Business

Doordash’s new pricing structure can cost more to customers

Doordash is trying to give more control over the fees charged by restaurants in response to the widespread backlash from moms and pop restaurants over the economics of distribution apps.

On Tuesday, the food delivery company launched a new à la carte menu service in preparation for more people to avoid takeaway in exchange for seated meals.

With the new commission, restaurants can choose to pay only 6% of their orders, which can be increased to 15%, 25% and 30% depending on their needs. Previously, restaurants were forced to negotiate prices. As a result, many small restaurants fork more than 30% of all food orders to tech giants simply because customers chose to order food from their website or app rather than calling the restaurant directly. was doing.

“DoorDash is excited to offer new and better options that allow businesses to choose the products and services they need,” said David London, Head of Government at DoorDash, in a statement.

However, the new rates for San Francisco-based companies will cost consumers.

Customers who choose the cheapest doordash service will be hit with a $ 5 shipping fee, while customers who choose the Cadillac version will only pay a $ 2 shipping fee.

In recent years, tensions between restaurants and shipping companies such as GrubHub and UberEats have created new pricing.For example, in 2019, the restaurant Published posts The fake fee system GrubHub charged restaurant owners for orders that were never made.

After the pandemic, many city governments, including New York, mandated distribution apps 15% or less charge On a per-order basis to help the restaurant industry survive state-mandated blockade orders. Most of the price caps are temporary, according to industry sources, but some lawmakers are aiming to make them permanent.

Sign reading close-up "You will receive the door dash here."
In recent years, tensions between restaurants and shipping companies such as GrubHub and UberEats have created new pricing.
Gado via Getty Images

Shipping company fought a pandemic capInsisted that consumers would pay more and restaurants would lose their business. In fact, many delivery companies have done better than ever because during the pandemic, consumers trapped in their homes deliver more often for their meals.

“This is to listen and make adjustments to our merchant partners,” said Christopher Payne, Chief Operating Officer, according to a report from The Wall Street Journal. “Basically, we’ve learned together what a restaurant needs and tested the way what the next stage of pricing should be.”

Doordash’s share rose more than 3% on Tuesday morning.

Doordash’s new pricing structure can cost more to customers

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