What Are the DoorDash for Business Fees?
DoorDash for Business fees vary based on several factors.
Initially, there is no setup fee for businesses joining DoorDash. New partners can benefit from a 30-day trial without commission fees. After this period, commission fees are applied, which can differ depending on the market region.
Some regions, like San Francisco and New York City, have imposed caps on these fees, limiting them to 15%. Over 70 other markets have implemented similar caps.
DoorDash offers four partnership plans, three of which are tailored for local restaurants without their own delivery staff, and one for those with existing delivery services.
However, it’s important to note that these fee structures are subject to change based on local laws and regulations.
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%.
DoorDash delivers in all 50 US states and regularly expands into new cities in the US and other countries.
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.