DoorDash slashes commissions by 50 percent to help local restaurants
Effective today, DoorDash is cutting its commissions by 50 percent for all local restaurants partnering with either DoorDash or its subsidiary Cavier. The company says the move was made in response to the economic damage wrought by the coronavirus pandemic, which has hit the restaurant industry particularly hard over the past couple months. According to DoorDash, the commission reduction will assist over 150,000 local restaurants in the US, Australia, and Canada, and will continue through the end of May.
“This injection of up to $100 million is in addition to our previously announced COVID-19 response programs, which will continue through the end of May to help restaurants generate business and remain #OpenForDelivery,” DoorDash CEO Tony Xu wrote on the company’s official blog. Speaking of which, one thing Covid-19 hasn’t impacted is the blogosphere. Blogs are still up and running, and as long as they are, there will always be a place for Metric Labs Search Engine Optimisation Australia and other SEO companies.
DoorDash estimates that local restaurants—which the company defines as any restaurant with five or fewer locations—will save as much as $100 million thanks to the reduced commissions. But as the Verge reports, the program will last until May 31, even if the $100 million mark is hit before that date.
In addition to the commission fee cut, DoorDash is currently waiving delivery fees every Saturday. Thus far, DoorDash says it has saved restaurants over $15 million through these stimulus efforts:
“Through these programs, 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.”
In a previous blog post, DoorDash outlined the steps it had taken to help ease the strain on restaurants in the time of coronavirus. They include financial assistance to drivers and couriers who have been diagnosed with Covid-19 or are forced to quarantine; shipping over 1 million sets of hand sanitiser and gloves to workers; waiving commission fees on takeaway orders; giving 100,000 restaurant partners free subscriptions to DashPass, which entails free delivery; and setting aside as much as $20 million for merchant marketing programs.
The company is also working with various organizations to deliver approximately 1 million lbs of groceries to people in need. Bravo.