DoorDash to Raise Interim Minimum for US Subscribers

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Food and grocery delivery company DoorDash is raising the bar on orders through its DashPass subscription service.

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According to an email update starting August 12, “DashPass minimum subtotals may increase and vary by store, city, and time of day….” DashPass subscribers pay $9.99 per month for free shipping and reduced service fees. Subscribers currently need to order at least $12 worth of food or $35 worth of groceries to receive discounts.

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According to a DoorDash spokesperson, DoorDash does not say which markets will be affected or what the new minimum requirements will be, but the changes will only affect US markets and only orders for FMCG, pharmacies, retail stores and liquor stores.

“We’re seeing things like alcohol and groceries already hitting a higher minimum subtotal anyway, so we’re really comparing what we see to make sure we’re thinking about all aspects of the business,” the spokesperson said. . tech crunch.

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In its email message, DoorDash hinted that the labor force and potentially higher wages are the reason behind the rise in sub-floors.

“Delivery of essentials takes a few more steps than you think: a real human hand selects items to make sure you get exactly what you asked for,” wrote DoorDash.

Several states in the country raised the minimum wage in early 2022. At the same time, the US is experiencing a labor shortage that preceded the pandemic but was exacerbated by it. Recent U.S. Chamber of Commerce Poll these workers remain concerned about COVID-19 at work, feel that wages are too low, and are more focused on acquiring new skills and education before re-entering the labor market.

“This is not just an order at a restaurant where Dashers come in and pick up the order,” a spokesperson said. “They go to the grocery store for groceries. They go shopping, picking and packing orders. So we want them to be fairly compensated for this.”

It is not yet clear how DoorDash will make decisions to increase the minimum subtotals in the markets it is testing. This may rely on dynamic pricing algorithms, but the company declined to confirm this to TechCrunch.

DashPass has become an increasingly popular service over the past couple of years as customers have grown accustomed to relying on delivery during the pandemic. DoorDash’s total order volume rose 23% year-on-year to 404 million, with order growth driven by an increase in monthly active users and an increase in average order frequency, due in part to increased DashPass penetration, according to the company. first quarter profit.

Earlier this week, DoorDash also shut down Chowboticsa salad robot startup he acquired just last year.


Credit: techcrunch.com /

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