The coronavirus outbreak is forcing more people to turn to food delivery apps when they stay home, and restaurants are shutting down their dining options. Although keeping up with rising orders is putting pressure on restaurants and delivery apps, many have responded by eliminating fees and hiring more staff.
“I think most consumers perceive the situation. Estimates of delivery times vary, and food may arrive much later than expected when ordering. Some restaurants have the minimum number of workers to offer delivery or pickup services. Everyone wishes for patience in these turbulent times,” said Michael DiBenedetto, CEO and founder of FoodBoss.
FoodBoss uses an aggregation style to gather insights into popular food delivery services, including available restaurants, most productive offerings, delivery times, menus, and real-time price accumulation. The app can compare Postmates, Uber Eats, Delivery. com, Caviar, and EatStreet in more than 50 cities. FoodBoss is seeing an increase in contactless delivery features due to the coronavirus. Consumers need deliveries to be dropped off at their doorstep without having contact with drivers.
According to FoodBoss data, the increased demand for food delivery led to higher prices in the first place. “There was a price increase last week, but that has shifted dramatically to more moderate rates across the board. From March 12 to March 18, we found that food delivery rates were 16. 3% higher than they were in the first week of February,” says DiBenedetto.
Some food delivery apps have responded to this sharp increase by cutting fees. For example, Uber Eats stopped charging delivery fees on local restaurant orders in the U. S. Consumers are the only ones who take advantage of the lack of tariffs. Grubhub is temporarily waiving commissions to restaurants, which it says gives restaurants $100 million in relief.
“Companies sense the complicated situation other people are in right now and need help to actively seek maximum profit. There has been a sense of unity among all parties involved (consumers, restaurants, and apps) to ensure that food delivery is more efficient. “Accessible,” DiBenedetto said.
There has also been an increase in hiring across the country as corporations struggle to locate more delivery drivers and other staff. Amazon is hiring 100,000 people and raising wages from $15 to $17 an hour. Domino’s Pizza needs to hire 10,000 employees for delivery operations and Walmart plans to hire 150,000 new employees.
DiBenedetto believes there can be a long-term positive effect on restaurants. “I really think everyone is focused on the current situation and how we can help. That said, some of the assistance delivery facilities introduced through Waiving Restaurant Fees will likely lead to an expansion of delivery service as more restaurants sign up for the pool. decreases,” he said.
For now, food delivery apps aim to meet the growing demand from those stuck at home and tired of eating the same thing or having to fill their fridges due to empty grocery store shelves.