We’ll see you in there.
Connect to customize your food & drink discovery.
As restaurants have been mandated to close dine-in services, several restaurants have turned to takeout and delivery as their primary source of revenue; with delivery apps being an integral service to deliver food to customers. Many restaurants are completely dependent on mobile apps, such as Uber Eats, DoorDash and SkipTheDishes, but this is exposing underlaying tensions that have long existed between delivery services -- that take a substantial percentage of each order -- and restaurant owners.
Local restaurants have taken to Instagram, Facebook and Twitter to expose the percentages that these companies take on each order. DoorDash sits at 10%, recently departed Foodora sat at 20% and the Canadian startup SkipTheDishes takes a 20% cut off each order. US owned Uber Eats takes a whopping 30% cut from every order, and restaurant owners have strongly expressed their dissatisfaction with this.
Restaurants are no longer able to offset the cuts taken by these delivery service providers. With no customers coming in, restaurants are having a harder time absorbing the fees. Many people are not aware of how high the cost of these delivery apps are, but restaurant owners are making it their mission to get the word out.
Uber insists that zero dollar delivery costs are to help restaurants see more orders come in. Uber says they are also taking other measures such as, waiving activation fees and providing pickup through the app with no additional fees. Many restaurant owners feel the zero cost delivery helps customers but not the restaurant. Despite this, Uber has reported an increase in orders from local independent restaurants, up to 30% in North America, but Toronto restaurants still report hemorrhaging money to delivery services and eating losses.
Restaurants -- such as GTA staple Il Fornello -- have expressed that they will be turning off the Uber Eats app on Wednesdays -- National Takeout Day. Liberty Group restaurants, which include Cibo and Blueblood Steakhouse, will do the same every Wednesday. Restaurants such as Sugo have given up on the app entirely and only operate with curbside pickup. The sentiment toward Uber is very negative and people are not being shy about expressing how they feel and the losses they are incurring because of delivery through a middleman.