DoorDash Inc. is raising its fees for McDonald’s restaurants that prepare their orders too slowly, The Wall Street Journal (WSJ) reported on Monday (February 14th), a move aimed at improving the efficiency of the delivery platform and reducing its losses.
The company had agreed to a lower base commission rate for McDonald’s in the United States, according to the report. DoorDash charges restaurants a commission on every order and charges consumers a service fee.
According to the WSJ, fee increases for McDonald’s will begin in 2023 on orders where drivers have to wait.
McDonald’s will also have to cover DoorDash’s refund costs when the restaurant makes mistakes on its orders, including when the kitchen packages the wrong item or forgets “fries with that”, after a number of customer complaints.
Some McDonald’s franchisees fear being penalized for their performance, especially as they also face staffing shortages.
McDonald’s announced deals with DoorDash and Uber Eats in November. DoorDash uses a tiered pricing system for McDonald’s, similar to the one it uses for its DashPass subscription service.
McDonald’s will pay 11.6% commission on non-subscriber orders and 14.1% commission on DashPass orders, both down from 15.5%.
Rates spike when the driver has to wait more than four minutes, up to 17.6% for non-DashPass subscribers when the wait exceeds seven minutes, according to the report. If a driver has to wait more than seven minutes for a DashPass order, the restaurant will be charged a 20.1% commission.
Related: McDonald’s new special sauce? McMetaverse, with 10 trademarks already registered
Meanwhile, McDonald’s, which has more than 39,000 restaurants in more than 100 countries and territories, is planning to join the metaverse.
The Golden Arches has filed at least 10 trademarks for its name, logo, McCafe and rights to various goodies, according to a tweet from Josh Gerben, trademark attorney and founder of Gerben Intellectual Property.
The virtual restaurant will feature real and virtual food, downloadable media files, non-fungible tokens (NFTs), merchandise, concerts and more.