DoorDash has committed an estimated $100m in commission relief to support local restaurants amidst Covid-19 pandemic. Credit: Jon Sullivan.

On-demand delivery service provider DoorDash has announced that it would cut commission fees by half for local restaurant partners suffering from severe financial crisis due to Covid-19 pandemic.

DoorDash and its sister company Caviar will reduce commissions for 150,000 local restaurants in the US, Canada and Australia.

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According to the company, eligible restaurants will be those that have five or fewer locations, with eligibility subject to DoorDash’s discretion.

The $100m commission relief programme will commence on 13 April and continue through the end of May.

Earlier, DoorDash had announced a package of commission relief and marketing support for new and existing DoorDash partner restaurants to help them generate up to $200m in additional sales this year.

DoorDash CEO and co-founder Tony Xu said: “We have already invested more than $15 million in combined commission reductions and marketing efforts, and we’ve seen restaurants across the country generate millions of dollars in incremental sales—revenue that has been vital to helping them keep their doors open during the first weeks of the coronavirus crisis.

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“We believe that doing our part is critical during this unprecedented time, which is why we are taking further steps to help our restaurant community. Brighter days are coming. There will be a time when restaurants reopen their doors, set the table, and welcome guests to celebrate. We’ll be right there with them every day until that day, and every day that follows.”

Last month, US-based online food delivery firm GrubHub had announced that it would temporarily suspend collecting commission fees of up to $100m from independent US restaurants affected by the Covid-19 outbreak.