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DoorDash to be More Transparent About Service Costs

DoorDash to be More Transparent About Service Costs


Change fueled by customer and restaurant complaints on artificially inflating food prices

New update will include a ‘service fee’ in order to reflect accurate menu prices.

Ordering in can be a much-needed indulgence, but how much extra are you actually paying for the convenience? DoorDash has recently been hit with complaints from both customers and restaurants for upcharging food to keep service fees low, and is now changing its ways.

For example, a Brew Pub Philly at Applebee’s that normally costs $13.49 is listed for $16.50 on DoorDash’s website, and a $10.99 BLT from Italian eatery A.G. Ferrari costs $14.95, reports Bloomberg. In addition to the markup, DoorDash charges a $5.99 delivery fee, tax, and tip. The extra charge comes from restaurants that don’t already pay a commission to DoorDash for each delivery, according to Tech Crunch.

DoorDash chief executive officer Tony Xu says, “We will soon announce a change to be more transparent. We will list our service fee as a separate cost from menu prices in a few weeks.”


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


DoorDash Says It'll Stop Misleading Customers About Menu Prices

A burrata panini at La Panineria sandwich shop in Greenwich Village costs $21 on DoorDash, but only $15 in the store—and the owner isn't exactly on board with that. Indeed, restaurants nationwide are angry the startup is marking up prices without their consent, and the app is finally going to do something about it. Bloomberg reports that in the newest iteration of the app, DoorDash will be more transparent about which fees are going toward food and which are going toward the app itself.

DoorDash launched in New York in 2015, but it's been operating in other cities since 2013. Much like Instacart and Postmates, the app allows customers to have food delivered regardless of whether the restaurant in question actually offers delivery: it's delivered not by employees of the restaurant, but by "Dashers" working for the startup. Until now, DoorDash hasn't noted when a price is higher on its app than it is in the restaurant itself, which some restaurant owners say is misleading their potential customers.

"If [customers] see the higher price, they will get upset," La Panineria owner Mario Pesce told Eater in November. "It's very bad."

Restaurants like La Panineria say that they've rejected DoorDash's offer to list their food on the app, but later found out that Dashers are making deliveries on their behalf anyway. It's behavior like this that's led to legal action by restaurant owners nationwide. In-N-Out Burger sued DoorDash for trademark infringement in the fall, and Boston-based Legal Sea Foods sued earlier this month over the app's price markups. It may have been the latter that finally prompted DoorDash to clear things up.

"We will soon announce a change to be more transparent," CEO Tony Xu told Bloomberg. "We will list our service fee as a separate cost from menu prices."

Currently, the only explanation of DoorDash's pricing policy is buried in the "Help" section of its website, which says that "we may adjust menu prices to help keep our service fee as low as possible and ensure effective operations." It seems that in the app's forthcoming update, that'll be much more clearly stated when customers check out, so that they can see just how much they're spending on top of the menu price.

As Eater reported, some restaurant owners were ambivalent or even enthusiastic about doing business with DoorDash, despite any surreptitious markups on the app's end. But others, like Tommy Ferrick of Delilah's Steaks in Greenpoint, want DoorDash's shady behavior shut down: "Someone paid 25 percent on top of [my price] and thought they were probably getting a premiere delivery service. They're getting sheisted."


Watch the video: 12 HOUR DOORDASH SHIFT! wUber Eats and Grubhub