{"id":11969,"date":"2018-12-09T07:44:48","date_gmt":"2018-12-09T07:44:48","guid":{"rendered":""},"modified":"2018-12-09T07:44:48","modified_gmt":"2018-12-09T07:44:48","slug":"uae-delivery-apps-fees","status":"publish","type":"post","link":"https:\/\/lovin.co\/dubai\/en\/community\/uae-delivery-apps-fees\/","title":{"rendered":"Small Businesses Are Calling For Food Delivery Apps To Take A Smaller Cut Of Delivery Charges"},"content":{"rendered":"
UAE residents are spoiled for choice when it comes to food delivery.<\/p>\n
There are so many applications and services for helping get food delivered with the click of a few buttons.<\/p>\n
It\u2019s sometimes overwhelming to see the sheer volume of businesses available for food delivery, with hundreds ready to send their deliciousness to your door.<\/p>\n
But some businesses are finding the apps take too high a fee for presences on the platforms.<\/p>\n
The likes of Deliveroo, Uber Eats, Zomato and the like can take a fee on the order, of around 30% of the restaurant\u2019s charges, making it feel like quite a low profit margin for the vendor.<\/p>\n
Which is good for some businesses – and the orderers, but not necessarily all outlets.<\/p>\n
Freedom Pizza owner, Ian Ohan has openly rejected the concept of delivery apps, choosing to employ his own riders to deliver pizzas to hungry UAE pizza-lovers.<\/p>\n
Ohan says: \u201cThird-party delivery companies typically charge restaurant operators up to 30% of the value of the order plus they charge AED7 to the customer. In simple terms – on an AED100 order, they are taking 37% which is simply not sustainable for any food and beverage merchant.<\/p>\n
“In addition to the economic pitfalls, add aggressive tactics by third-party delivery companies and aggregators to create a gladiator style arena to pit merchants against each other in discounting wars that mainly benefit the platforms and also the fact that merchants are giving away the customer relationship and information and interaction to a third-party.\u201d<\/p>\n<\/p>\n
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