DoorDash’s delivery services are incredibly convenient, especially if you don’t have the time or energy to go out and grab lunch or dinner. Naturally, the prices for delivery services are a little more expensive than if you were to go to the restaurant yourself.
But lately, customers have noticed DoorDash’s prices are rising. So, you might be asking: why is DoorDash so expensive? I was curious about the same thing, and found 11 reasons why!
Why Is DoorDash So Expensive In 2023?
1. Restaurants Increased the Cost of Meals
One reason DoorDash is so expensive is that the platform’s restaurants have raised their menu prices.
As a result of the world events in 2020/2021, restaurant operating expenses increased slightly.
So, to continue making a profit, the restaurants were forced to up the cost of their menu items.
Further, increased menu items affect DoorDash’s service fees, which are then transferred to you as a customer.
2. DoorDash Is Providing a Service
Although food deliveries have grown increasingly popular, it’s not a necessity; it’s an added perk that some restaurants offer.
Put differently, DoorDash provides a service that allows customers to stay at home while food is brought directly to them.
Naturally, DoorDash has to charge for this service, just as a doctor charges you for an appointment.
Therefore, DoorDash prices are rising, because the demand for food deliveries is constantly growing.
3. DoorDash Delivery Fees
If you’ve ordered from DoorDash before, you might have noticed there are delivery fees added to your order total.
DoorDash delivery fees range from $1.99 to $4.99, and are always clearly displayed in the app.
Additionally, delivery fees can vary, due to increased order volume or limited DoorDashers.
Moreover, DoorDash allows customers to avoid delivery fees by paying a monthly subscription to DashPass.
With DashPass, customers enjoy zero delivery fees and other exclusive perks for $9.99 a month.
4. DoorDash Service Fees
In addition to delivery fees, there are also service fees with DoorDash orders. That said, service fees can vary depending on where you live and the demand in that area.
So, if you live far away from the restaurant, DoorDash’s service fees are higher, because the delivery driver has to commute farther.
Additionally, the DoorDash service fees add around 10% to the subtotal of your order. Again, DoorDash clearly displays the service fees, so you’ll never be surprised by added fees.
5. Order Doesn’t Meet the Minimum Order Requirement
DoorDash charges a small order fee when the amount of food purchased doesn’t meet the minimum threshold.
That said, the minimum threshold varies based on location, but it’s usually around $10. Moreover, the added charge for failing to meet the minimum order requirement is about $2.
6. Added Taxes
With every DoorDash order, taxes are added to the order total, which increases the total amount you have to pay. Note that the amount DoorDash taxes depends on the state or local tax rate.
So, if taxes increase where you live, that will be reflected in the total amount you have to pay. Additionally, DoorDash has no control over the tax rate added to your order.
7. DoorDash Delivery Driver Tips
DoorDasher tips are another reason the food delivery service is so expensive. Unlike what most people assume, the delivery or service fee doesn’t go to the DoorDasher.
Instead, delivery drivers receive a base pay (which is between $2-$10) and whatever tip a customer adds.
Therefore, it’s essential to tip your DoorDasher, because they keep 100% of their tips.
Additionally, when you leave a larger tip, your DoorDash order is more likely to be picked up by a delivery driver and brought to you on time or even early.
8. DoorDash Started Paying Delivery Drivers More
Recently, DoorDash altered its delivery driver payment policy so that the DoorDashers can earn more.
Therefore, increased wages for DoorDashers result in higher delivery costs for customers. As previously mentioned, DoorDashers receive a base pay for every order.
That said, the base pay depends on the estimated delivery time, distance, and the order’s desirability.
9. DoorDash Offers Driver Promotions
In certain cases, DoorDash offers its delivery drivers opportunities to earn more money. As a result, a customer’s price for using DoorDash is a little higher.
For example, DoorDash pays more during “peak hours.” When it’s busy, DoorDash allows delivery drivers to earn more per each order they accept.
Typically, peak hours are during lunch (11 AM – 2 PM) and dinner (5 PM – 8 PM), but they can vary based on location and the time of year.
10. Food Prices Are Rising
Recently, the cost of food has been increasing, which affects restaurant menu items. Naturally, restaurants have to increase the cost of menu items when food prices rise.
So, increased food prices are another reason DoorDash is so expensive. Moreover, the foods that have seen the highest increase in price include meat, poultry, fish, and eggs.
Again, this is something DoorDash has no control over, but the change does affect the cost of using the food delivery service.
11. DoorDashers Face a Lot of Competition
Delivering food for DoorDash is a common side hustle. However, the competition amongst DoorDashers is another reason the overall price for orders is rather expensive.
With that, DoorDashers can pick and choose which orders they want to accept.
So, when an order has a large tip tacked onto it, the food is more likely to be picked up and delivered by a driver.
Again, the added tips are important, but are also a primary factor that makes DoorDash so expensive.
When customers don’t tip well, the food sits at the restaurant for a long time, and has a higher chance of being cold when it’s delivered.
Ordering from DoorDash is simple, but doing so all the time can take a toll on your wallet. Some of the reasons DoorDash is so expensive is due to the added fees and the cost of food increasing.
Also, DoorDash recently started offering a higher base pay for its delivery drivers, which means higher prices for customers.