DoorDash announced that the company is reducing commission fees for local restaurant partners by 50% on both the DoorDash and Caviar applications. The company stated that the commission relief program will benefit more than 150,000 local restaurants in the United States, Canada, and Australia and will begin on April 13th and continue through the end of May. This estimated $100M injection from DoorDash is dedicated to helping merchants as they struggle to stay afloat during the COVID-19 outbreak. In the announcement, Doordash added, “This is not a deferral of fees, nor will merchants be asked to pay anything back.”
This new package is in addition to the previously announced COVID-19 response programs, which DoorDash adopted to help restaurant partners generate up to $200M in additional sales. The company already offers zero commission fees for 30 days for independent restaurants in the United States, Canada, Puerto Rico, and Australia who sign up with DoorDash and Caviar for the first time. There are also zero commission fees for all existing DoorDash and Caviar partners on pickup orders. The program also includes more than 100,000 independent restaurant partners to DashPass, DoorDash’s subscription program which offers $0 delivery fees for consumers.
DoorDash also instated a reduction of commissions for merchant partners already in DashPass, and committed up to $20M in merchant marketing programs to generate more revenue for restaurants that are already on DoorDash.
“We have already invested more than $15 million in combined commission reductions and marketing efforts, and we’ve seen restaurants across the country generate millions of dollars in incremental sales—revenue that has been vital to helping them keep their doors open during the first weeks of the coronavirus crisis,” said Tony Xu, CEO and Co-Founder of DoorDash. “We believe that doing our part is critical during this unprecedented time, which is why we are taking further steps to help our restaurant community. Brighter days are coming. There will be a time when restaurants reopen their doors, set the table, and welcome guests to celebrate. We’ll be right there with them every day until that day, and every day that follows.”
“In a time of great financial strain for many businesses, especially restaurants, DoorDash is leading in a way that we would like to see all businesses follow – placing community need over self-interest. There are many restaurants that will be able to keep their doors open during San Francisco’s shelter-in-place order as a result of DoorDash’s emergency relief efforts to reduce fees and increase sales,” said Laurie Thomas, Executive Director, Golden Gate Restaurant Association.
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