> ## Documentation Index
> Fetch the complete documentation index at: https://localtechnologiesinc.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.

# Delivery modes

## How Local Pass Delivery, Pickup, and Vendor's Own Delivery affect wallet fields and payouts.

## Overview

Local Pass supports three fulfilment modes. The mode determines **which wallet fields are populated** when an order completes, which in turn affects the net transfer amount at payout time.

<Note>
  The delivery mode does not change the payout transfer formula — it determines which fee fields (particularly `merchantSubsidy`) are present in the wallet at settlement time.
</Note>

***

## Mode comparison

<Tabs>
  <Tab title="Local Pass Delivery">
    ### Local Pass Delivery

    A customer places an order and selects standard delivery. Local Pass dispatches a driver from its network to collect the order from the vendor and deliver it to the customer.

    **How it works:**

    * Customer pays for delivery at checkout
    * Local Pass assigns a driver from its network
    * Driver collects from the vendor's location
    * Vendor is not involved in the logistics

    **Wallet impact:**

    | Field              | Populated?     | Notes                                           |
    | ------------------ | -------------- | ----------------------------------------------- |
    | `Total`            | ✅ Yes          | Order subtotal                                  |
    | `Tax`              | ✅ Yes          | Customer-paid tax                               |
    | `Platform fee`     | ✅ Yes          | Local Pass service fee                          |
    | `Merchant subsidy` | ⚠️ Conditional | Populated if vendor contributes to driver costs |
    | `Cancellation fee` | ⚠️ Conditional | Only if vendor cancels the order                |
    | `Discounts`        | ⚠️ Conditional | Only if vendor applied a promotion              |

    <Note>
      `Merchant subsidy`is deducted **after** the Stripe transfer completes, not from the transfer amount itself. It is tracked separately for driver cost accounting purposes.
    </Note>
  </Tab>

  <Tab title="Pickup">
    ### Pickup

    The customer places an order and collects it directly from the vendor's location. No driver is dispatched.

    **How it works:**

    * Customer selects pickup at checkout
    * Order is prepared by the vendor
    * Customer arrives and collects their order
    * No delivery logistics involved

    **Wallet impact:**

    | Field              | Populated?     | Notes                              |
    | ------------------ | -------------- | ---------------------------------- |
    | `total`            | ✅ Yes          | Order subtotal                     |
    | `tax`              | ✅ Yes          | Customer-paid tax                  |
    | `Platform fee`     | ✅ Yes          | Local Pass service fee             |
    | `Merchant Subsidy` | ❌ No           | No driver involved                 |
    | `Cancellation Fee` | ⚠️ Conditional | Only if vendor cancels the order   |
    | `Discounts`        | ⚠️ Conditional | Only if vendor applied a promotion |
  </Tab>

  <Tab title="Vendor's Own Delivery">
    ### Vendor's Own Delivery

    The vendor uses their own vehicle, staff, or courier to deliver the order. Local Pass handles the order placement and payment, but not the physical logistics.

    **How it works:**

    * Customer selects vendor delivery at checkout
    * Local Pass processes payment as normal
    * Vendor arranges delivery using their own resources
    * No Local Pass driver dispatch

    **Wallet impact:**

    | Field              | Populated?     | Notes                                   |
    | ------------------ | -------------- | --------------------------------------- |
    | `Total`            | ✅ Yes          | Order subtotal                          |
    | `Tax`              | ✅ Yes          | Customer-paid tax                       |
    | `Platform Fee`     | ✅ Yes          | Local Pass service fee                  |
    | `Merchant Subsidy` | ❌ No           | Vendor handles their own delivery costs |
    | `Cancellation Fee` | ⚠️ Conditional | Only if vendor cancels the order        |
    | `Discounts`        | ⚠️ Conditional | Only if vendor applied a promotion      |
  </Tab>
</Tabs>

## Fee summary by mode

| Fee field          | Local Pass Delivery           | Pickup                 | Vendor's Own Delivery  |
| ------------------ | ----------------------------- | ---------------------- | ---------------------- |
| `Platform fee`     | ✅ Always                      | ✅ Always               | ✅ Always               |
| `Merchant subsidy` | ⚠️ If configured              | ❌ Never                | ❌ Never                |
| `Cancellation Fee` | ⚠️ If cancelled               | ⚠️ If cancelled        | ⚠️ If cancelled        |
| `Discounts`        | ⚠️ If promotion active        | ⚠️ If promotion active | ⚠️ If promotion active |
| Driver payout      | Handled outside vendor wallet | N/A                    | Vendor's own cost      |

***

## Merchant subsidy explained

The `Merchant subsidy`field appears in the vendor wallet **only for Local Pass Delivery** orders where the vendor contributes toward driver costs.

<AccordionGroup>
  <Accordion title="What is it?">
    When a merchant uses their own fleet of drivers and offers free delivery, the customer pays \$0 at checkout. In this case, Local Pass covers any outstanding balance owed to the driver at the end of the billing cycle, and the amount is then deducted from the merchant’s wallet.
  </Accordion>

  <Accordion title="How is it deducted?">
    `Merchant subsidy`is **not subtracted from the Stripe transfer amount**. It is instead decremented from the wallet balance fields **after** a successful transfer. This keeps the driver cost accounting separate from the money-in-transit calculation and ensures the Stripe transfer record reflects only the vendor net.
  </Accordion>

  <Accordion title="Is it shown to vendors?">
    Yes. When `Merchant subsidy > 0`, a "Driver payouts: −\$X.XX" line item is shown in the Payment Breakdown section of the Wallet page, along with an info button explaining the subsidy.
  </Accordion>
</AccordionGroup>

***