The on-demand food delivery industry in Australia and New Zealand has experienced rapid growth in recent years. According to Roy Morgan’s findings, more than a quarter of Australians used delivery apps in 2020. The pandemic and government restrictions related to social distancing might have further multiplied the demand for on-demand delivery.
This sector has enjoyed rapid growth in Australia, according to IbisWorld, the online food ordering and delivery platforms industry has grown 23.5% per year on average between 2017 and 2022. It is expected to increase 9.7% in 2022, the market size, measured by revenue was $930.5m in the same year.
There are several food delivery services operating in both countries and DoorDash is a popular one among them. The company entered this industry in Australia at the end of 2019 while in New Zealand is planned to start operating in early 2022. In Australia, DoorDash has experienced significant growth in the number of users, delivery partners as well as merchant partners.
During the pandemic, restaurants as well as other business types have adapted by cutting down daily operation hours, closing on some days they’d usually be open, and limiting dine-in seating capacity. This condition will certainly have a major impact on business sales, even until 2022 it is estimated that the sales are still unable to return to pre-pandemic levels.
To be able to survive in conditions like this, some changes are needed to your business model to secure sales. One of them is by integrating delivery services such as DoorDash to drive incremental delivery and takeaway sales, reach more customers as well as increase your business visibility.
What is DoorDash for Merchants?
DoorDash for Merchants is one of the company’s efforts to connect business owners who want to use the DoorDash platform to facilitate delivery and pickup orders. Not just for restaurants, the company also helps other types of businesses like grocery stores, convenience stores, flower shops, pet stores and retail.
As a technology company, DoorDash helps these businesses grow their takeaway sales, reach new consumers, and strengthen brand awareness online. This is done by listing your business name on the DoorDash platform (apps and website) which has more than 20 million users worldwide and allows its customers to order from your store for delivery and pickup.
This platform is trusted by 550,000+ businesses worldwide including Australia and New Zealand. There are several Australian local business brands that have been supported by this platform such as Hungry Jack’s, Red Rooster, Gusman Y Gomez, Grill’d, Coles, IGA and PETstock. In addition, the company is also trusted by some of the major multinational companies such as McDonald’s, KFC, Nando’s and Pizza Hut.
How do merchants benefit from DoorDash?
Getting into the beginning of 2022, most businesses continue to face challenging conditions that hit on sales. In addition to this situation, business owners are facing a host of other obstacles, including rising business costs and a shallow labour pool.
In today’s uncertain global situation, collaborating with third parties such as DoorDash who is able to connect your business to potential customers can be a solution, especially if they can also help deliveries from your store.
Following are some of the benefits of partnering with a third-party provider like DoorDash:
- Reach more customers
Once approved to become a DoorDash merchant, your restaurant or shop will be visible to local customers searching for products near them. The customer can find you by typing your business name or the name of the product you are selling.
DoorDash said that they have reached 80% of the Australian population. They also have a growing presence in new areas such as New Zealand. With such a wide range, it should be adding more sales to your operations not replacing your sales.
- Offer delivery that customers expect
Research from Roy Morgan in 2020 shows nearly 4 million Australians aged above 14 years old use meal delivery services, up from 1.98 million in 2018 research. It could mean that the convenience of using apps for everyday services like the on-demand delivery platforms to order meals is finding favour with an increasing number of Aussie.
Adding a delivery service should have an impact on sales if done the right way. Like joining with a reliable third-party provider like DoorDash, a technology company that already has thousands of delivery drivers across the country ready to deliver your products directly to your customer’s doorsteps.
Joining a delivery platform is one way to increase sales along with the minimum amount of effort required to get started. No more worrying about recruiting more delivery staff or any logistics problems. DoorDash drivers (also called Dasher) are equipped with the necessary supply like a hot bag and of course also a vehicle.
Working with a delivery platform is like adding a couple of staff to your team. Because apart from fulfilling the delivery, the company also handles several other things like customer support. The platform will take care of all of the ordering and delivering infrastructure so you can continue doing what you do best.
How to become a DoorDash Merchant (Restaurant) in Australia and NZ?
There are no additional requirements to add a business to DoorDash in this region. If your restaurant or store has previously been registered with other platforms such as Uber Eats or Menulog then you will have no trouble registering and getting approved as a merchant.
The following is a straightforward step by step on how to sign up as a DoorDash merchant. In this section, we only cover the registration process for a restaurant as a business type.
- Go to the Official DoorDash Merchant (AU/NZ) Sign Up Page
The initial step to register your business can be done through their official website below which is tailored for Australia and NZ businesses. The registration process can be done through a web browser (Safari or Chrome) on your smartphone or computer.
