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DoorDash might be hungry for more cash.
The delivery giant said in a press release that it will begin updating consumer fees based on two factors: how far your order travels and how much effort it takes a Dasher to complete it. These new delivery and service fees could lead to a higher cost — or a lower one — depending on how “easy” your order is to fulfill.
DoorDash confirmed there will still be a standard delivery and service fee. Under the update, however, the delivery fee will be a fixed charge set by the vendor and may vary by merchant. Meanwhile, the service fee will now fluctuate based on distance and order size.
The updated fee structure will begin rolling out in select cities today.
Customers may also see a “long distance fee” tacked onto a small number of deliveries when orders travel more than 10 miles. For “transparency,” the delivery company has also added a tab in the app that alerts customers ordering from farther away to any potential higher fees.
DoorDash is also offering an in-app explainer that notifies users how the fees work. Plus, a new breakdown showing customers’ subtotal, fees and discounts is rolling out on store pages, allowing users to tap and view the information while building their cart.
A spokesperson told The Post that the changes may actually result in lower costs for some consumers, since those ordering from nearby restaurants will avoid the higher distance fee. Of course, that won’t matter if your go-to spot is more than 10 miles away.
“Under the new model, the fee a consumer pays will more closely reflect the distance and effort involved in their specific order. This means that if you order from nearby, you may pay less in fees than if you order from farther away,” the representative said.
The company also told The Post that, after analyzing more than 70% of recent orders, customers would have paid the same or less under the new fee structure. “For orders that would have cost less, consumers would have seen a median savings of 78 cents per order,” the company official added.
Every fee and tax will continue to be displayed in full on the checkout screen before an order is finalized. While the updates will begin rolling out in select cities today, customers in California, Chicago, Colorado, the District of Columbia, Massachusetts, Minnesota, New York City, Puerto Rico and Seattle will not see them until a later date.
For Dashers themselves, nothing will change. “This change is about consumer fees,” the company said in its press release. Dashers will continue to be paid for their time and effort, and many earn more on longer-distance deliveries, the company said.
“This updated fee structure helps ensure we can continue to offer Dashers pay that reflects the effort involved in each delivery, while still giving consumers the ability to order from their favorite stores — including ones farther away,” the press release continued.
Regardless of any potential savings, customers tend to hear only one word: fees. Users on X quickly blasted the changes, with one calling the move “a bait and switch.”
What appeared to be an employee got in on the action, writing, “Yeah, good to know DoorDash is gonna add fees, most of which won’t go to us, reducing tips and overall earnings in the near future.”
