This pandemic has surely taught us a lot of things. One of the facilities that certainly made its importance felt was online food delivery service. Platforms like Doordash have ensured that we eat fresh and tasty food from the safety of our home without stepping out and putting our health at risk. Moreover, users could enjoy Doordash coupons that provided a minimum of $5 discount on your next 5 orders!
This article will shed light on the impact of the pandemic on online food services and how much the brands have grown or shrunk in size over this period.
Decreased revenue of food delivery apps
During the pandemic, the online food delivery services were one of the few organizations that had to increase their workforce due to growth in demand and lesser staff members. However, since other services like departmental stores, groceries, etc. had to shut down temporarily, food delivery apps also doubled up as grocery delivery services in countries like India, Bangladesh, Myanmar, Thailand, etc. This offered additional credibility and features for people who were skeptical about eating home-delivered food and liked cooking on their own. This gave tad-bit support to sloppy revenue of food delivery apps and a lot of them have stopped providing grocery services.
Lesser obstinacy from paying high delivery fees
Customers often had issues with food delivery apps regarding their high delivery fees and this brought a bad reputation to the brand. Moreover, countries with greater pay gaps experienced more disputes regarding high delivery fees. However, during pandemic people had no other option but to give in to high delivery fees else they would have to go by themselves. Companies like Uber Eats have reported that they had to nearly double their delivery charges in leading cities for food delivery but they observed a meager 7% decline in regular growth of daily orders during pandemic.
Delivery personnel are accepting lesser than normal wages
The pandemic has rendered a lot of people jobless and this has made people grab every job offer that they are coming across. One of them is the delivery jobs at food delivery companies. Moreover, due to the high loss of food delivery companies during the pandemic, they have reduced the commission of riders for every delivery and their minimum wage. However, this hasn’t affected the greater influx of people joining delivery jobs due to lack of opportunities. Grubhub and Doordash have reported a growth of over 47% in new additions to the company as delivery personnel.
Smaller restaurants have to increase their prices to fight the rising platform fees
Brands like Postmates, Grubhub, Uber Eats, etc. had to increase the fees required for using their platform. While brands like Subway, Dominos, Pizza Hut, KFC, Papa John’s, etc. had the capability to negotiate higher platform fees because of their brand value and daily orders, smaller food joints lacked the capability and had to pay higher than normal charges. This caused an increment in food prices and places that were known for their reasonably priced food, have become costlier and lost their market share to the bigger players in the market.
Lack of options for customers
This is a follow-up impact of the previous effects as the restaurants that lost their business due to pandemic found it extremely difficult to run their business without substantial profits. Therefore, they had to close down eventually and customers are left with fewer than ever choices for their food. USA states like Texas, Illinois, etc. have reported the closure of more than 15,000 food joints during the period of lockdown and they haven’t opened since the lockdown restrictions have been eased.
Growing cooperation among food delivery services and restaurants
Pandemic has increased operating costs in all industries. However, a lot of food delivery services and restaurants have started cooperating together. Doordash has recently confessed that it has avoided taking commission fees worth $100 million in the USA and Canada that has allowed several food joints to stay afloat during the corona pandemic. This has saved a lot of businesses and customers from losing their source of income and favorite place of getting food. Grubhub has also reported that it has spent more than $100 million on lending a helping hand to restaurants, delivery people, managerial staff and other frontline workers which has improved the brand recognition among people.
Leader in the online business industry
Food delivery services have emerged as the largest part of the online business industry according to the recent evaluation which has made it a $27 Billion industry. In this industry, brands like Uber Eats, Doordash, Grubhub, Postmates, etc. are leading the front aggressively with their competitive prices, discount offers, and promotional strategies to keep people safe inside their home while they are taking all the pains to deliver hot and fresh food right at their doorstep. Various food delivery apps in countries like India, Bangladesh, Pakistan, UAE, etc. are offering grocery and essential supplies alongside normal food delivery as a part of their social responsibility campaign and this has opened up a new avenue of business for small-scale food joints and departmental stores.
Use of coupons and discount offers
In order to lure customers into buying more food so as to increase the net profit, brands are providing amazing discount offers and coupons for leading food joints and restaurants. Customers have to find appropriate coupon codes for their desired food joints and apply them before checkout and that will be it. Websites like Zouton, Couponhp, etc. offer amazing discounts for leading food delivery apps like Doordash, Grubhub, etc. which must be checked out.
Food delivery services have made our lives a bit easier throughout the pandemic and they are keeping up with the streak. Brands like Doordash are offering quality and safe food at affordable prices for you to check out with the help of appropriate Doordash coupons and related discount offers. Head over to coupon aggregator websites that carry discount and promo codes for all your favorite brands with utmost accuracy!
Image Source: BigStockPhoto.com (Licensed)
Related Categories: Food, Reviews, Tech