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DoorDash to cut commissions by 50% for local restaurants

Friday 10 April 2020 11:56 CET | News

DoorDash has revealed it will be reducing commission fees by 50% for orders placed on DoorDash and DoorDash-owned Caviar for all of its local restaurant partners.

The commission relief program will begin on 13 April and run through the end of May. The program will benefit more than 150,000 local restaurants – defined by DoorDash as one with five or fewer locations – in Australia, Canada, and the US.

DoorDash said this is an ‘injection of up to USD 100 million’, but that dollar amount represents the accumulated total of reduced commissions. This works as follows: if a local restaurant previously paid a USD 2.50 commission to DoorDash on an order, it would now pay USD 1.25 because of the reduced commission rate. The USD 1.25 that the restaurant didn’t pay because of the reduced commission rate would count toward that USD 100 million figure. However, even if the total value of reduced commissions exceeds USD 100 million before the end of May, the reduced commissions program would continue.


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Keywords: DoorDash, commissions, local restaurants, DoorDash, Caviar, US, local restaurant, ecommerce, payments
Categories: Banking & Fintech | Payments General
Countries: United States
This article is part of category

Banking & Fintech