DoorDash Updates Fee Structure Based on Order Size

DoorDash introduces a new fee structure that varies based on delivery distance and order size to better reflect delivery costs.

The fees on your next DoorDash order could change depending on the size of your order or how far your delivery worker has to travel.

DoorDash announced an overhaul of its customer fee structure on Thursday, stating that the new system would be rolled out across most of the U.S. over the coming months.

Under this revised system, the service fee customers are charged can vary significantly based on order size and delivery distance. Additionally, orders that exceed 10 miles may be subject to a separate long-distance fee.

While the delivery fee will remain fixed, differing by merchant, the new structure aims to more accurately reflect the costs involved in completing deliveries, as emphasized in a blog post by the company.

This new fee structure marks the latest update to the DoorDash app, following the introduction of an AI tool that allows users to order groceries by uploading a shopping list or recipe.

As gig workers for delivery apps like DoorDash and Uber Eats often consider factors such as travel distance when accepting orders, these changes have become particularly relevant with the rise in gas prices—a situation exacerbated by recent conflicts involving the U.S. and Israel in Iran.

According to DoorDash, approximately 70% of recent orders would have incurred lower fees under the new system. However, a DoorDash representative did not provide immediate clarification on how the fee structures would work.

The company is also implementing app features aimed at increasing transparency regarding fees for customers. For instance, a new “Farther Away” label will be added to orders from restaurants that could incur extra service fees due to distance.

Notably, the initial rollout of the new fee structure will not include areas such as California, Chicago, Colorado, Washington D.C., Massachusetts, Minnesota, New York City, Puerto Rico, and Seattle.