How hungry tech giants leave starving businesses.
We’re living in the age of convenience. Everything we could ever want is in the palm of our hands. Groceries, goodies, movies are no longer around the corner; all of these are available with a simple Wi-Fi connection and opposable thumbs.
Over the last few years, on-demand food delivery apps have skyrocketed in popularity and growth, which is great for a society with an increasing appetite to have everything in the snap (or, in this case, the tap) of a finger. According to Dalhousie University’s Agri-Food Analytics Lab (AAL), in 2019 alone, Canadians ordered close to $1.5 billion worth of meals through food delivery apps. Of course, when the 2020 global pandemic hit us in the face harder than an open palm upon realizing one could have consumed a famous tomato-based beverage, on-demand food delivery has only continued to grow. And grow. And grow…
But what do these food-delivery apps mean for smaller, local restaurants, who need to continue meeting the demand of their customers, but might not have the same capital as larger chains to stay afloat while turning some sort of profit? When we think about the cost of convenience, there are multiple people paying the price.
Let’s look at how hidden fees and commission rates affect everyone involved:
- Commission rates for restaurants:
The big fish in the on-demand food delivery app pond can take up to 20% – 35% in commission from restaurants on every order, meaning business owners face immense difficulty trying to reach a profit margin sustainable enough to keep the lights on every day.
- Surprise fees for customers:
We’ve been on the receiving end of surprise fees greeting us at the checkout door like an unwanted party guest. The truth is, with many popular delivery apps, hidden fees can increase the total cost of an order from anywhere between $10 – $20. Service fees, convenience fees, delivery fees, not to mention taxes on top of it all; these things add up and end up taking more out of a customer’s wallet than they had originally anticipated.
- The cost of incentives:
How great is it when your favourite app sends you a notification to let you know that you’ll get $10 off your next order? The truth is, not so great, depending on who you ask. These incentives may seem great on the surface, but they really only benefit the customer. That’s because restaurants are the ones who need to cover that cost or delivery fee, not the app. Of course, this ultimately results in even more lost revenue for the local business.
Why Getit Local is an absolute #gamechanger.
Getit Local was specifically designed to disrupt the common way of things in the app-based food delivery industry because we think that fair is fair, and now, more than ever, local restaurants and businesses need support.
With Getit Local, restaurants only pay a flat monthly fee, rather than commission fees on each individual order. As a result, this keeps more money in the pockets of the restaurant so that they can protect their margins and improve their bottom line.
For customers, gone are the days of the surprise fees at checkout. Through Getit Local, customers now only pay a flat, transparent and affordable fee of $5 on each and every order. That’s it.
Before we wrap up this article tighter than a shawarma sandwich, we can’t forget about those who make it all possible – the drivers. With Getit Local, drivers get to keep 100% of their tips, while earning a fair, healthy wage so that they can finally get paid what they deserve.
At Getit Local, we don’t just say, “Everyone wins when you Getit Local” to sound cute; we really mean it!
Interested in partnering with us? We’d love to have your restaurant featured on our app. Contact us today.