DoorDash said Tuesday that it will temporarily waive commission fees for independent restaurants.
The third-party delivery company said that through the end of April, independent restaurants in the U.S., Canada, Puerto Rico, and Australia can sign up for DoorDash and Caviar and pay no commission for the next 30 days. DoorDash clarified that fees won’t be deferred and businesses won’t be asked to pay anything back.
Rival Grubhub previously announced that it would temporarily waive up to $100 million in commission fees for independent restaurants, although the company later clarified that payments were only being deferred and must be paid at a later time.
Existing DoorDash and Caviar partners won’t pay any commission fees on pickup orders, and eligible restaurants will receive additional commission reductions.
The company is also adding more than 100,000 independent restaurants to its DashPass—a subscription program that waives delivery fees for customers—for free. Commissions will be reduced for businesses already on DashPass and Caviar restaurants will have the opportunity to participate in a $0 delivery fee program.
Each of those measures is combined with $20 million being earmarked for marketing efforts aimed at helping restaurants raise revenue.
DoorDash believes the package will generate up to $200 million in additional sales for restaurants this year.
Additionally, the company is creating a program to help restaurant workers sign up as drivers to help meet their financial needs until their regular job returns to normal.
“Around the globe, the restaurants that form the backbone of our communities are being asked to change how they operate,” said CEO Tony Xu in a statement. “From limiting their occupancy to closing their doors to dining guests, these businesses are facing the prospect of lost sales, making it harder for them to meet their daily expenses. Yet these restaurants continue to serve their customers by remaining open for delivery and pick-up, and now, more than ever, they need all of our support.”
DoorDash also created a program to support workers who are diagnosed with coronavirus and need to quarantine for 14 days. To qualify, a driver must have worked for at least 60 days and completed at least 30 deliveries in the last 30 days. The company is also donating 1 million sets of hand sanitizers and gloves to drivers.
Uber Eats said it would temporarily stop delivery fees for more than 100,000 independent restaurants across the U.S. and Canada and create a daily payout option for restaurants as opposed to a weekly billing cycle. In addition, Uber Eats is pledging 300,000 free meals to first responders and healthcare works in the U.S. and Canada.
Postmates said last week that it would waive commission fees for new businesses in San Francisco that participate in a pilot program.