On-demand delivery service DoorDash is bringing a subscription service for restaurant deliveries to California, Texas and the Midwest.
Called DashPass customers, for $9.99 a month, will receive free delivery from participating restaurants in their area on orders of $15 or more. Without DashPass, delivery fees range from $2.99 to $5.99 depending on the geographical market and the restaurant partner.
Christopher Payne, chief operating officer at DoorDash, said DoorDash created the service in part to encourage customers to order more frequently. After a DashPass pilot in California and Texas, Payne said the average participant increased order frequency by 50 percent and saved $20 a month.
DoorDash chose these markets because they are older and “delivery is more penetrated,” Payne said.
“We want to wait until the market reaches a certain level of awareness,” he added. “DashPass will accentuate that usage … when we launch DashPass, [we can] help become … more of a daily habit and drive the business. It wouldn’t necessarily make sense at the beginning of a market where consumer awareness is low, but as they become more accustomed and use it more, DashPass is perfect.”
Payne said participating restaurants include chains like Cheesecake Factory, California Pizza Kitchen and Jack in the Box, as well as local restaurants like Chicago’s Big Star.
DoorDash says DashPass membership pays for itself with three orders per month and can be canceled at any time.
It’s also arguably a way for DoorDash to distinguish itself—at least for now—from other delivery options, like Seamless, GrubHub, Uber Eats, Postmates, Delivery.com and Caviar, to name a few.
DoorDash will also offer a free pickup option, but it did not disclose how many merchants are participating.
Payne said pickup appeals to consumers who, say, want to pick up coffee on their way to work, which, in turn, makes DoorDash more relevant to more customers and drives more customers into restaurants.