Have you ever wondered why Doordash seems pricier than other food delivery apps?
It’s not just your imagination – on average, Doordash charges $2 more per delivery than its competitors like Uber Eats and Grubhub.
But before you give up on using the app altogether, let’s explore the reasons behind its higher costs and discover five tips to save you some money.
5 Factors Why is Doordash So Expensive?
These are some factors behind the high cost of Doordash food delivery.
Service fees: This is a flat fee charged by Doordash to cover their costs, including driver pay, insurance, and fleet maintenance.
Delivery fees: Restaurants charge Doordash for each delivery made through their platform, which can be anywhere between $3-$6 per order depending on how far away your restaurant is from your location.
Restaurant markups: Restaurants also price slightly when they sell meals through services like Doordash because they don’t have to pay employees wages or benefits.
Peak pricing and surge fees: During busy hours or high demand, Doordash may charge extra fees to incentivize drivers to work, increasing customer costs.
Platform and technology development: Doordash invests in enhancing user experience and implementing advanced features, which require substantial investment and contribute to higher prices on the platform.
Doordash’s Operational Costs
So, what operational costs make up most of Doordash’s expenses?
Employee wages
You may think these employees must make a lot of money, but you’d be wrong.
According to Glassdoor, the average delivery driver makes less than $10 per hour, and tips can make them even more money—which means they have the incentive to work harder and complete more deliveries during their shift.
But this doesn’t mean they’re earning anything close to what they would at other jobs which require similar skill sets (like being a waiter).
Marketing and promotional expenses
For Doordash to compete with other delivery companies like Postmates or Grubhub (and even Uber), they need new customers every day so that restaurants keep using their services instead of another company’s services.
This requires advertising spending, including television commercials during prime time hours and digital ads online through various channels such as Facebook Ads or Google AdWords campaigns.
Collaboration with restaurants
To attract customers and expand its reach, Doordash partners with restaurants for exclusive deals and menu items.
Maintaining strong relationships and promoting these offers through marketing campaigns, such as email promotions and targeted ads, adds to the overall expenses, resulting in higher costs for Doordash users.
The Convenience Factor
The convenience factor is one of the biggest reasons people order food from Doordash. Customers can choose the best delivery time for them, and they don’t have to worry about going out in the cold or rain to pick up their food.
Many customers also like how easy it is to customize their orders through Doordash’s app, which allows them to select dishes based on dietary preferences and allergies.
The company has also worked hard over the years at improving its user interface so that ordering from a mobile device feels seamless and intuitive—and it shows: In 2018 alone, over 40% of all orders placed through its app were placed via mobile devices!
5 Tips for saving money on Doordash
If you’re an avid Doordash customer, these tips will help you save money on every order.
Use a promo code. If you’ve never used one before, look for the “Promo” button on the checkout page and enter any code that applies to your order. You could get $5 off your first order or even free delivery!
Track prices and time them right
Many factors go into determining how much an item costs: location of the restaurant, distance from the driver’s home base, traffic conditions, etc.
As such, it’s important to track prices over time so that when one is lower than usual (or higher), place an order then instead of later when prices are likely higher again due to increased demand after work hours start ending around 5 pm eastern time zone which would also mean fewer drivers available.
Consider choosing pickup or shared deliveries.
Opting for pickup can save you the cost of delivery fees, and shared deliveries with other customers nearby can also help reduce costs.
Compare prices with other food delivery services.
Identifying potential savings with competitors and weighing the pros and cons of each service can help you make an informed decision on which platform to use.
Use a promo code.
If you’ve never used one before, look for the “Promo” button on the checkout page and enter any code that applies to your order. You could get $5 off your first order or even free delivery!
You can find these promo codes through various sources such as email promotions, online forums, or social media platforms. To use a promo code, look for the “Promo” button on the checkout page and enter the valid code that applies to your order.
Take advantage of Doordash DashPass.
The monthly fee varies depending on the location and promotional offers, so check the current pricing in your area before subscribing.
Conclusion
So, why is Doordash so expensive?
The answer is multifaceted: it’s a premium service that offers an exceptional experience and top-notch customer service, but it also has higher operational costs and relies on restaurant markups.
As more people start using DoorDash, demand for deliveries will continue to increase.
This means that prices will also rise as more people want their food delivered quickly and efficiently by someone else.
However, by using promo codes, tracking prices, and comparing with other services, you can still save money and enjoy the convenience of Doordash.
