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 is overhauling the way it charges customer fees, the company said on Thursday. It plans to roll out the new fee structure across most of the US over the coming months.
Under the new system, the service fee customers pay can vary more, depending on factors such as the size of an order and the distance to the store or restaurant. Orders that require trips of more than 10 miles may still incur a separate long-distance fee.
DoorDash's delivery fee, meanwhile, will remain a fixed charge that varies by merchant, the company said.
The changes "better reflect what it takes to complete your delivery," DoorDash wrote in a blog post describing the new fee structure.
The new fee structure is the latest change to the DoorDash app. Last month, the delivery service unveiled an AI tool that lets users order groceries by uploading a shopping list or a recipe.
Gig workers for apps like DoorDash and Uber Eats often decide which orders to take based on factors such as how far they need to travel to deliver them. That calculation has become more important as gas prices have soared this year after the US and Israel began a war with Iran.
About 70% of recent DoorDash orders would have carried lower fees under the new system, the company said. A DoorDash spokesperson did not immediately respond to a request for clarification on the fee structure.
DoorDash is also adding app features that it said make its fees more transparent to customers. A new "Farther Away" label will appear on orders from restaurants that could incur higher service fees, for example.
The rollout will initially exclude California, Chicago, Colorado, Washington, DC, Massachusetts, Minnesota, New York City, Puerto Rico, and Seattle, DoorDash said.
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Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
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