Most people these days have used Uber eats or a similar service, such as Deliveroo or Menulog. The convenience of being able to order on your phone and having a meal delivered straight to your door is second to none. There is no doubt that these food delivery services have sometimes been the only option to order take-away food during COVID-19 lockdowns. I know this all too well as I was in complete isolation for 14 days and had to order food from restaurants that were only 200 metres down the road, I would have loved to walk down and pick up my food, but I couldn’t!
However, as the country is opening back up and dining in restaurants is now possible, it is important to understand the negative effect that these food delivery services are having on our local cafés and restaurants. When COVID-19 began, Uber eats made an announcement saying that they would waive the sign-up fees for new restaurants and not charge a service fee for pick up orders. This sounds good, but the real kicker is that Uber Eats continues to charge up to 30% commission on all orders, which is often more than the profits made from the order, meaning restaurants actually lose money.
As the popularity of the apps has risen over the years, many restaurants have reluctantly signed up to keep up with their competitors, even though they are sometimes running at a loss. Now in the current environment, it is almost impossible not to offer some sort of delivery service. And because restaurants can’t make a profit, some have started to increase the price of menu items on delivery apps. You may find that certain dishes are 20-30% more expensive when ordering through an app than if you dined in or picked up your order directly from the restaurant.
The best way to help your favourite eateries is to turn up and dine in the restaurant (COVID-19 restrictions permitting). And when you need to order take-away, consider picking it up yourself or seeing if they have their own delivery service outside of the well-known apps.
There is another side to the story and that is side of the delivery riders. The workers are often immigrants on visas and aren’t eligible for any government assistance, so the huge demand for food delivery is a way for them to earn enough money to survive. Although there is always work, the riders feel as though the big corporations are not doing enough to ensure their safety. Deliveroo and Uber eats said they were reimbursing its riders $10 for the purchase of hand sanitiser, but this was a one-off offer.
The Transport Workers’ Union of Australia has sent letters demanding food delivery companies provide full safety equipment to their employees. “At a minimum, this includes disposable gloves, hand sanitisers and face masks,” it said. It also demanded companies cover medical cost and sick leave for workers who contract the virus. Deliveroo and UberEats offered temporary support to riders who could prove they had contracted the virus, but one rider said he worried about how he’d survive waiting to get tested.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.
