Grocery and grocery delivery company DoorDash is raising the bar for orders through its subscription service DashPass.
According to an email update beginning Aug. 12, “DashPass subtotal minima may increase and vary by store, city, and time of day…” DashPass subscribers pay $9.99 per month for free shipping and discounted service fees. Currently, subscribers must order at least $12 worth of groceries or $35 worth of groceries to receive the discounts.
DoorDash wouldn’t say which markets would be affected, nor what the new minimum amounts would be, but the changes will only affect U.S. markets and only orders from convenience, drug, retail, and liquor stores, according to a DoorDash spokesperson.
“We’re seeing things like alcohol and groceries getting a bigger minimum subtotal anyway, so we’re really matching what we’re seeing to make sure we’re thinking of all sides of the business,” spokesperson TechCrunch said.
In its email announcement, DoorDash hinted that work and possibly higher wages are the reason the subtotal minima were raised.
“Delivering the bare essentials you need takes a few more steps than you might think: a real human hand selects items to ensure you get exactly what you asked for,” wrote DoorDash.
Several states in the country raised their minimum wages in early 2022. At the same time, the US is experiencing a labor shortage that existed before the pandemic but has been exacerbated by it. A recent survey by the US Chamber of Commerce said workers are still concerned about COVID-19 in the workplace, feel the pay is too low and are more focused on acquiring new skills and education before re-entering the workforce.
“It’s not just a restaurant order where the dashers go and pick up the order,” the rep said. “They go to the store to order groceries. You buy and pick and pack the orders. So we want to make sure they are properly compensated for it.”
It’s not clear how DoorDash will make decisions about elevated subtotal minimums in the markets it’s testing in. It may rely on dynamic pricing algorithms, but the company refused to confirm this with TechCrunch.
DashPass has become an increasingly popular service in recent years as customers have become accustomed to relying on delivery during the pandemic. Total DoorDash orders grew 23% year over year to 404 million, with the order growth driven by an increase in monthly active users and higher average order frequency, which the company says is partly due to increasing DashPass penetration First Quarter Results.
earlier this week, DoorDash also shut down Chowboticsthe lettuce-making robotics startup that was acquired just last year.
DoorDash to hike subtotal minimums for US subscribers – TechCrunch Source link DoorDash to hike subtotal minimums for US subscribers – TechCrunch