Coronavirus: Food delivery services on offer under Covid-19 level 3 lockdown

Wednesday, 22 April 2020

Prime Minister Jacinda Ardern has encouraged Kiwis to eat local and use restaurants that do their own deliveries under alert level 3.

Uber Eats' competitors are dropping their fees as restaurants prepare for contactless delivery under alert level 3.

On Wednesday, Prime Minister Jacinda Ardern encouraged people to use restaurants that did their own deliveries under level 3, instead of using Uber Eats as the company continued to charge high commission rates.

Restaurant Association's Marisa Bidois said Uber Eats was 'essentially taking the shirt off the industry's back'.

But Bidois said local businesses including rental car providers were changing their model to support the hospitality industry by offering food delivery at lower commission rates.

Menulog will offer deliveries from next week and charge a commission of 7 per cent.

Uber Eats charges a 35 per cent commission, much higher than smaller rivals.

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The Ministry of Business, Innovation and Employment says under level 3, businesses will be able to offer contactless deliveries, but must have a Covid-19 safety plan.

Uber Eats has about 2000 restaurants on its platform, while its biggest competitor Menulog has about 800.

Menulog's managing director Morten Belling said its commission halved to 7 per cent in recognition of the challenging times restaurants faced.

Another food delivery service, Eat Local NZ, which was set up by Tim McLeod in response to the lockdown, charged 5 per cent commission for delivery and meal pick ups.

Eat Local Food was set up in response to the lockdown and already has about a dozen restaurants on its platform.

Restaurants would have to use their own staff to deliver while the company worked to hire 4500 drivers, Eat Local NZ said on its website.

McLeod said Uber Eats' commission rate was 'shocking' and started Eat Local NZ after 'feeling guilty' about using the American giant.

'When Covid hit I was walking my local streets past closed venue after closed venue, thinking how can they survive if their best option is a platform charging 35 per cent,' McLeod said.

KFC will open contactless drive-through from next week offering a smaller menu.

'It's more important now than ever to support your local cafes.'

Car rental companies are also offering cars and drivers for delivery services.

Europcar offered a car and driver for either four or eight hours a day for $32.

While Rad Car Hire West Auckland was offering restaurants cars for $29 a day on a weekly basis for self-delivery.

Snap Rentals started its food delivery service in the first week of the lockdown for high-end grocery chain Farro Fresh in Auckland.

Snap Delivery costs $29 for delivery on the same day and $19 for the next day.

The fast food chains will also be delivering food from next week.

Domino's general manager Cameron Toomey said all its stores would open next week for contactless deliveries.

Toomey said safety was a top priority and the pizza chain was employing increased hygiene procedures and physical distancing.

Earlier this month Domino's said it was looking to hire 1000 staff, including drivers.

Restaurant Brands, the owner of KFC, Carl's Jr, Pizza Hut will also offer contactless delivery online and phase in a drive-through option.

Restaurant Brands chief executive Russel Creedy said the easing to level 3 meant drive-through at KFC and Carl's Jr stores.

For Pizza Hut, only contactless delivery would be available at level 3, he said.

'We have set up individual work zones for each staff member to ensure a safe distance is maintained.'

KFC has reduced its menu to limit the number of people required in its kitchens.

Taco Bell will not be reopening in level 3.

Hell Pizza chief executive Ben Cumming said all 76 stores were opening next week for contactless delivery and was working through its safety protocols with staff this week.

Some businesses had already started preparations for level 2.

Restaurant finder Zomato and Extraorder were offering contactless dining, where customers can order and pay through the apps, without the need to queue to pay.

Extraorder Asia Pacific sales manager Andrew McClurg said the company would charge 2 per cent commission and would be available in Auckland, Wellington, Wanaka, Queenstown and Christchurch.