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.