DoorDash announced that it’s reducing commissions for local restaurants by 50 percent on DoorDash and Caviar.
Here’s a letter the company released Thursday:
“Today, the world is reeling. Families are sheltering in place. Once-bustling businesses have closed. City streets are largely quiet. Over the past month, the DoorDash team has responded to the unprecedented health crisis by supporting our community of consumers, Dashers, and restaurants. We’ve also opened up our platform to support health care workers, homebound seniors in need of groceries, and kids who rely on school lunches.
But even with government assistance kicking in, more is needed to give the most vulnerable restaurants a fighting chance. In response to the acute financial threats that local restaurants are facing right now, we will be reducing commissions for all of our local restaurant partners by 50 percent on both DoorDash and Caviar. This commission relief program—which will benefit more than 150,000 local restaurants in the United States, Canada, and Australia—will begin on April 13 and continue through the end of May.
This $100 million injection 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. We continue to hear from our restaurant partners that driving growth in sales is the most effective way to help. We are doing our part by offering free delivery every Saturday. 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.
We believe that doing our part is critical during this unprecedented time and that government-imposed, one-size-fits-all solutions do not reflect the needs of the businesses they are intended to help. Arbitrary caps can cut off a lifeline for many consumers and deprive Dashers and Couriers of the earnings they need, now more than ever. Restaurant fees are necessary to keep Dasher earnings high and support all of the services restaurants and consumers need. But that doesn’t mean we’re not prepared to do our part in this acute moment of need to truly come together.
Brighter days are coming. There will be a time when restaurants reopen their doors, set the table, and welcome guests to celebrate. We’ll be right there with them every day until that day, and every day that follows.”