Delivery aggregators in Dubai have come under fire this week as some F&B outlets escalated calls against their fee sharing agreements. Commission fees for delivery may reach up to 35% of orders, which adds another heavy burden on restaurants already grappling with the coronavirus fallout.
With restaurants intensifying their online presence, will delivery companies reevaluate their business model?
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Couldn’t have said it any better thanks Peter Lyons We have a tough road ahead with these guys! I had a long session with one of these aggregators and they gave nothing but PR talk! “We will let your brands be more visible on our platform”! Well that’s not going to cut it!
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The justification here is nothing more than a well written retort that tries to deflect from the fact that commission rates are too high , any operator can run through a much larger list of overheads , bottom line is the restaurants are the producers , aggregators are only a digital logistics and, marketing entity. Such can be accomplished with much less of a charge. I firmly believe that the solution to this situation is to create an alternative that doesn't extort it's operators. https://lnkd.in/fmT3jbe
Global Marketing, Technology Leader | 26 Years | B2B & B2C | Transformation | CRM | Travel & Tourism | Lesuire & Entertainment | Real Estate | VP, SVP, GM | Digital Commerce | Customer Loyalty | Growth & Innovation
Your right, the issue goes beyond just aggregators, everyone needs to work better together - landlords, aggregators & businesses. Each tenant is working with there landlord on waiving months of rent or finding an alternative solution. Aggregators and restaurants can co-exist. Restaurants like working with them - they are not angry. There is value for both. There definitely needs to be a balance. Their partners have been asking to work with them to find a solution but they ignored their partners. It's a problem and disappointing. Nicolas Budzynski the Careem announcement was exciting until I looked further into this. Their comms team need to be very clear in the message. Merchants are still confused - they don't know if the new commission is now (a) 10% a flat reduction or if the math is 15% off 25% = (b) 21.25%. (a) In the case of 25% - 15% = 10% commission on a AED100 meal CareemNOW would receive AED10 or (b) In the case of 15% of 25% = 21.25% on a AED100 meal CareemNOW would take AED 21.25 If (a) is the answer then this is a BIG move and all merchants will be the first to champion this. If it is (b), I am being sincere – it's misleading and this isn't a good news story.