Third-party delivery apps promise volume, but commissions eat your margins. A $20 order through DoorDash might net you $12-14 after fees. Understanding the true cost of each platform helps you optimize your delivery strategy.

This guide breaks down commission structures across major platforms and compares them to direct ordering alternatives.

Third-Party Platform Fees

DoorDash

Commission tiers:

• Basic: 15% (pickup only, limited visibility)
• Plus: 25% (delivery, DashPass priority)
• Premier: 30% (highest visibility, promotions)

Additional fees:

• Marketing fees: 10-20% for sponsored listings
• Error charges: $6-10 per cancelled order
• Tablet fees: $6/week if using DoorDash tablet

Real example — $30 order on Plus tier:

• Commission (25%): $7.50
• Effective net: $22.50 (75% of order value)

Uber Eats

Commission tiers:

• Lite: 15% (pickup only)
• Plus: 25% (standard delivery)
• Premium: 30% (priority placement)

Additional fees:

• Sponsored listings: Variable (bid-based)
• Order errors: Deducted from payouts
• Marketing opt-ins: 5-15% additional

Real example — $30 order on Plus tier:

• Commission (25%): $7.50
• Effective net: $22.50 (75% of order value)

Grubhub

Commission:

• Standard: 20-25%
• Grubhub+: Up to 30%

Additional fees:

• Marketing/promotions: 10-20%
• Phone order fee: $1.50/order
• Processing: 3.05% + $0.30

Real example — $30 order at 25%:

• Commission: $7.50
• Processing (3.05% + $0.30): $1.22
• Effective net: $21.28 (71% of order value)

The Hidden Commission Math

Advertised rates don't tell the full story. Here's what actually happens:

Scenario: $30 food order, customer pays $38 total

Customer sees:

• Food: $30.00
• Delivery fee: $3.99
• Service fee: $2.99
• Tax: $1.02
• Total: $38.00

Restaurant receives:

• Food subtotal: $30.00
• Less commission (25%): -$7.50
• Net payout: $22.50

Platform keeps:

• Commission: $7.50
• Delivery fee (partially): ~$2.00
• Service fee: $2.99
• Total: ~$12.49

Your food cost is 30%? Your actual margin:

• Food cost (30%): $9.00
• Labor (20%): $6.00
• Overhead (15%): $4.50
• Total cost: $19.50
• Net after commission: $22.50
• Profit: $3.00 (10% margin)

Compare to dine-in (no commission):

• Revenue: $30.00
• Costs: $19.50
• Profit: $10.50 (35% margin)

First-Party Ordering Costs

Direct ordering through your own website costs less but requires setup and marketing.

Square Online

Pricing:

• Commission: 0%
• Processing: 2.9% + $0.30
• Monthly fee: $0 (Free tier) to $79 (Plus)

$30 order cost:

• Processing: $1.17
• Effective net: $28.83 (96%)

Toast Online Ordering

Pricing:

• Commission: 0%
• Processing: 2.99% + $0.15
• Monthly fee: Included with Toast POS

$30 order cost:

• Processing: $1.05
• Effective net: $28.95 (96.5%)

ChowNow

Pricing:

• Commission: 0%
• Processing: 2.95% + $0.30
• Monthly fee: $99-199

$30 order cost:

• Processing: $1.19
• Effective net: $28.81 (96%)

Direct comparison

The difference per order: $6.33-6.45 more with direct ordering.

At 200 delivery orders/month:

• Third-party: $4,500 net
• Direct: $5,766 net
• Difference: $1,266/month or $15,192/year

The Volume Tradeoff

Third-party platforms provide customer acquisition. Direct ordering requires you to drive traffic yourself.

Third-party advantages:

• Built-in customer base
• No marketing required
• Easy to start (sign up and go)
• Handles delivery logistics (unless you self-deliver)

Direct ordering advantages:

• Higher margins (25-30% difference)
• Customer data ownership
• Brand control
• No pricing restrictions

The break-even question: How much volume would you lose going direct-only?

If third-party drives 100 orders/week at 25% commission:

• Net revenue: $2,250 (on $3,000 gross)

To match that with direct (96% net):

• Need only 78 orders/week ($2,344 net)

You can afford to lose 22% of volume and still come out ahead.

Hybrid Strategy

Most restaurants shouldn't choose one or the other—optimize both channels:

On third-party platforms:

• Use them for customer acquisition
• Price slightly higher (10-15%) to offset commissions
• Don't run promotions that further cut margins
• Opt out of expensive marketing programs

On direct ordering:

• Make it easy to find (website, Google Business Profile)
• Offer incentives for direct orders (free item, loyalty points)
• Include flyers in third-party orders promoting direct ordering
• Build an email/SMS list for marketing

The 30-day conversion strategy:

1. Customer orders via DoorDash (you acquire them)
2. Include flyer: "Order direct, get 10% off next order"
3. Customer visits your site, orders direct
4. You capture email, offer loyalty rewards
5. Customer becomes direct customer

Target: Convert 20% of third-party customers to direct within 90 days

Delivery: In-House vs. Platform

Third-party delivery has its own economics:

Platform delivery:

• No driver management
• Unlimited delivery radius
• Higher commissions (25-30% vs 15-20% pickup)
• Variable delivery times

In-house delivery:

• Lower per-order cost at scale
• Control over customer experience
• Limited radius
• Driver hiring/management overhead

When in-house makes sense:

• High delivery volume (50+ orders/day)
• Concentrated delivery area (3-mile radius)
• Premium brand where experience matters

Cost comparison for 100 orders/day:

Platform delivery (25% commission):

• $30 average × 25% × 100 = $750/day delivery cost

In-house delivery:

• 2 drivers × 8 hours × $15/hour = $240/day
• Vehicle costs: $50/day
• Total: $290/day

Savings: $460/day or $167,900/year

But this requires 50+ orders/day to support dedicated drivers. Below that volume, platform delivery is more practical.

Negotiating Better Rates

Third-party rates aren't fixed. Negotiate if you have leverage:

Leverage factors:

• High order volume (1,000+/month)
• Multi-location presence
• Strong ratings/reviews
• Exclusive partnership willingness

What to negotiate:

• Lower commission tier
• Reduced marketing fees
• Tablet fee waiver
• Error charge caps

Approach:

1. Document your metrics (volume, ratings, growth)
2. Get quotes from competing platforms
3. Request account manager meeting
4. Ask for 2-5% reduction with volume commitment
5. Review quarterly

Many restaurants successfully negotiate to 20% from 25% with consistent volume.

Action Plan

1. Calculate your true cost per platform

   • Include all fees, not just commission
   • Track order errors and charges

2. Set up direct ordering

   • Square Online (free) or your POS provider
   • Optimize Google Business Profile
   • Add ordering link everywhere

3. Implement conversion strategy

   • Flyers in every third-party order
   • Direct ordering incentives
   • Email/SMS capture

4. Review monthly

   • Track channel mix (third-party vs direct)
   • Monitor conversion rates
   • Adjust pricing and promotions

The goal isn't eliminating third-party platforms—it's optimizing the channel mix to maximize profitability. Every order you convert from 25% commission to 3% processing is pure margin recovered.