New Zealand’s third week in lockdown was it's most deadly, but as new case numbers continue to fall, NZ remains optimistic that Level 4 restrictions may be lifted on schedule.
As restaurants hammered by the Covid-19 lockdown prepare to partially reopen for business, they have been dealt another blow after ever-growing delivery service Uber Eats fended off hopes it would drop its commission rate.
Uber Eats charges between 30-35 per cent on all orders, and with profit margins for foodoutlets set at around 3-5 per cent, many business owners have been losing money on the service.
A week out from the country leaving lockdown alert level 4, Restaurant Association boss Marisa Bidois revealed that the body had hoped Uber Eats would drop its commission rate.
She also revealed it had called on the Government to enforce a cap on commission rates for all third-party delivery companies.
And she said many restaurants wished they didn't have to use Uber Eats, but due to their marketing power and size of their customer database, many had little choice.
While Prime Minister Jacinda Ardern called on Kiwis to shop and dine local when the nation goes into alert level 3 next week and beyond, the Government was not planning any moves over the commission rate request.
"I would just encourage consumers, all New Zealanders who may be looking forward next week to accessing take-away food ... to look at your favourite local eatery – and I do encourage you to support local businesses – and just look at whether or not they offer delivery directly themselves," Ardern said.
Marisa Bidois, chief executive of the Restaurant Association. Photo / Supplied
Uber Eats would be back in action from Tuesday next week in time for lunch-time trade, with contactless delivery the default setting.
Many restaurantuers had hoped a maximum commission rate could be looked at.
Hospo
In San Francisco, a 15 per cent cap was placed on commissions charged by all food delivery food platforms in the Bay area during Covid-19.
"We are urging the New Zealand Government to place the same restrictions in the New Zealand market to give our Kiwi hospitality businesses a fighting chance of survival," Bidois said.
"We're also calling on Kiwis to support their local restaurants and cafes by jumping on their website or giving them a call with their delivery order."
There were no plans for Uber Eats to change their own commission rate, a spokesperson told the Herald.
As many foot outlets prepared to reopen there was a growing criticism of the charges on social media.
Oh NZ, continue making us proud and say no to ubereats. Keep local businesses afloat by ordering from them directly and not using ubereats and their exorbitant fees and commissions which will put people out of business. #noubereats#noubereatsnz#ubereats
Next week I want to support as many #Wellington restaurants as possible. I really hope there are practical and safe ways I can do this. I don't want to use @UberEats as I want my dollar to support restaurants, their staff and families. #nz
"Many of them are struggling but many of them are remaining optimistic though as well, which I find absolutely incredible.
"Our businesses are crying out for more assistance, that's the major message we're getting from our industry at the moment."
One way the Association hoped to help was by getting Uber Eats to drop its commission rate for delivering businesses meals.
Hospo
While Uber Eats wasn't looking at dropping its fees, a new restaurant tipping feature would be introduced on the app once it was live again next week.
The feature had been used in Australia with restaurants receiving more than $500,000 in tips during the first week of the roll-out.
"We understand that this is an incredibly difficult time for the restaurant industry and particularly small business owners," the Uber Eats spokesperson said.
"Our goal at this time is to support restaurants to stay open for business for as long as they can and to continue to capture the demand from customers through pick up and delivery."
