It has also reportedly laid off 367 staff this week and furloughed just over 50 others.Ī Deliveroo spokesperson said: "The extraordinary global health crisis we are living through has impacted nearly all businesses. competition regulator to approve a $575 million investment from Amazon. The decline in orders isn't just hurting the restaurants and the riders: the food delivery apps are also struggling.ĭeliveroo admitted it was quickly running out of money earlier this month as it looked to convince the U.K. McDonald's, Burger King, and KFC have all closed in the U.K., as have thousands of other restaurants. The main reason is because many of the biggest and most popular restaurants on the food delivery apps have chosen to close entirely. couriers told CNBC that they're making significantly less than they normally do as a result of the pandemic. Deliveroo did not immediately confirm whether Cojocariu is a rider for the company. "I am a rider and have yet to receive any mask or hand sanitizer from Deliveroo," said Roxana Cojocariu. Uber Eats and Deliveroo have told riders they can apply for free masks and hand sanitizer, but some Deliveroo riders claim they have been waiting weeks for the safety packages to arrive. "We want to protect jobs for when the lockdown is lifted, so placing an increased fee on restaurants who currently have no public footfall isn't helpful in any way." "Most of our chef members, who are risking public transport to go into workplace kitchens to prepare meals for delivery, are not being paid anything extra," said Unite officer with national responsibility for the hospitality industry, Dave Turnbull. Trade union Unite condemned the way restaurants are being treated by food delivery companies. "We touch the table, they touch the same table. "We are the most exposed people to the risk now," said Kassem, who owns a fish and chip shop. To try to minimize the chance of infection, Deliveroo and Uber Eats have introduced a contact-free delivery option in their apps, but not everyone feels safe. "At the beginning of the crisis, we put in place a range of initiatives to help restaurant partners, particularly small business owners, as they keep their kitchens firing to feed people across the country." "We are committed to supporting restaurants and the thousands of people who rely on them for work and as an essential service during this difficult time," said an Uber Eats spokesperson. Deliveroo also has variable fees but the company refused to disclose them. If restaurants use their own riders then it's 13%, and if they only offer collection, then it's free. Uber Eats charges different levels of commission depending on the package that the restaurant goes for.įor the full package - where restaurants list on the app and use Uber Eats riders for the delivery - there's a variable commission fee that is capped at 30%. The rate of commission is slightly better for restaurants with Uber Eats, but only marginally. "Personally, I think it's a little high but we cannot do anything," she said. Tong Soklee, who owns nearby Asian restaurant Yoriya, agreed that Deliveroo's fees are problematic in the current climate. The latter offers some of the fairest rates, according to restaurant owners. In a bid to increase their orders, restaurants across the country raced to sign up to Deliveroo, Uber Eats and Just Eat. Restaurants were, however, able to carry on offering takeouts. Prime Minister Boris Johnson told restaurants to close on March 20 as part of an effort to slow the spread of the coronavirus. We are working with restaurants to optimize their operations for delivery, and we are doing everything we can to make sure people still have access to the food they want and need." "It's too high," he said, adding that in the last two months, the $2 billion-plus start-up has charged him between £4,000 ($4,973) and £5,000 with a £506 signup fee.Ī Deliveroo spokesperson said: "We are here to deliver for restaurants who want to carry on offering their amazing food to families at home during this difficult time. Mohsen Seify, who owns Crust Trust Pizza in Kingston near central London, told CNBC that Deliveroo's commission works out at 42% per order when VAT is factored in. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
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