Policy

How DashPass Members Make the Most of their Local Neighborhood

DashPass helps consumers find new local favorites and merchants grow their sales.

10/3/23
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Customers who know and love DoorDash have many ways to use the DoorDash platform to access the best of their neighborhoods. One of them is DashPass, DoorDash’s membership program that offers $0 delivery fees on eligible orders from thousands of restaurants, grocery, convenience, and retail stores. DashPass pays for itself in 2 orders, on average––an especially worthwhile membership for consumers who are juggling family, work, and other obligations. Through our data and our latest survey of US consumers, it’s clear that DashPass members make the most of this resource. 

DashPass helps consumers find new local favorites

When they’re not dining in at a restaurant, 75% of DashPass members surveyed say that the majority of their restaurant orders come through a third-party delivery app compared to 56% of classic consumers (those who do not have a DashPass membership). Although they may physically be at home, in the office, or at their child’s school function, DashPass members are explorers: 83% of DashPass members surveyed had used DoorDash to try restaurants that they would not have otherwise tried compared to 65% of classic consumers. The same is true in the retail and grocery space: 23% of DashPass members surveyed had used DoorDash to order from a retail or grocery store that they would not have otherwise tried compared with 12% of classic consumers. From small, last-minute grocery items to special events and birthdays to gifts for their loved ones, DashPass members harness the convenience of DoorDash, especially as many don’t have the time or energy to prepare a meal at home or go out to fetch a grocery/retail item. Compared to classic consumers, DashPass members are more likely to use DoorDash to order retail products for last minute items, provide food for special occasions and send gifts.

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Source: DoorDash US Consumer Survey, March 2023

The convenience gives them time back to relax, unwind, or finish up work: 84% of DashPass members said that DoorDash helped them be more productive or gave them time for other activities. That’s time back for work, to relax or time for their families. 

With DashPass, members place more orders and return to their favorite merchants more often

Being on DashPass doesn’t just help consumers get what they need, the merchants they discover and order from benefit too. Looking at our data for June 2023 in the US, we explore how DashPass members use the platform and support local merchants. From order size to order frequency, we find that DashPass members were more likely to make the most of the platform as compared to classic consumers. The average DashPass member placed about 10% larger orders than the average classic consumer:

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Numbers in chart have been rounded

Our data shows that DashPass members order more frequently and spend significantly more with local merchants on DoorDash Marketplace than classic consumers over the course of the month. As we saw above, DashPass consumers are more likely to explore the breadth of what’s available on the DoorDash Marketplace. If we look at the median DashPass consumer who had DashPass membership for the entire year of 2022 and compare them to the median consumer who did not have DashPass at all in the year, we see that the DashPass consumer ordered from around 55% to 60% more unique merchants than the classic consumer over the course of the year:

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Not only do DashPass consumers explore more but they are also loyal when they find their favorite spots. DashPass consumers were more likely than classic consumers to return to their favorite spots: 43% of DashPass consumers ordered from the same business twice over the course of the month and almost 1 in 5 members ordered from the same business three times over the course of the month: 

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And DashPass members remain sticky across merchants too. They were more likely to return to more merchants than classic consumers. Almost 1 in 8 DashPass members ordered from two different businesses at least twice in the month compared to almost 1 in 16 for classic consumers.

Merchants unlock more sales with DashPass

DashPass members explore more, return to more restaurants and do so more often. This means that DashPass can help merchants access loyal customers and grow on DoorDash. Using our order data from 2022 onwards, we see that the median independent merchant on Marketplace saw an increase of about 32% in total order volume in the first 30 days of being on DashPass compared to the 30 days preceding. Once they joined, about half of their orders now came from DashPass members:

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Note: Based on a sample of over 3,300 independent stores with sufficient pre and post ordering data from 2022 onwards. 

The impact of DashPass is bigger for local, independent merchants: we harness our data to uncover how our product offerings can benefit merchants. Our internal models predict that DashPass creates a bigger increase in sales for independent merchants. This is based on a comparison of merchants with and without DashPass, controlling for attributes such as size and tenure. Our latest survey of independent merchants reiterates this: 85% of independent merchants on DashPass surveyed agree that DoorDash helps them reach new customers they would otherwise not be able to reach and 76% agree that DoorDash helps them establish a bigger presence in our community.

“I love DashPass,” says Michael Lee, owner of Bon Bon Berry. Their decision to sign up as one of the first DashPass merchants is one that paid off in the long run, bringing repeat orders that drive business growth. “DashPass has helped us to get new and loyal customers – most order 5 out of 7 days a week. DashPass brings me a lot of loyal customers that order regularly."

DashPass can help merchants enhance their performance on the platform while offering more of the local best to consumers.