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DoorDash Overhauls Fee Structure for US Deliveries

Created at 24 Jul · 3:21 PM1 source↑ Market-relevant
IN SHORT

DoorDash is implementing a new fee structure across most of the US, aiming to better reflect delivery costs. The changes will vary service fees based on order size and distance, with some orders potentially seeing lower costs.

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Key Numbers

70%recent orders with lower fees under new system
10 milesdistance for potential long-distance fee

Who's Involved

DoorDash
delivery platform implementing new fee structure
Alex Bitter
reporter covering DoorDash and the gig economy
DoorDash Overhauls Fee Structure for US Deliveries

↳ Why This Matters

This fee structure change directly impacts the cost of food delivery for millions of consumers and could influence the earnings of gig workers who rely on these platforms for income.

Key facts

  • DoorDash is changing its customer fee structure, rolling out nationwide over the coming months.
  • Service fees will now vary based on order size and delivery distance.
  • A 'Farther Away' label will indicate orders that may incur higher service fees.
  • The company claims about 70% of recent orders would have been cheaper under the new system.
  • The rollout excludes several US states and cities.

DoorDash is overhauling its customer fee structure, a change set to roll out across most of the U.S. in the coming months. The company stated the new system is designed to "better reflect what it takes to complete your delivery." Under the revised model, service fees will fluctuate based on factors such as the size of an order and the distance from the restaurant to the customer. Orders traveling more than 10 miles may also be subject to an additional long-distance fee. The delivery fee itself will continue to be a fixed amount that varies by merchant. DoorDash claims that approximately 70% of recent orders would have incurred lower fees with this new structure. To enhance transparency, the app will introduce features like a "Farther Away" label for orders that might result in higher service fees. However, the initial rollout will not include California, Chicago, Colorado, Washington D.C., Massachusetts, Minnesota, New York City, Puerto Rico, and Seattle.

Frequently asked questions

DoorDash is introducing a new fee structure where service fees will vary based on order size and delivery distance, aiming for greater transparency and to better reflect delivery costs.

DoorDash claims about 70% of recent orders would have carried lower fees under the new system, but actual costs will depend on individual order specifics.

The initial rollout excludes California, Chicago, Colorado, Washington D.C., Massachusetts, Minnesota, New York City, Puerto Rico, and Seattle.

What Happens Next

01New fee structure to roll out across most of the US over the coming months.

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Cadence

How It Developed

DoorDash announced a new fee structure for customer orders.
The new system will vary service fees based on order size and delivery distance.
Orders over 10 miles may incur a separate long-distance fee.
The delivery fee will remain a fixed charge varying by merchant.
DoorDash stated the changes better reflect delivery costs.
Approximately 70% of recent orders would have had lower fees under the new system.
New app features, like a 'Farther Away' label, will increase fee transparency.
The rollout excludes California, Chicago, Colorado, Washington DC, Massachusetts, Minnesota, New York City, Puerto Rico, and Seattle.
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Sources

T1
What DoorDash's new fee structure means for your next orderBusiness Insider

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