How much extra does DoorDash cost?

Decoding the Dash: How Much Extra Does DoorDash (and Others) Really Cost?

Ordering in is convenient, but the convenience comes at a cost. While the allure of having your favorite meal delivered to your doorstep is strong, understanding the hidden fees can be crucial to budgeting. Let’s break down exactly how much extra you’re paying when using DoorDash, and compare it to some of its major competitors.

DoorDash, a popular food delivery service, isn’t just charging you the restaurant’s price. Their fees are a combination of several components, leading to a final bill that can significantly exceed the menu price. The most prominent charges are the delivery fee and, if you opt for pickup, a separate pickup fee.

DoorDash’s Fee Breakdown:

• Delivery Fee: This typically ranges from 15% to 30% of your order total. The exact percentage varies based on several factors, including distance to the restaurant, demand (higher demand often means higher fees), and the specific restaurant’s arrangement with DoorDash. This is the biggest chunk of the extra cost.

• Pickup Fee: If you choose to pick up your order yourself, DoorDash still charges a fee, typically around 6% of the order total. This fee covers the processing and management of your order, even without delivery.

This means a $20 meal from a restaurant could easily cost you $26 or even $30 with DoorDash, depending on the delivery fee and distance.

A Look at the Competition:

To put DoorDash’s fees into perspective, let’s examine some of its main competitors:

• Grubhub: Grubhub operates on a slightly different model. They charge a delivery fee (around 10%), but also tack on a significant “marketing fee,” which can range from 15% to 25% of the order total. This marketing fee, intended to cover Grubhub’s operational and advertising costs, can inflate the final bill just as much, if not more, than DoorDash’s delivery fee.

• Uber Eats: Similar to DoorDash, Uber Eats typically charges a delivery fee between 15% to 30% of the order total, and also a roughly 6% pickup fee. Their fee structure is quite comparable to DoorDash’s.

• Postmates: Postmates also employs a service fee ranging from 15% to 30%, making it comparable to DoorDash and Uber Eats. They add a potential direct deposit fee of up to $5, which adds an extra layer of cost.

The Bottom Line:

While the convenience of food delivery is undeniable, the added costs can quickly add up. Understanding the breakdown of fees for each service—DoorDash, Grubhub, Uber Eats, and Postmates—allows for informed decisions about when and how often to use these services. Comparing the total cost, including delivery and other fees, to the price of preparing a meal at home or dining out can help you make a financially responsible choice. Remember to check the final price before confirming your order to avoid any unexpected surprises.