How Much Does DoorDash Cost? Cut Delivery Fees with These Proven Tips

Let’s talk about third-party delivery apps like DoorDash. If you own a restaurant, you’ve probably noticed just how high the fees can be with apps like DoorDash.

These apps can help bring in new customers, but their fees—up to 30% per order—can take a big chunk of your earnings. It’s no surprise that 49% of customers in our survey think these fees are too high, especially since some of the cost gets passed on to them.

But understanding these costs might help you find smart ways to reduce them and focus funds on growing your sales.

In this guide, I’ll explain how much DoorDash charges restaurants, plus highlight other platform options. I'll also share some of my best tips to help lower your delivery fees and increase your restaurant sales.

DoorDash fees breakdown

Understanding DoorDash's fee structure can help you make smarter decisions for your restaurant. And it can grow your profits while you navigate the world of food delivery apps. DoorDash offers merchants three different pricing structures. I’ll break the plans down below:

• Basic: This plan is the most cost-friendly option. They let you try it for 7 days for free, then will charge you 15% on commission per delivery order. 

• Plus: This one lets you try for free for 30 days, then charges 25% commission per delivery order. It also includes DashPass which can help increase sales by accessing customers who pay no delivery fees and lowered service fees. This plan also serves a wider delivery area than the basic plan. 
• ‍Premier: The highest-tiered plan charges 30% in commission per delivery order and lets you try for free the first 30 days. It includes all of the perks of “Plus” and also features a “Growth Guarantee”—this means that DoorDash will refund your commission costs for the month if you accept at least 20 orders.

How DoorDash compares to similar apps

DoorDash’s delivery fees can be a bit pricey, but it's a fantastic way to reel in new customers. But once you've hooked your new customers, it's more lucrative to steer them toward direct orders on your website rather than using another platform.

Below, I’ll cover some great DoorDash alternatives for restaurants that can help you save money on delivery, plus a comparison of these fees for each alternative:

Grubhub

Grubhub is another food delivery app option that has a max delivery fee of 10%. They also have a marketing fee ranging from 15% to 25% depending on the plan. 

Commission fees don’t have to turn you away from an app, and it’s important to consider its popularity with customers. However, Grubhub is becoming less popular than the other apps. For example, its market share has dropped from a high of 70% to less than 20% as of 2020.  

This app is also best for select cities as it’s not widely available. GrubHub mostly covers larger cities like New York, Boston and Chicago. So, you should double-check that your location is covered if you choose this option.

Postmates

Postmates operates similarly to platforms like DoorDash and Uber Eats. Since Uber owns Postmates, its pricing structure is also comparable, with commission fees ranging from 15% to 30%, just like Uber Eats and DoorDash.

However, what makes Postmates stand out is that they’re partnered with over 600,000 merchants making it a widely available app. 

You also have to pay a direct deposit fee when you cash out your earnings from the app, which adds to the overall costs of using this platform.

Uber Eats

Uber Eats and DoorDash are similar in that they’re both a solid platform for restaurants in the beginning stages. It currently has a commission fee of 15% to 30% depending on which pricing model you choose. This pricing is comparable to the other pricey third-party delivery apps. 

Additionally, Uber Eats is the most popular food delivery service. They currently have 88 million users internationally. It’s also more widely available than apps like Grubhub—serving 10,000 cities as of 2022.

Owner.com

If you’re looking for an alternative to DoorDash that can help you save more money on delivery, try out Owner.com. This platform is made specifically to drive sales and make upselling easier. Plus it features commission-free delivery.

Talkin’ Tacos’ online menu using Owner.com for their restaurant website.

Owner.com isn't just another delivery platform—it's designed to increase the number of orders you get and help you (and your customers) save on delivery fees compared to DoorDash’s high fees. 

Here’s how Owner.com helps increase sales and orders: 

• Charges a flat fee instead of high commissions. You can use third-party drivers without having to pay extra. All you have to do is pay a simple flat rate that is billed monthly to get everything on the Owner platform—no commission per order needed. 
• Boosts customer satisfaction. Nearly 40% of customers say they’ve noticed restaurants offering less value lately. By providing convenient direct ordering with a mobile app and keeping delivery fees reasonable, your restaurant can stand out and win their loyalty.

It’s a win-win—you’ll save money, and your customers will keep coming back for the value. 

For example, Phillip Hang, the owner of Sushi Me Rollin’, needed help getting people to order directly through his restaurant, so he teamed up with Owner.com. As a result, Hang has stated that Owner.com “is the best technology in our restaurant. We’ve increased direct online sales by over $77,000 in the past 10 months alone.”

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Third-party delivery fees explained 

Third-party apps are all about making things easy, and they can help your restaurant reach a lot of new customers. For example, some apps let you pay for better placement so your restaurant shows up more often.

But if you're trying to save money on delivery orders, you might want to think about using a different online ordering system. I'll explain this below.

Tips to lower your delivery fees

 As a restaurant owner, finding ways to cut restaurant costs and boost sales is always a priority. One key goal is to reduce the cost of delivery—for both you and your customers. But here’s the good news: you don’t have to shoulder the entire cost yourself.

In fact, our data shows that charging a small delivery fee, like $4, can strike a balance. It helps cover costs, reduces the burden on your customers, and can even drive more sales.

To make that $4 delivery fee work for you, it’s essential to lower your overall delivery expenses. Here are some tips I suggest you try:

• Add in-house delivery capabilities: If you haven’t already, I recommend setting up your website so you can avoid third-party delivery services and have customers order directly through you.  A website builder, like Owner.com, has those online delivery capabilities. It has all you need to drive more direct orders with restaurant SEO baked in to help customers find you better, as well as strategic upsells.
• Make flyers to promote direct orders: Consider giving out flyers in delivery bags so your regulars order from you next time. This can help promote your online delivery services—you can also include a promotion code, so they’re more enticed to make an order. 
• Set up a loyalty program to reward direct orders: To get more customers to order directly through your website, consider integrating a loyalty program that rewards them every time they order on the website vs. apps like DoorDash.  
• Encourage pick-up orders: Want to save on delivery fees? You can offer special deals or discounts to customers who swing by to pick up their orders instead of having them delivered.‍
• Adjust menu prices on your website: Make your menu prices higher on third-party apps than on your website. If you choose to do this, highlight the value of ordering directly through your website and how it will be cheaper for your customers.

If you need more tips on how to save money on delivery orders, take a look at my video below:

Cut down on delivery costs with in-house delivery 

There are many third-party apps out there that you can use to help with your online delivery orders, but if you want to steer your focus towards increasing your sales and saving on delivery costs, then Owner.com may be the right route for you. 

Partnering with third-party apps such as DoorDash can be a great marketing tool to promote your restaurant and get new customers. However, if you want to save on commission costs, consider Owner.com’s online ordering system. That way, you can make online ordering easier and save you and your customers money. 

Ready to save on delivery fees? Get a free demo of Owner.com today and start cutting costs.

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