The Latest on Online Food Delivery Commissions

Online food delivery services already played a huge role in our lives before the COVID-19 crisis, and now, they are crucial. But as the hospitality industry has been forced to pivot to takeaway-only, huge financial pressure has been building on cafes and restaurants already suffering due to a dramatic drop in customers.

We’ve spoken to many customers who say commission charges of up to 30 per cent, often charged by the online delivery services like UberEats and Deliveroo, are simply unsustainable.

But last week, a relative newcomer to the Australian delivery scene DoorDash announced it was slashing its delivery commission in half for most restaurants. It is the first to do so amid the coronavirus crisis.

So, what’s the deal?

DoorDash will halve the amount it takes from operators;

• If they are in Melbourne or Sydney,
• If they have five or fewer locations,
• until the end of May.

DoorDash Australia’s General Manager Thomas Stephens said, “We have been actively engaging with our restaurant partners to understand the best way we can support that community through this pandemic,” in a statement.

“By providing over 80% of restaurants on the DoorDash platform in Australia with a 50% commission reduction, we’re focusing this most recent relief effort on those most vulnerable: local businesses.”

So what about the other platforms? It is almost impossible to gain information on the commission structure for operators like Deliveroo and UberEats but it has been widely reported it can be up to 30%. However, they have announced a few other initiatives including cutting some fees and offering free pickup, neither have committed to a commission reduction.

If you’ve moved to a takeaway-only service, it may be time to look at your commission expenses and encourage your customers to migrate to the service that makes the most sense for you.

Tip Top Foodservice is not affiliated with any online delivery service, merely hoping to support our customers to reduce costs and continue operating in this tough time.