COVID-19 counter: UAE F&B businesses to launch own food order-delivery app

Dubai: More than 100 small and mid-sized F&B outlets in Dubai are coming together to launch their own order booking and delivery app and take on Zomato, Talabat, Uber Eats and others. The app could be ready to roll in three months.

Orders made through the app will also have no servicing fee imposed on the consumer.

The decision to launch follows the break down in talks between these F&B outlets and “food aggregators” – the online portals that take in orders and even deliver them – on the issue of the commissions they charge restaurants. These fees can make up to 35 per cent of an order (if delivery is included as well), and with the discounts and other costs added, there is little left for F&B owners to survive on.

Businesses say that such high commissions can only be justified when they had their restaurants and cafes running at full capacity.

Their situation has turned dire after the one-month long restrictions on commercial and social activity. Now, even with the restrictions rolled back gradually, there are still clear limits on the number of patrons F&B outlets can serve at any one point. (It should not exceed 30 per cent and there should be safe distances between tables and seating arrangements.)

“Most aggregators have outright rejected our request for commission reductions,” said Shanavas Mohammed of the Golden Fork chain. “Some only offered partial deferment of commissions – and right now, that’s not much.

“More than ever, the restaurant community in the UAE feels our interests are not best served by food aggregators. This app service will be owned and operated by the restaurant owners.”

F&B 2
Partial openings… Some F&B operators continue to shutter some of their operations as the cost-to-revenue mix remains fraught.
Image Credit: Gulf News Archive
What F&B operators want
The demand has been for all aggregators to cap their commissions at 15 per cent of the total sale price because “they are also charging customers for delivery,” according to one business owner.

Leave a Reply

Your email address will not be published. Required fields are marked *