DoorDash offers lower-priced delivery plans amid criticism

FILE - The DoorDash app is shown on a smartphone on Feb. 27, 2020, in New York. DoorDash is launching lower-priced delivery options for U.S. restaurants, responding to criticism that the commissions it charges are too high for the beleaguered industry. The San Francisco-based delivery company said Tuesday, April 27, 2021  it will offer a new basic plan which will charge restaurants 15% per order for delivery, or around half the cost of previous plans. (AP Photo, File)
FILE - The DoorDash app is shown on a smartphone on Feb. 27, 2020, in New York. DoorDash is launching lower-priced delivery options for U.S. restaurants, responding to criticism that the commissions it charges are too high for the beleaguered industry. The San Francisco-based delivery company said Tuesday, April 27, 2021 it will offer a new basic plan which will charge restaurants 15% per order for delivery, or around half the cost of previous plans. (AP Photo, File)

DoorDash is launching lower-priced delivery options for U.S. restaurants, responding to criticism that the commissions it charges are too high for the beleaguered industry.

The San Francisco delivery company said Tuesday it will offer a new basic plan that will charge restaurants 15% per order for delivery, or around half the cost of previous plans. That plan will limit the delivery area and shift more delivery costs to customers — they might pay $4.99 instead of $2.99, for example.

Restaurants can pay more — commissions of 25% or 30% — for other plans if they want a larger delivery area, more visibility in DoorDash’s app or lower customer delivery fees.

DoorDash said local restaurants and chains with less than 75 locations are eligible for the new rates. The company wouldn’t say how many of its partner restaurants meet that criteria. But DoorDash delivers from nearly 400,000 restaurants using a network of 1 million freelance drivers.

Even before the pandemic, DoorDash, Grubhub and other delivery companies had a rocky relationship with restaurants, who criticized their high fees, lack of transparency and sometimes spotty service. That relationship was further tested by the pandemic, which closed dining rooms, greatly expanded customer demand for delivery and forced many restaurants to shift to carryout and delivery to survive.

Sympathetic lawmakers temporarily capped delivery companies’ commission fees — generally at 15% — in dozens of cities and states during the pandemic in an effort to help restaurants. In those cities, DoorDash said, the new rates will go into place once those caps expire.

But DoorDash insisted the caps weren’t the reason it changed its fees. Instead, the company said it was acting in response to restaurant owners who wanted more options. DoorDash Chief Operating Officer Christopher Payne said the company spent the last six months developing a plan that would help restaurants but still ensure drivers — and DoorDash itself — can make money.

“One size fits all really doesn’t work with restaurants,” Payne said.