Restaurant delivery platform DoorDash has launched a Restaurant Disaster Relief Fund that will provide grants of up to $ 10,000 to U.S. restaurants affected by natural disasters over the next year, a the company announced on Wednesday. The $ 1 million fund will be open to eligible restaurateurs from November 1 and is a partnership with the Hello Alice small business support platform. Restaurants affected by Hurricane Ida in August and the ongoing forest fires in California are eligible, the company said.
To be eligible, restaurants must be experiencing hardship due to a state or federal declared natural disaster; have a physical location in the United States with three locations or less; and have less than 50 employees per location. Restaurants must generate revenue of $ 3 million or less at each location in the past 12 months and be open for at least six months. Requests will be processed every three months.
Restaurants can use the grant funds for rent, utilities, maintenance, supplies, payroll and other essential expenses, DoorDash said.
The company also unveiled a new partner program that connects merchants on its platform with a dedicated point of contact for support and bank reconciliation issues, and introduced a new mobile app for iOS and Android, which will be available “in the next few months”. . “It will allow restaurants to track orders live and get real-time data on sales and operations.
DoorDash’s latest restaurant announcement comes at a somewhat tricky time. The company is involved in two lawsuits against New York City that involve laws attempting to regulate how delivery companies work with restaurants there.
Along with Grubhub and Uber Eats, DoorDash is suing NYC for capping the amounts that platforms can collect in fees from restaurants. In a complaint filed in U.S. district court on September 9, the companies argue that the fee caps are excessive by the government. They sought an injunction preventing the application of the rule that prohibits platforms from charging restaurants more than 23% per order, but they were accused of adding unclear charges in addition to their delivery costs, exceeding the maximum.
And on September 15, DoorDash filed a lawsuit against New York City on its law requiring delivery companies to share customer data with the restaurants it works with, call him “A shocking and pervasive intrusion into the privacy of consumers”. Earlier this month, the the city agreed to suspend on the application of the data sharing requirement while the trial is pending.
In his second quarter results report, DoorDash reported that its gross order volume increased 70% year-on-year to $ 10.5 billion, but its revenue was up 83% from the quarter last year, to $ 1.2 billion.