- Fill out your Business Information
After arriving at the website page, you will see an initial form that you should fill in with your business details. Some of the initial information required includes your business name and address, your personal email and phone number, and your business type.
DoorDash supports several types of businesses that are common in our countries such as restaurants, grocery, convenience, flower shops, pet stores, or retail stores which you can choose from the drop-down menu.
- Complete Business Owner Information
In the next step, you will be asked for information regarding your personal details such as your name, email address, phone number and set up your password.
Make sure to enter the correct details, as there is no verification of this information at this stage. This is to ensure you will not lose access to the merchant portal because you might be asked to verify your mobile number or email in the future.
- Choose order protocol?
As a merchant, you can choose how you will receive orders from DoorDash. The first is integrating with your current POS (Point-of-sale) system, using the provided tablet device (for a fee) or only a notification via email and phone call.
If you are baffled about choosing one of them and now already have a tablet device, it is recommended to use your own device to install the DoorDash Order Manager app. Because with this app you can keep track of all your orders directly to maximize efficiency.
- Promote your menu and set up your store hours
Let customers see what you offer by uploading a website link (an URL of your business website page containing a menu list). In addition, you can also upload the menu that you published in the form of PDFs or images.
To speed up the activation process of your restaurant, make sure the menu has prices clearly listed with each item. You can also add modifiers with the associated item, for example, salad with chicken or beef.
After that, you can also set your store business hours. If your business is a restaurant, you can also set when your menu is available.
- Merchant application approval
The next step is to wait for DoorDash to approve your application. At this stage maybe they will contact you via email or phone call to fix some details about your business or simply to verify you as a business.
You will receive a notification to begin merchant self-activation via text message once your merchant application is approved. This is the easiest and fastest way to get onboarded and start receiving orders from DoorDash.
An activation notice will also be sent via email, it also contains information about your login credentials to the Merchant Portal and an outline of the on-boarding process. This email also includes a scheduler link to set up a call with Activation Agent which will help you when you struggling to complete the self-activation process and need assistance.
- Login to Merchant Portal and Order Manager
This is the last step before your restaurant or store is ready to accept orders from DoorDash. Merchant Portal is an online tool intended for business owners for managing deliveries, payments, bank account information, operating hours and menus.
Login with an email and password to get into the Merchant Portal using the credentials you specified before. These credentials are also usually informed within your account activation email.
There is another online tool that is very useful for merchants, DoorDash Order Manager. These tools really help you as a business owner or your staff to accept orders, adjust and manage the orders before sending them to the kitchen, determine when the orders will be ready as well as keep the orders on track from pickup to delivery.
You can choose to rent a tablet device from DoorDash with the Order Manager app pre-installed and you can start using it right away. If you have your own Android tablet you can also download and install it yourself, but you need to reach out to support and ask for a username and password. However, Apple tablet device such as iPad isn’t supported by this app you won’t be able to find it on the Apple App Store.
How much does DoorDash charge restaurants
Just like other platforms DoorDash also charges commission fees for every order received through their platform. They use the fees to cover the expenses including competitive pay for delivery drivers, 24/7 support, credit card processing and marketing campaigns to drive more customers to your business.
Here is the latest DoorDash merchant fees or commission in Australia and NZ:
|Country||Delivery Fee||Pickup Fee||Self-Delivery|
One of the reasons why many merchants are still hesitant to join a third-party delivery provider is how much they charge restaurants (or other business types). In addition, some providers also impose a one-time merchant activation fee that cost them hundreds of dollars which of course will make people hesitate to get started on.
However, once a merchant is approved, DoorDash will charge businesses 0% commission fees for the first 30 days of deliveries and takeaway orders, this applies across Australia and New Zealand. You also have the option to use their tablet device to manage orders, you can also request it for $0 for the first 30 days then $6 per week.
Uber Eats vs DoorDash Commission Fees Comparison
The two companies have almost the same pricing, but still, there are some differences between them that might be a consideration for merchants. Here are comparison table between the two provider in Australia:
If you are already registered as an Uber Eats merchant you will have no trouble integrating your business into DoorDash. It’s commission-free for 30 days which is worth trying, you’ve got nothing to lose.
As we know Uber Eats is the market leader in the meals delivery industry across Australia and NZ. One of the reasons is because they are launched in both countries first. Whereas DoorDash is a new player in these two regions coming a few years after.
Despite being a newcomer we believe DoorDash will be Uber’s toughest rival here. Considering these two companies also compete in their home country the United States. DoorDash has a 58% share there, while Uber only gets a 24% share based on a report from Bloomberg Second Measure in 2022.