The Impact of COVID-19 on the Food Delivery Industry

Video by Viktoriya Kozoriz

By Iman Adem

The demand for online food delivery has increased significantly amid the pandemic. Many local restaurants across Toronto have relied on delivery services to survive. 

Connor McPhail is the owner of Snacko, an online snack delivery service. His business relies entirely on food delivery services. Unlike many small businesses, the pandemic has caused sales in his business to significantly increase.

McPhail says that while some delivery services like Skip The Dishes have lowered commission rates, other businesses; such as Uber Eats have invested more in advertising, and have made the option to donate to local businesses available. 

Dine-in regulations differ from region to region, and as a result many businesses use third-party delivery services, such as Uber Eats to maintain sales.

In a press release, Uber Eats CEO, Dara Khosrowshahi, stated that this year, gross bookings have increased 122 per cent. She also highlighted that the company is focusing on safety precautions. “Our team continues […] to respond to the pandemic’s impact on our communities and on our business, leading our industry forward with new products and safety technologies.”

Infographic By Kirsten Svitich

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As restaurants struggle to adapt to the current climate, delivery-only restaurants such as Ghost Kitchens have seen sales increase during the pandemic. Low labour costs allow for the company to focus solely on meal preparation and delivery. 

“As people stay closer to home, more people are ordering from Uber Eats than ever before,” says Khosrowshahi. Representatives from both Ghost Kitchens and Snacko are not worried about losing business once COVID-19 cases decrease. McPhail believes that his online relationship with his customers has allowed for him to gain more loyal customers; “Everybody likes snacks. That craving is never going to go away so I don’t expect much change.”

Interactive By Kirsten Svitich