Square launches on-demand delivery in Canada via DoorDash

Financial services company Square has launched on-demand delivery for orders made with Square Online in Canada via DoorDash Drive, DoorDash’s white-label fulfillment platform that powers direct delivery for any business.

Canada is the first international market to offer on-demand delivery since Square Online’s U.S. launch in 2020.

A Square release notes that given the challenges businesses have had to face in recent months, it’s more important than ever that sellers have access to the tools they need to sell online quickly, efficiently, and affordably. In addition, with indoor dining now shut in some provinces, food delivery will once again be relied on extremely heavily by many restaurants.

While third-party food delivery marketplaces are undoubtedly convenient, they can be costly, with businesses generally paying up to 30 per cent in commission fees and customers paying even higher prices for their orders.

Starting January 12, bars and restaurants in Canada using Square Online can provide on-demand delivery through DoorDash with no commission fee, helping restaurants continue to serve their customers while saving them money.

Restaurants, bars, breweries, bottle shops, convenience stores, or any seller using Square Online across Canada will be able to utilize DoorDash’s logistics network and dispatch a courier to deliver orders placed directly on their website including food and alcoholic beverages.

The feature is intended to provide Canadian businesses with a lucrative new revenue stream without the costly overhead associated with building out a delivery fleet or hiring and training additional staff.  Sellers pay a flat fee of $1.50 per order to Square and a flat delivery fee to DoorDash, without marketplace commissions. Sellers can then pass the delivery fee entirely to the buyer or can offer custom delivery promotions.

In the U.S., where the service first launched for Square sellers in June 2020, On-Demand Delivery has seen a 173 per cent growth year-over-year between June and December 2020 and the same period in 2021.

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