• DoorDash’s CEO, Tony Xu, told CNBC in an interview that the pandemic is the worst challenge for restaurants in “over three decades.”
  • Nearly 3% of restaurants in the US have closed permanently, and the percentage could jump to 20% before the end of the pandemic.
  • DoorDash is working with local businesses to lower DoorDash’s commissions and cut delivery fees.
  • DoorDash is trying to help give furloughed workers temporary jobs, and give employees protection during the coronavirus pandemic including masks and gloves, but also COVID-19 testing and financial support if infected.
  • Visit Business Insider’s homepage for more stories.

Tony Xu, CEO of food-delivery service DoorDash, told CNBC the coronavirus pandemic is “the most difficult challenge I’ve seen the restaurant industry go through in over three decades.”

The tech executive, who noted his father was a restaurant manager, said he’s still optimistic local businesses will continue to drive “the vast majority of GDP in every city.”

DoorDash is one of several services relied upon heavily to deliver food and groceries during the coronavirus pandemic as stay-at-home orders are in effect and cities have relegated restaurants to take-out and delivery options only.

The restaurants that work with delivery services like DoorDash face a daunting future, as 3% have already closed permanently and 20% are expected to close for good during the coronavirus pandemic.

But that's why DoorDash is trying to work with restaurants by cutting DoorDash commissions in half or waiving DoorDash commissions for restaurants joining the platform for the first time, and giving free deliveries on Saturdays, Xu said during the interview.

Xu also said DoorDash is trying to ease the burden of the epidemic by offering temporary work for employees who are furloughed as well as trying to keep workers safe by distributing more than 1 million kits of sanitizer and gloves, distributing 5 million masks, and making sure workers get access to tests if exposed to COVID-19 and receive financial assistance if infected.

Despite the bleak state of the restaurant industry, Xu told CNBC that he was optimistic about what might lie ahead for businesses and workers despite the coronavirus pandemic.

Xu told CNBC that while it's a difficult time for everyone, especially the restaurant industry, about 80% of restaurants "are still going strong."

"I know that local business in every decade has produced the vast majority of GDP in every city and I think that will continue to be the case," Xu told CNBC.

Read more: Tests that can tell if you're immune to the coronavirus are on the way. Here are the companies racing to bring them to the US healthcare system.

But it will be an uphill battle for the restaurant industry, which took a $255 billion hit and is likely to see 110,000 more US restaurants shut their doors forever in the next month.