Forking over cash for pizza deliveries is a decades-old tradition.
But the nation’s No. 1 delivery operator, DoorDash, doesn’t deal in cash.
That policy changes this week with the launch of Cash on Delivery for DoorDash’s white label delivery service, DoorDash Drive, DoorDash announced Tuesday. The delivery service, available since 2016, allows restaurants and retailers to offer delivery through their own digital channels — a feature rivals like Grubhub and Uber Eats didn’t offer until years later. Drive is used by chains like Chipotle and Wingstop.
While Cash on Delivery is available to any restaurant using DoorDash Drive, DoorDash said pizza and Chinese restaurants have been early adopters of Cash on Delivery during testing. DoorDash said pizzerias opting in for cash upon delivery had seen the most value, with nearly 20% of pizza orders paid with cash.
Ohio-based Donatos Pizza has been testing Cash on Delivery for nine months. The fast-casual pizza chain has more than 440 locations in the US.
“Cash On Delivery through DoorDash Drive is one way we’ve maintained this high-quality service our loyal customers expect, as we can grow our business online while still enabling customers to pay with cash should they desire,” Ben Smith, director of operations development at Donatos, said in a statement.
DoorDash said Cash on Delivery is only available for restaurants using DoorDash Drive because those merchants specifically requested a cash option as many customers expect flexible payment methods. Cash on Delivery is unavailable for customers placing orders on the DoorDash app.
“Customers coming to DoorDash expect to pay with credit card, opposed to with cash,” DoorDash told Insider.
Pizzerias have historically performed their own deliveries long before the rise of delivery apps like Grubhub and DoorDash. Some independent pizza shops and chains like Domino’s have balked at using third-party delivery apps like DoorDash. Still, pizza chains like Domino’s have seen sales slowdown as they face a shortage of delivery drivers.
As such, DoorDash said its white-label delivery service could be an attractive option for pizza operators looking for a delivery service that now also accepts cash.
“Operators are looking for support in fulfilling off-premise demand,” DoorDash said. “Our white-label fulfillment platform that powers direct delivery for businesses is one flexible solution that enables restaurants to meet off-premise customer demand without requiring operators to invest in their in-house delivery.”
DoorDash said delivery drivers who use Cash on Demand benefit because they gain instant access to their earnings. All of the cash collected is theirs to keep, including 100% of tips, DoorDash said. The total order amount is deducted from their weekly earnings.
DoorDash said nearly 500,000 Dashers have completed a cash delivery over the past year.