DoorDash has created an incredibly accessible way to order takeout and food delivery. This company saw an increase in sales during the pandemic, as restaurants were closing down their dine-in options.
However, customers are starting to complain that the added fees are too high. When you couple the service fees, delivery fees, taxes, and tips, you have a recipe for frustrated customers. So, is DoorDash really overcharging its customers?
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Why Is DoorDash Overcharging Customers?
Depending on how you look at it, DoorDash may or may not be overcharging its customers. According to DoorDash, menu prices are decided directly by the merchant or restaurant. However, these merchants and restaurants typically hike up their prices to offset the fees and commissions from DoorDash.
How Much More Am I Paying?
The million-dollar question everyone wants to know is: How much more am I paying for delivery? Even with DoorDash’s new pricing structure for merchants, this number can still be quite surprising. We’ve done some of our own research, and here are the results:
A basic Chick-fil-A sandwich in our area costs $4.49 before tax. The same sandwich is listed for $5.56 on the DoorDash app, not including tax. That’s an increase of over twenty percent!
It doesn’t stop there. If we use the same process for Chick-fil-A fries, you’re paying $2.99 on the DoorDash app and $2.29 in person. That’s over a 25% price increase.
Generally speaking, customers can expect to pay anywhere from 20%-30% extra when ordering through the DoorDash app. This price increase does not include taxes or any additional fees.
What Are the Fees for Customers?
DoorDash customers are faced with multiple fees upon entering the checkout screen. Although these fees depend on the location and restaurant, they can substantially increase the price of a meal. Here are the fees customers can expect to see upon checking out:
- The base item price
- Taxes (as expected, like a standard restaurant.)
- Optional tips for the delivery driver
- The Delivery Fee (Typically $5.99)
- The Service Fee (Ranges from $1.99-$7.99)
- “Additional Fees” if the order is below the minimum subtotal or during high-volume hours.
DoorDash customers can expect to pay an additional $7.99 to $13.99 when not including the base menu price, taxes, and the optional tip. This can be a hefty fee for some individuals, resulting in frustration and outrage.
What Are the Fees for Merchants?
In the past, DoorDash wouldn’t publicly reveal its pricing and commission structure for merchants. Now, DoorDash has unveiled three new pricing plans for merchants and restaurants.
DoorDash Basic: Restaurants and merchants only pay a 15% commission on deliveries but receive a smaller delivery radius.
DoorDash Plus: Merchants and restaurants pay a 25% commission fee but gain access to DashPass and have increased visibility within the app.
DoorDash Premier: Restaurant and merchants pay 30% in commission fees for the lowest customer fees, largest delivery radius, and a growth guarantee.
How Can I Pay Less as a Customer?
Paying an average of over 20% extra per DoorDash order adds up fast. Thankfully, there are ways you can pay less for takeout using the DoorDash app.
If you frequently order takeout from DoorDash, you should consider signing up for their subscription program, DashPass. DashPass provides subscribers with $0 delivery fees and reduced service fees when ordering from participating locations.
Keep in mind; each order has to be above the $15 minimum. DashPass costs $9.99 per month.
DoorDash and their participating restaurants occasionally offer promotional deals. You can find discounts from various locations, ranging from free delivery to reduced prices.
DoorDash occasionally provides its customers with promotional codes through email. Using promo codes, discounts, and deals can save you money on select orders. You can also occasionally find promo codes and deals for select locations on the DoorDash twitter page.
Is DoorDash Overcharging Me?
DoorDash may be overcharging you for select orders. In general, customers can expect to pay an increase of at least 20% per item when ordering through DoorDash. The takeout service also has added delivery and service fees. Customers can expect to pay anywhere between $7.99 and $13.99 for the delivery and service fees.