DoorDash said it would boost restaurants that are maintaining their prices to match their in-store food costs.
A Doordash sticker is seen on a window at Mallenche Mexican Grill in the Flatbush neighborhood of Brooklyn on December 04, 2020, in New York City. Food delivery startup DoorDash Inc is expected to raise its U.S. initial public offering up to $3.14 billion.
This is just one of the efforts of the food delivery company to ensure that its customers are not seeing excessive prices from its partner restaurants.
Recently, DoorDash informed its operators that excessive markups would affect their placements on the platform.
On the other hand, restaurants that maintain their prices across the DoorDash app will be prioritized by the company, as reported by Restaurant Business.
DoorDash Making Efforts to Prevent Excessive Pricing by Restaurants!
According to Business Insider's latest report, DoorDash said that restaurants are better off reducing their prices and getting their placements lowered on the platform.
A Doordash delivery person rides their bike on Church Avenue in the Flatbush neighborhood of Brooklyn on December 04, 2020, in New York City. Food delivery startup DoorDash Inc is expected to raise its U.S. initial public offering up to $3.14 billion.
Also Read: DoorDash Now Allows Delivery Workers to Block Future Deliveries From Rude Customers
"Our mission is to empower local economies while balancing and protecting the needs of each of the audiences we serve - consumers, merchants, and Dashers," said a DoorDash spokesperson.
The official added that excessive pricing could decrease sales by 37% and lower re-order rates by up to 75%.
The food delivery firm further stated that these negative effects could lead to fewer earning opportunities for Dashers and more negative reviews for restaurants.
"We encourage restaurants to set prices on DoorDash that more closely reflect in-store menu prices," added the DoorDash spokesperson.
Excessive Pricing's Effects on DoorDash
DoorDash said that the platform's customer dissatisfaction worsens when restaurants charge more for delivery orders.
The food delivery company provided a complaint it received.
In its document, DoorDash said that one of its consumers complained that a hamburger that costs $19.99 in-store is $24.99 through the app.
The customer asked DoorDash why it allows that restaurant to gouge the platform.
Because of this, DoorDash is now encouraging restaurants to maintain their prices as much as possible; or else they'll be less prioritized on the app.
If you want to learn more details about the excessive pricing issue happening on DoorDash, you can click here.
Here are other stories we recently wrote about DoorDash:
Over 1,200 DoorDash employees were recently terminated as part of the company's cost-cutting measures.
Previously, DoorDash's delivery drones in Australia were introduced.
For more news updates about DoorDash and other food delivery apps, always keep your tabs open here at TechTimes.
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