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The Prime Minister has encouraged kiwis to eat local and use restaurants that make their own deliveries under Alert Level 3.
Restaurants are asking the government to step in, as Uber Eats charges a commission of around 30 to 35 percent for most purchases, considerably more than many other delivery services.
Because in-store purchases would not yet be allowed at Level 3, the New Zealand Restaurant Association said companies would be overly reliant on third-party delivery apps and would work to reduce margins.
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Uber Eats charges a 35 percent commission, much higher than similar services.
“Uber Eats essentially takes the shirt off the industry,” said the association’s executive director, Marisa Bidois. “These are the three most difficult months this industry has ever faced, and we are likely to see a closing rate of one in five.”
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She wrote to Finance Minister Grant Robertson and other ministers asking for a limit to be placed on the amount of commission an application can charge.
But in her daily press conference, Jacinda Ardern said it was up to consumers to choose restaurants that didn’t use Uber Eats.
When asked if the government would consider putting a limit on how much Uber Eats can charge restaurants, Ardern said:
“I would simply recommend to consumers, to all New Zealanders eager to access takeaways next week … to look at their favorite local restaurant, and I encourage them to support local businesses, and just watch if they offer they deliver it directly themselves. “
Ardern said he understood that high levels of commission “had been Uber’s business model and continue to be his model.”
Jacinda Ardern encourages New Zealanders to eat restaurants from places that make their own delivery next week.
In comparison, top local competitor Delivereasy charges a 20 percent commission.
In a statement to Stuff, an Uber spokesperson said the company had no intention of changing its commissions.
“We understand that this is an incredibly difficult time for the restaurant industry and particularly for small business owners. Our goal right now is to help restaurants stay open for business for as long as possible and continue to capture demand. from customers through pickup and delivery, “he said.
The company had issued a support package, which included $ 5 million in funds for Australian and New Zealand companies to conduct promotions, and a 50 percent discount on the activation fee for new companies that register.
Menulog, which processes orders online but requires restaurants to arrange their own delivery, announced this week that it would cut its commission from 14 to 7 percent through June.
“Menulog is showing a great example. It is these kinds of gestures that help build the industry,” he said.
While restaurants have the option of using other, cheaper services, Bidois said it was important to push UberEats as it was the market leader.
The association has been pressuring Uber Eats to drop its commission charges since it launched in New Zealand, but said the Covid-19 situation had changed things, because restaurants were now completely dependent on delivery, rather than be a complement in-sale stores.
Uber Eats and other delivery platforms cannot operate on Covid-19 Alert Level 4, but will return to Level 3 with contactless delivery.
