FTC proposes a crackdown on third-party delivery charges

The Federal Trade Commission is considering a crackdown on third-party delivery charges. The consumer watchdog on Thursday proposed a new rule that would address how apps like DoorDash, Uber Eats and Grubhub handle pricing and delivery fees for consumers. The agency is asking for public comment on the proposal through May 18.  The proposal highlights …

Toast Shuts Down its 99-Cent Fee

Toast announced Wednesday that it will remove its 99-cent fee for orders over $10 after receiving a wave of negative feedback from the restaurant community.  CEO Chris Comparato said the decision came after “extensive discussions” with clients. The fee will be gone by the end of the week.  “While we had the best of intentions—to …

Zomato Denies Moving To Zero Commission Model For Restaurants

Food delivery major Zomato’s parent Eternal is said to be weighing alterations to its commission models and has begun discussions with restaurants across the country.  As per an NDTV Profit report, the foodtech major is said to be gathering feedback from restaurant partners, but no definitive plan has been finalised on any changes to the …

Batched delivery orders take longer, hurt food quality

Third-party delivery providers’ practice of bundling multiple orders in one trip slows delivery times and hurts customer satisfaction. That’s according to The Path to Third-Party Excellence, a soon-to-be-published report from researcher Intouch Insight, which used secret shoppers to place 600 delivery orders from restaurants and convenience stores across the U.S. The orders were split evenly among …

Delivery fees have Seattle diners, drivers and restaurants reeling

Mia Shagen has delivered for DoorDash via electric bicycle and scooter since 2020. She moves between cities throughout the year but has always called Seattle her home. She isn’t sure she can stay, though.  Shagen says she’s never made so little delivering for DoorDash. Take Wednesday, Aug. 14: Shagen worked five and a half hours, …

Could DoorDash’s New Discount Programs Pose a Revenue Challenge for Restaurants?

DoorDash believes it has the answer to the summer slowdown in restaurant traffic. The third-party platform recently began promoting two initiatives that offer deep discounts to consumers: Lunch Specials and Happy Hour. The company said these programs aim to drive off-peak demand for restaurants while providing affordable options for customers. But there’s a catch. To …

DoorDash and Uber fed up with Seattle council standstill on food delivery driver pay

DoorDash and Uber are chomping at the bit for regulatory action in Seattle. The tech giants have been lobbying lawmakers for six months to address a controversial minimum pay law for food delivery drivers that went into effect in January. Seattle City Council President Sara Nelson in April introduced a bill that would lower the minimum wage …

DoorDash shifts pay scheme, cuts flexibility in New York City

Dive Brief: Dive Insight: DoorDash said its steeper fees in New York City led to a $3.5 million drop in sales for local DoorDash merchants and 200,000 fewer orders over the last few weeks. The company didn’t share a specific time frame for this decline, and didn’t respond to a request to confirm how many merchants …

DoorDash says it’s getting more affordable

While restaurant menu prices continue to climb, DoorDash says its prices are going down. The third-party delivery company said it has reduced fees by 12% over the past two years for customers who aren’t part of its DashPass subscription program.  That includes the service fees, delivery fees, small order and legislative fees that it tacks …