DoorDash Canada moves to tiered commission system, charging some restaurants 29%

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DoorDash Canada moves to tiered commission system, charging some restaurants 29%
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DoorDash is changing the way it charges commission to Canadian restaurants with a new, tiered model.

The San Francisco-based food delivery service announced the switch Tuesday, saying it will offer restaurants more “flexibility” and help them take advantage of digital growth opportunities.As the Canadian national soccer teams head to their respective FIFA World Cups, Derek Van Diest is on the scene to cover all the action. Expect expert insights and analysis in your inbox daily throughout the tournaments, and weekly on Thursdays for the rest of the season.

Arora declined to say how different the tiers and their commission levels are from DoorDash’s current Canadian offerings, but food delivery apps have been known to charge as much as 30% on couriered orders. However, Brian Kaufmann, DoorDash’s head of Canada policy and government relations, defended the rates, saying they are the product of conversations with a restaurant advisory council, merchants on the platform and other business associations.

Since then, health measures like temporary closures and masking mandates have largely been dropped, but many have stuck with apps like DoorDash.“We obviously see pickups pick up, for lack of a better word, in the summer months and then deliveries are obviously more appreciated as the weather starts to become a little bit harder to get out,” she said.

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