News

DoorDash CEO wants to support restaurants, protect drivers

March 17, 2020

Doordash CEO Tony Xu said the company wants to help restaurants survive the recent closures triggered by COVID-19 by providing them with a package of commission relief and marketing support. The goal is to help them generate up to $200 million in additional sales this year, which is why the company is allowing restaurants to sign up for DoorDash and Caviar services and pay zero commissions for 30 days.

"This is not a deferral of fees, nor will merchants be asked to pay anything back," Xu said in a press release. "Around the globe, the restaurants that form the backbone of our communities are being asked to change how they operate.

"From limiting their occupancy to closing their doors to dining guests, these businesses are facing the prospect of lost sales, making it harder for them to meet their daily expenses. Yet these restaurants continue to serve their customers by remaining open for delivery and pick-up, and now, more than ever, they need all of our support."

For all existing DoorDash partners, restaurants will pay no commission fees on pickup orders so customers can spend less time in the store.

"We are also providing additional commission reductions for eligible merchants that are already on DoorDash," Xu said. "We're adding more than 100,000 independent restaurant partners to DashPass — our subscription program which offers $0 delivery for consumers — for free."

Merchants on DashPass see higher sales, which are critical to helping restaurants through this difficult period, he said.

"We're also reducing commissions for those merchants already on DashPass, and providing all Caviar restaurants with the opportunity to participate in a $0 delivery fee program," Xu said.

He said the company was also earmarking up to $20 million in merchant marketing programs to generate more revenue for restaurants that are already on DoorDash.

Helping drivers
To ensure that drivers diagnosed with COVID-19 or quarantined can focus on recovering, Doordash is providing them with up to two weeks of financial assistance.

"We also know that many restaurant workers are finding themselves with fewer hours — hours they need to support themselves and their families," Xu said. "So we are creating a priority access program to help these workers sign up as Dashers and begin making deliveries safely, enabling them to meet their financial needs until their jobs return to normal."

The company is also shipping more than 1 million sets of free hand sanitizer and gloves to Dashers and is changing the default delivery method to a no-contact option to minimize contact between Dashers and customers.

With this update, 'Leave it at my door' will be the default drop-off option, and customers will have the choice to select 'Hand it to me' if they prefer. Xu said, however, that he has advised Dashers that they may initiate a no-contact delivery at any time by reaching out to the customer with a call or text message to confirm.

Helping the community
Lastly, Doordash is joining forces with community organizations to deliver an estimated 1 million pounds of groceries and prepared food to those in need.

"Through our national partner, United Way Worldwide, we will power deliveries from local agencies to food-insecure households, serving seniors, low-income families, and mobility-impaired individuals across the U.S.," Xu said. "We stand ready to help other organizations that need last-mile delivery support, and we invite them to connect with us by visiting our intake site."

The company is also supporting local institutions including the San Francisco-Marin Food Bank, Fresher Sacramento, and the Greater Chicago Food Depository.