Food Delivery Apps Help Save Thousands of Restaurant Jobs


This year there have been millions of people who have lost jobs around the world. Thousands of small businesses have been forced to close. The restaurant industry lost millions of jobs this year and left many struggling and wondering what to do next.

But thanks to technology and the innovation with delivery apps, restaurants had a solution to turn to and it has helped to save thousands of jobs from the U.S. to the UK and elsewhere.

With apps like Uber Eats, Door Dash, Grubhub, and other competitors that are already out there it has meant that thousands of restaurants were still able to do business and keep those workers employed.

These apps are pushing the industry into a multi-billion industry and have been growing significantly this year as more people look to stay home and order delivery this way. Millions are now using these delivery-apps on a regular basis to bring them everything from seafood and burgers to pizza, alcohol, and basic groceries.

Restaurants are making more money from food served outside than inside in 2020.

The money they make from these deliveries is more than they are making from sales on those eating inside the restaurant. And now that so many are used to ordering food this way, just like now with their grocery orders, they might continue with this trend because it has worked so well for them.

It is working for the restaurants too, even though they have complained about the percentage of profit that these apps take from them in the past. Still, it looks like a win-win situation altogether by helping restaurants stay busy, keeping jobs for thousands, and bringing the goods to the people who need them still. It's a great benefit to millions that these apps were available on the market already this year and that they were ready to be used when that need came about with COVID-19, with millions on lockdown.

With so many in the restaurant industry this year that have lost their jobs, it is apps like DoorDash and others that are helping tremendously to keep what jobs they can in the market. These days they seem relatively essential for restaurants to be able to thrive.

Commission Limits

To try and address the problem of high fees that these apps charge for restaurants to use, in order to connect with the end consumer, some jurisdictions have passed commission limits as far as how much the app might be able to charge for that delivery order.

Sometimes it might be 15 percent or more that they take and for restaurants that already work with very thin margins this isn't sustainable.

Various restaurants have already boycotted these apps because of those disagreements over high fees. Now, in areas like Seattle, D.C., and New York, limits have been passed so that third-party delivery companies cannot take more than 15 percent commission on the order.

Regardless of the difficulty, some restaurant owners admit that without those apps helping to make deliveries and boost sales that it might mean an almost certain death for a restaurant nowadays. Without these apps it also likely would have meant the end of thousands of other restaurants and more jobs lost this year.

Pics:
pixabay



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Markets shift according to demand. Artificial demand can have long term effects on the public.

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