Our nearest Pizza Hut delivers via Doordash whether you order direct or through DD, but if you order direct its 30% cheaper. I’m not sure who’s eating the markup.
Doordash charges restaurants a percentage of the gross from the sale. Rather than eat this cost, restaurants are encouraged but not forced to add a markup on the prices they give Doordash (or insert your favorite third party delivery app here). They all do it.
If you order from a store’s own website though, Doordash (I don’t know if other third parties do this) did not “find” or create the business/order… they are really only handling the delivery portion.
In this instance, they still have some fees but do not take the large percentage, as that is a finder or broker fee. They aren’t bringing the restaurant the business, it’s the other way around.
Thus, restaurants can use their normal pricing. If you can find the places near you doing this, it’s a much better deal than using Doordash normally.
In my case, since I get DashPass through my CC (not directly paying for it), I’ve seen it discounted to below the price some restaurants list on their websites. I pick up all my orders myself though.
I wouldn’t pay for DashPass directly, personally speaking at least. I don’t use DD nearly enough to justify investing more into it vs. just ordering on the restaurant’s website or calling in the order. The only reason I even use DD is because I get that as a benefit through my CC and it usually pushes the prices to same or lower as ordering directly.
Our nearest Pizza Hut delivers via Doordash whether you order direct or through DD, but if you order direct its 30% cheaper. I’m not sure who’s eating the markup.
Doordash charges restaurants a percentage of the gross from the sale. Rather than eat this cost, restaurants are encouraged but not forced to add a markup on the prices they give Doordash (or insert your favorite third party delivery app here). They all do it.
If you order from a store’s own website though, Doordash (I don’t know if other third parties do this) did not “find” or create the business/order… they are really only handling the delivery portion.
In this instance, they still have some fees but do not take the large percentage, as that is a finder or broker fee. They aren’t bringing the restaurant the business, it’s the other way around.
Thus, restaurants can use their normal pricing. If you can find the places near you doing this, it’s a much better deal than using Doordash normally.
Good to know. Thanks for the breakdown.
The customer who’s paying the higher price is eating it
In my case, since I get DashPass through my CC (not directly paying for it), I’ve seen it discounted to below the price some restaurants list on their websites. I pick up all my orders myself though.
I wouldn’t pay for DashPass directly, personally speaking at least. I don’t use DD nearly enough to justify investing more into it vs. just ordering on the restaurant’s website or calling in the order. The only reason I even use DD is because I get that as a benefit through my CC and it usually pushes the prices to same or lower as ordering directly.
You’re not wrong