The battle between restaurants and food delivery apps for high commissions in the middle of the

However, a large part of their orders come from these applications. (Photo: Jonathan Ernst / Reuters)
However, a large part of their orders come from these applications. (Photo: Jonathan Ernst / Reuters)

During quarantine, mobility applications to deliver food to your home They have been one of the digital elements most aided by people who stay at home to avoid infections and at the same time want help businesses in your community; However, the restaurants have been seen injured for these dynamics.

Pitas and Sticks, a Greek restaurant in Brooklyn, New York, adds notes to users every time they order this way: “Small businesses like us need your support in this time of crisis. The online apps are charging 30% of each order(...) Please help save the restaurant industry by order directly from us"Reported NBC News.

It is from these situations that restaurateurs in United States cities such as New York have organized to persuade customers not to use those platforms. The alternatives that have been proposed have been to give special offers through their social networks or definitely leave the application.

So apps like Uber Eats and Grubhub, which also owns Seamless and DoorDash, have become one of the main problems for small and medium entrepreneurs in the middle of the pandemic by the new coronavirus.

(Photo: Kathleen Flynn / Reuters)
(Photo: Kathleen Flynn / Reuters)

For restaurateurs, this situation puts them in a disjunctive, because while the applications charge them important commissions for each order, most also come from these platforms. John Stamos, owner of Pitas and Sticks, told the media that the 90% of your orders they are through Grubhub.

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Although in a normal moment, the apps were beneficial for restaurants up to the level of not having to hire courier staff, now, during the pandemic, digital transactions represents a much of their business.

Against this background, politicians in different cities of United States have taken steps in this regard. In ChicagoFor example, it was ordered that the applications should be more transparent regarding their tariffs on customer receipts. It should be said that this city is where the Grubhub headquarters.

In other entities of the country such as Washington, DC, Seattle or San Francisco the commissions up to fifteen%, Meanwhile in NY the cap was 20 percent.

(Photo: Brendan McDermid / Reuters)
(Photo: Brendan McDermid / Reuters)

The position of those responsible for applications is clearly in against the limits; however, the spokespersons consulted by the television channel did not speak about the restaurant owners concerns, which are related to the optimization of payments, the Customer Support or other marketing services.

Seeing the notes that the owners of the establishments they write by hand, diners they have changed their mind. "People say ‘Ok, I didn't know’. Is it so ready to changeStamos commented.

It's clear that NY It is not the only city that has suffered from this problem. In Santa Barbara, California, the owner of a pizzeria told the American media that working with apps like Grubhhub quickly became unsustainable After the health emergency climbed.

For applications, the environment not encouraging either. In early May, Grubhub announced that during the first quarter of the year, the company had an increase in orders, but a decrease in your earnings. On the other hand, it was recently announced that Uber could buy it, which would get up to 48% of the delivery market, according to Second Maesure data.

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How home delivery service apps raise your budget by just over 90%

Delivery in quarantine: due to app commissions, stores and food stores lose up to 25% of the value of each sale

About the author


Sam Conley

Sam Conley is new to online journalism but she is keen to learn. She is an MBA from a reputed university. She brings together relevant news pieces from various industries. She loves to share quick news updates. She is always in search of interesting news so that she can share them as well to Sunriseread's readers who could enjoy them with their morning coffee.

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