On Thursday, April 2, 2020, a Berlin-based food delivery provider, Delivery Hero announced that it has taken measures to support restaurants, which have been severely hit by the coronavirus lockdown. Delivery Hero, one of the world’s top online food delivery service platforms, is focusing to increase its deliveries to consumers, who have been locked at home, through supporting several struggling restaurants.
Delivery Hero Helping Restaurants
The food delivery platform, Delivery Hero has its operation in many regions including Europe, the Middle East, Latin America, and Asia by collaborating with nearly over 500,000 restaurants worldwide. With the increasing lockdown of markets and implementation of stay-indoors policy, several restaurants across the globe have shut and demand for online shopping rapidly increased.
Restaurants and cafes across the globe have been closed due to the government’s policy of national lockdown to contain the virus spread. This has prompted many businesses to switch to home deliveries, with some offering takeaways directly to local customers, without using an app. With the aim to support the failing restaurants, Delivery Hero had added 50,000 new restaurants to its platform in the last three weeks, as well as aligning with 1,500 grocery stores and pharmacies as it focused to expand its deliveries to other essential products besides meals.
The online food platform has stepped into various programs including the onboarding process for new partner restaurants, increasing the frequency of payments to its partners to improve their cash flow, and offering free delivery for customers close to restaurants. Niklas Ostberg, the founder of Delivery Hero told Reuters, “Many of these restaurants might have liquidity for one, two or three weeks of sales so they could go bankrupt very quickly… There will be partners who don’t make it through.”
Players of Online Food Service
With the lockdown, the online food service platforms have witnessed a surge of demand from people and many companies teamed up to expand its operations in several regions. Analysts explained that the self-isolation policy has made the online food order less since many of the customers have time to cook staying at home. Meanwhile, it was also reported that several online platforms witnessed that their business attracted many new customers, particularly in countries where people have a culture of going out for dinner.
On Wednesday, April 1, 2020, Uber announced that it has entered a partnership with the French supermarket group, Carrefour for a new delivery service aimed at expanding its supply for essential goods and food. US rival player, GrubHub Inc. has implemented a new policy last month announcing that it would temporarily suspend the collection of commission fees of up to $100 million from those independent US restaurants affected by the coronavirus outbreak.
Delivery Hero also has decided to stop taking a commission on each meal ordered from restaurants and offered free delivery to customers if the order is closed by the restaurants. Considering the threat of the virus spread, Ostberg said, the company implemented no-contact delivery to make the process safer and stated that many new riders were showing a willingness to work for the deliveries.
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