DoorDash Launches Loyalty Program Option for Partner Restaurants, Boosts Customer Engagement

DoorDash has launched a loyalty program option for its commerce platform, allowing merchants to choose between a visit-based or spend-based rewards structure and customers to accrue points across various channels. The addition is expected to boost customer engagement for independent and small restaurant chains and increase orders on the platform. DoorDash also rolled out new plans for its Commerce Platform, including a Starter plan with a branded website and commission-free online ordering, a Boost plan with automated emails, and a Pro plan with customizable marketing tools and a cross-channel loyalty program.

DoorDash has recently introduced a loyalty program option within its commerce platform, aiming to enhance customer engagement and boost orders for independent and small restaurant chains. The loyalty program allows merchants to choose between visit-based or spend-based rewards structures, with customers able to accrue points across various channels, including a restaurant's website, app, DoorDash marketplace, or in-store [3].

The addition of the loyalty program is a strategic move to close a product gap between DoorDash and its smaller competitors, such as Uber Eats and Grubhub, which have offered similar features for years. One merchant, John Schall of El Jefe’s Taqueria, reported that within the first month of launching the DoorDash omni-channel loyalty program, 22,000 customers enrolled, with these customers exhibiting 1.3 times higher frequency in online ordering compared to non-loyalty customers [3].

In addition to the loyalty program, DoorDash has rolled out new plans for its Commerce Platform. The Starter plan, priced at $0 per store per month, offers a free branded website and commission-free online ordering, though a 2.9% + $0.30 payment processing fee applies. The Boost plan, at $54 per store per month, includes all Starter features plus automated emails. The Pro plan, priced at $249 per store per month, adds a branded mobile app, customizable marketing tools, and a cross-channel loyalty program [3].

These updates come as part of DoorDash's broader strategy to support restaurants in increasing direct sales and improving customer engagement across their own channels. The enhanced platform operates on the same infrastructure that facilitates daily transactions on the DoorDash Marketplace, enabling restaurants to develop their brand, enhance profitability, and provide customer experiences at scale [1].

DoorDash's commerce platform vice-president Casey North stated, "A customer orders on DoorDash. Days later, they visit the restaurant and earn loyalty points. The following week, they get an email about a weekend special and place a pickup order through the restaurant’s website. That’s a fully connected commerce experience. With the evolved DoorDash commerce platform, we’re giving restaurants the tools to own that journey - building loyalty, driving repeat sales and growing their most profitable channels" [1].

The company is also expanding its operations through strategic acquisitions. DoorDash's recent acquisition of Deliveroo for £2.9 billion ($3.9 billion) aims to strengthen its presence in the European market. The acquisition follows DoorDash's 2022 acquisition of Finnish delivery platform Wolt and is expected to bring several benefits, including access to over 1 billion people across 40+ countries [2].

However, the deal faces regulatory scrutiny in both the EU and the UK. The European Commission's simplified merger review process suggests minimal antitrust concerns, but the UK's Competition and Markets Authority (CMA) may probe the merger's impact on gig workers. The acquisition is valued at a high multiple of 13.4x EV/EBITDA, based on Deliveroo's 2025 guidance, indicating investors are paying for future growth potential rather than current profitability [2].

In conclusion, DoorDash's expansion of its commerce platform and strategic acquisitions position it to capitalize on the growing demand for food delivery services. The loyalty program and new plans are expected to enhance customer engagement and drive repeat sales, while the Deliveroo acquisition aims to strengthen its global footprint. Investors should monitor the regulatory timeline and the combined entity's integration progress as a successful execution could justify the premium paid for Deliveroo.

References:
[1] https://finance.yahoo.com/news/doordash-announces-commerce-platform-expansion-091806454.html
[2] https://www.ainvest.com/news/doordash-acquires-deliveroo-2-9bn-deal-eu-review-simplified-merger-procedure-2508/
[3] https://www.restaurantdive.com/news/doordash-loyalty-rewards-commerce-platform/758118/