Increase in Food Delivery Service Charges Amidst a Global Pandemic
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Increase in Food Delivery Service Charges Amidst a Global Pandemic

VIDEO: lowering food delivery service charges and how it would affect employees and consumers (Darya Soufian/ RSJ)

Video by Darya Soufian

By Maha Abbasi

Canadian politicians like Doug Ford are urging delivery platforms such as Uber Eats to lower their delivery charges.

In recent months the fees has gone up but due to the COVID-19 pandemic big third party platforms are being called on by officials to do their part in supporting local businesses.

Ford said that restaurants that want to have their food delivered are spending up to 30 per cent in commission

Employee

Uber Eats courier Lexson Millington has worked there for four years. He believes if the fees is decreased there will be more flexibility and customers will be more likely to tip.

Consumer

Individual using a laptop with Uber eats app visible on the screen.
Uber Eats application open on a laptop, April 7, 2019 (Charles Deluvio/ Unsplash)

Second-year Ryerson University student Lina Elsaadi uses food delivery services. She said the service fees help do not help the restaurant, they help the delivery platform instead.

She said the restaurants then have to make profit off the price of food only, which results in their own prices going up.

Due to COVID-19 there are many restrictions on dining out, but this also means other issues arise with food delivery apps.

Multimedia by Kylie Marsman

Customer’s Issues with Delivery Apps

One of the largest problems when there are issues with a customer order, is whether or not it’s the restaurant’s fault, or the food delivery service. If food comes cold, was it the kitchen or that the driver took too long to get it to drop it off? A problem which many people have experienced is the restaurant can accept their food order, and make it, but there is no courier available, so the food sits until one becomes available. This lowers the restaurants rating on the app, which can result in less people choosing the place, and can lead to less revenue for the business.

Data reported from research company Zion & Zion, shows while the frequency of consumer issues range from approximately 20 to 30 per cent, about 38 to 60 per cent are “very frustrated” by these issues. This information was surveyed from 1,084 United States consumers. Issues are reported an average of 24.4 per cent of time with multi- restaurant delivery apps and websites.

October 30, 2020

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