As the needs of restaurants and small businesses continue to change and a post-pandemic world opens up, DoorDash is also evolving and growing. In order to better serve our business partners and local stakeholders — and inspired by their feedback — we are changing how we do business so merchants can choose exactly how they work with us.
Introducing New Partnership Plans for the DoorDash App
As of April 27, 2021, all local restaurants in the U.S. will be able to choose from one of three different Partnership Plans to decide how they partner with DoorDash and Caviar. Merchants can choose either DoorDash Basic, DoorDash Plus, or DoorDash Premier. Each plan varies from one to the next, and each has a different delivery commission rate, which corresponds to the plan’s level of marketing support and benefits.
All DoorDash Partnership Plans have $0 activation fees. We’re also offering new merchants a 30-day trial with 0% commissions so you can try the plan that works for you.
With a low 15% delivery commission, DoorDash Basic is the most cost-effective way for restaurants to offer delivery and pickup to customers on the DoorDash app. Though the Basic plan has a smaller delivery area than Plus and Premier, restaurants can expand their reach on Basic with optional, a la carte marketing programs.
Jai Meals operates out of a local mall, so delivery has been an important part of how I have made up for lost income over the past year of dine-in closures. Despite this, my previous commission didn't work for my business; it was hard to absorb that high of a cost, especially when delivery became a large percentage of my orders. With the Basic plan, I can offer delivery to customers, who increasingly enjoy the convenience delivery provides, but at a cost that is more aligned with my products, my goals and my customers’ needs.
With the 25% delivery commission rate of DoorDash Plus, restaurants can increase sales with an expanded delivery area and DashPass, our customer loyalty program that serves high-value customers who order more frequently. Restaurants who participate in DashPass get increased visibility in our app, and DashPass customers pay reduced fees when they order from DashPass stores. Because DashPass customers order more often, participating restaurants are likely to see increased growth.
With DoorDash Premier, restaurants can maximize sales with the largest delivery area, along with access to our frequent, high-value DashPass customers. The Premier plan also offers the security of our new Growth Guarantee: For all restaurants on the Premier plan that accept 20 orders or fewer per month across Pickup, Delivery, and Caviar, DoorDash will refund their commission costs for that month.*
We are a new restaurant who just opened our doors in December of last year. To help grow our business, we partnered with DoorDash in March, and have been excited by the early reception from local customers. We are seeing incredible sales and growth through the app, and even Dashers are coming back to order their dinner after they complete a delivery. As a new business, we can’t predict what six months or a year will look like or what our needs will be. Right now, the Premier plan makes sense for us to continue growing, but it's great to have the option to move to a plan that might be better aligned with our future goals. That flexibility is key as we are just starting out.
*Partners are eligible for this rebate only if (1) if they cancel fewer than 5 orders that month and (2) maintain “open hours” on DoorDash for 90% of the Store Hours that they have set in the Merchant Portal.
New Pickup Pricing (6%)
The pickup commission rate across all plans is being reduced from 15% to 6%, giving our partners the opportunity to use DoorDash to connect directly with customers in their neighborhood at a significantly lower cost. This rate, and all delivery rates, includes payment processing costs.
A Commission-Free Option with Storefront
Last year, DoorDash launched Storefront, an online ordering system that allows businesses to incorporate DoorDash ordering, delivery, and pickup logistics directly into their website, with zero commissions. Storefront enables businesses to turn a standard informational site into an e-commerce site, allowing them to own more parts of the customer relationship, including customer insights and ordering data.
Previously only available to restaurants who were on the DoorDash App, Storefront is now available to all restaurants in the U.S., whether or not they are already partnered with DoorDash.
While Storefront has always been commission-free, DoorDash is doing away with the one-time set-up fee, monthly software fees, and per-order delivery fees. The only fees restaurants will pay when using Storefront are credit card processing fees at 2.9% of the total transaction amount + 30 cents per order.
We currently use Storefront across 8 of our locations. Over the past year, when every order and dollar counts, Storefront has saved some of our businesses - enabling us to convert website traffic to sales without any commission fees. With Storefront, DoorDash is taking what it has built over 8 years and making it available for its small business partners, and now, with reduced fees. This is a game changer for us and so many other independent restaurants who are looking to build their own online ordering platform.
An Ongoing Partnership
These changes were developed in response to direct feedback from business owners and as part of a larger effort to help increase their profits. As the industry continues to evolve, DoorDash is committed to listening to feedback from our restaurant partners, including at monthly Restaurant Advisory Council meetings, and providing services and solutions that are helpful, impactful, and fair.
Working with DoorDash
If you’re not sure which Partnership Plan is right for your restaurant, take this short quiz to determine which solutions might work best for your business goals.