Restaurants pay top dollar for delivery services again, Door Dash changes pricing model
TUCSON (KVOA) – Businesses are back to paying the full cost of app-based delivery services after a city ordinance was lifted to protect restaurants during the pandemic.
N4T investigators began to look into issues with Door Dash after the so-called “Tucson Fees” added a $ 2 premium to customer orders in response to the city’s order. This shocked several regular Door Dash customers we spoke to.
“If you’re going to pass the cost on to whoever, it shouldn’t be the consumer,” said Isaiah Garcia.
Before the ordinance, many companies paid commissions of up to 30%. The ordinance, passed in October, caps fees at 15 percent.
Mary Brinley is a manager and the owner’s daughter at Joe’s Pancake House on the east side of Tucson. She contacted the investigators of N4T concerned by the return to 30% of the commissions. She said the change was made overnight without any warning.
“Without any warning or ‘the hay is going to change’ they raised it to 30%,” said Brinley.
For a short time, she said they still charge the “Tucson fee” and charge businesses the normal commission fee. It has since changed.
Door Dash sent N4T investigators the following statement:
In response to the price control in Tucson, we have implemented a minimal fee to ensure we can continue to provide high level service to merchants and customers while paying the significant profits for Dashers. We lifted those fees earlier this month and launched a new price update that allows all US restaurants on the platform to choose a pricing plan starting at 15%.
Door Dash has sent us information about their new pricing plans. They offer a 15%, 25% or 30% rate with more perks plus restaurants pay.
Brinley said she doesn’t believe the change is a reasonable solution at this time, as many companies like her are still feeling the effects of the pandemic.
“If I wanted to reduce, say, to 15%, then they would increase the shipping cost by at least $ 3 to $ 4 per consumer and reduce our delivery radius to three miles. We have to try to find the balance between raising our prices on the platform and making sure it’s not too much for our consumers and making sure that we don’t waste money on the sale at the same time, ”he said. explained Brinley.
The city said the ordinance was gone as it was supposed to.
“The city ordinance made it very clear what time it would come into effect, until the governor lifts the ordinance and business can get back to normal,” the Tucson spokesperson said. , Andy Squire.
Other delivery services like Grubhub and Uber Eats are also able to charge their normal commission rates, the two companies told us they never charge extra in response to the order.
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