $10.99 per delivery order.
DoorDash for Business Comparisons
Business owners have several options for delivering to customers.
Here’s a breakdown of other delivery services compared to DoorDash.
DoorDash vs Uber Eats
Uber is a peer-to-peer ridesharing platform.
The company offers matches between people who want a ride and people willing to drive them for a fee.
Uber has expanded into other services, including the Uber Eats restaurant delivery service.
Their model is like DoorDash.
They charge identical commission fees on three service tiers, but their self-delivery program charges a higher fee.
DoorDash dominates the meal delivery market with 58% of sales.
Uber Eats is second with 24% of the delivery market.
A company won’t reach the same number of potential customers through Uber Eats.
DoorDash vs Grubhub
According to Bloomberg, Grubhub controls 14% of the meal delivery app market.
The pricing is more complex than DoorDash’s plans.
Grubhub charges a flat commission of 10% for delivery and can add another 20% or more in marketing fees.
Some plans also have a credit card processing fee of $0.30 plus 3.05%.
DoorDash vs Caviar
DoorDash acquired the Caviar delivery platform in 2019.
They market it separately from their DoorDash flagship brand.
Caviar is the official delivery partner of Michelin. Michelin creates the Michelin guide to the finest restaurants and hotels.
A Michelin star is a sign that a restaurant is a top-class establishment.
Michelin stars only go to the finest restaurants worldwide.
According to DoorDash, Caviar users spend 55% more than the average meal delivery app user.
As a result, upscale restaurants offering high-end dining can use Caviar to reach more customers.
Caviar charges up to a 30% commission fee from restaurants and up to an 18% delivery fee from customers.
DoorDash vs Deliveroo
Deliveroo is a British restaurant delivery service available in the UK.
It’s also available in some countries in Europe and Asia.
Along with Just Eat, Deliveroo is one of the UK’s top food and grocery delivery services.
Deliveroo charges 20% or more in commission with a fee cap of 30%.
Where Is DoorDash for Business Available?
DoorDash is available in over 7,000 cities. Drivers deliver across Canada, the United States, Europe, Japan, Puerto Rico, and Australia.
Some of the major cities where businesses can use DoorDash include:
- Washington DC.
- San Francisco
- New York
- St. Louis
- Las Vegas
- San Jose
DoorDash delivers in all 50 US states and regularly expands into new cities in the US and other countries.
How to Set Up DoorDash for Business
Signing up for DoorDash for business is easy.
Go to the sign-up page on the DoorDash website and enter your business information into the form.
This information includes:
- Business name
- Business address
- Email address
- Phone number
- Business type
The business type you choose can be one of these options:
- Flower shop
- Pet store
After you submit the form, a DoorDash representative will contact you.
You’ll have access to the DoorDash for business tools after they create your account.
You’ll be able to create a personalized storefront with items for sale.
You can add prices, photographs, and descriptions to entice customers.
Final Thoughts on DoorDash for Business Fees
Businesses that want to expand their offerings can benefit from DoorDash for business.
Fees are a percentage of sales rather than flat amounts each month.
This structure makes it a more affordable program than many other options.
Millions of people use DoorDash each month for meal delivery, which offers a platform for restaurant owners to find new customers.
New customers mean more sales, more profit, and more success.
You can sign up for DoorDash today and start delivering to customers for free.