COVID-19: Deliveroo, DoorDash, Uber and Just Eat to save F&B
As government officials tell citizens to avoid public spaces amidst the Coronavirus outbreak, do food delivery services have a greater role to play?
As shops are emptying across the world in the wake of the COVID-19 pandemic, and many restaurants are on the brink of collapse, food delivery apps are providing a lifeline to businesses and consumers alike.
In the UK, Deliveroo has announced that it will offer no-contact deliveries. This option, available via its app, allows customers the option to have the company’s riders knock on the door, and leave goods on the doorstep with the rider standing at a distance recommended by health officials. This service is applicable both ways, and riders have the choice to also choose a contactless delivery.
“This is a worrying time for everyone, and we want to acknowledge the incredible efforts of all our riders who are working hard at this time and who are committed to helping the communities in which they work,” said a Deliveroo spokesperson.
This development follows on from a similar announcement made by fellow British food app, Just Eat, who has also launched the same service. Deliveroo will be rolling out this service internationally. In Hong Kong, 20 malls have joined Deliveroo's programme to rescue the plunge in food and beverage sales. Deliveroo expects this to generate US$2.6mn in incremental online sales, benefitting 300 restaurants.
In the US, delivery company DoorDash has not only matched these efforts by launching contactless options that automatically apply at check out, but it has waived delivery fees through April. Existing partners will not be charged commission fees, and the company will seek to provide commission reductions where possible.
DoorDash confirmed: “This is not a deferral of fees, nor will merchants be asked to pay anything back.” It has also promised that it will provide free hand sanitiser and gloves to its delivery workers, but this is yet to be rolled out nationwide until the end of next week, according to Business Insider.
DoorDash is also leading the way as it partners with United Way Worldwide in order to deliver groceries and prepared food to seniors and low-income families, as well as mobility-impared individuals in the US. It currently has 100,000 restaurants signed on, a number that is sure to increase in the coming weeks.
In Australia, a petition has been circulating, calling for Uber Eats and other food delivery services to cut down on its 35% commission in a bid to help restaurants during this challenging time. “With Australians increasingly staying at home instead of eating out because of coronavirus fears, these small food businesses are going broke,” Fordham wrote on the petition.
Uber Eats has started to make changes in the US. Janelle Sallenave, the head of Uber Eats for the US and Canada, said: "As more customers are choosing to stay indoors, we’ve waived the Delivery Fee for the more than 100,000 independent restaurants across US & Canada on Uber Eats. We will also launch daily dedicated, targeted marketing campaigns—both in-app and via email—to promote delivery from local restaurants, especially those that are new to the app."
Though representatives from Deliveroo and Just Eat have yet to confirm an increase in sales, a number of companies are signing up to the delivery services for the first time in a hope to prevent further losses as the virus reaches its peak across the world.
[images: Getty and Deliveroo]
For more information on all topics for FinTech, please take a look at the latest edition of FinTech magazine.
Tink partners with Novalnet AG for open banking payments
The Munich-based fintech Novalnet AG, which was founded in 2007 and is one of Europe’s leadingfintech companies, has announced a new partnership with Tink, the Swedish open banking platform currently connected to more than 3,400 European banks.
Novalnet AG delivers payment solutions and fully automated services, from checkout to debt collection. Its solutions are also available worldwide.
According to reports, the fintech company plans to launch a real-time payments feature for merchants across Europe, to expand its current services and enhance the transaction experience it operates through its platform.
The new feature, says Novalnet, will revolutionise payments for ecommerce with transactions being credited to merchant’s accounts almost instantly.
Novalnet partnership with Tink
By partnering with Tink for payment initiation services (PIS) technology, Novalnet will take previous region-specific payment methods and offer a new unified digital payments service to its merchants across Europe.
The fintech’s real-time merchant payments feature, which will be launched initially in Germany and the United Kingdom, will then be integrated across other European markets during 2021.
Speaking about the new collaboration, Emmanuel Kirse, COO of Novalnet, explained, "We expect great things from our strategic partnership with Tink, which is a significant development for both parties.
“With Tink, Novalnet can offer a new set of open banking-related solutions in Europe. The new opportunities offered by this partnership will help both Tink and Novalnet grow together, along with our merchants."
Cyrosch Kalateh, Regional Director for the DACH region at Tink said, “Our partnership with Novalnet is a big step for Tink in the German market, and we are excited to work together to bring new, innovative payments services to merchants across Europe.”
He added, “At the end of 2020 Tink committed to expanding its payment initiation services from five to 10 markets, fuelled by an €85mn investment round. We are proud to add Germany to this list by announcing we have now fully launched Tink’s PIS services in this market.”
Image credit: Novalnet AG