DoorDash and Caviar to slash food delivery fees by 50%

The “commission relief program” throughout the United States, Canada, and Australia would help more than 150,000 restaurants with five locations or fewer, the company says.

A masked food delivery worker for Caviar making his way down Broad Street near Chestnut.Read moreHEATHER KHALIFA / Staff Photographer

by Michael Klein

Published April 10, 2020, 10:32 a.m. ET

DoorDash and its newly acquired Caviar delivery service will reduce commission fees for most restaurants by 50% from Monday through the end of May.

DoorDash Inc. said in a statement that the “commission relief program” in the United States, Canada, and Australia would help more than 150,000 restaurants with five or fewer locations. It estimated the total savings at $100 million.

Commissions are a recent source of ire among restaurateurs, who accuse the services of profiteering during the coronavirus crisis, which has closed dining rooms and left operators with few alternatives. Restaurants pay up to 30% commission on delivery orders — a punishing fee to a business with slim margins.

Rival Grubhub seems to be sticking to its plan announced in March to defer collection but not eliminate or reduce its commissions.

Last month, DoorDash announced a plan to charge no commission fees for 30 days for independent restaurants in the United States, Canada, Puerto Rico, and Australia that sign up with DoorDash and Caviar for the first time, and to waive commissions for all existing DoorDash- and Caviar-affiliated restaurants on pickup orders.