Deliveroo cuts Pickup commission rate

Food delivery service Deliveroo is reducing its Pickup service commissions to 5 percent for its operations in Hong Kong.

The move is expected to provide relief to restaurants struggling to generate revenue during the coronavirus outbreak with tough social distancing regulations in place throughout the territory.

The new rate will apply to all Deliveroo partnering restaurants through to the end of June who accepts orders through the Deliveroo platform from customers who opt to collect their food directly from the restaurant.

“At Deliveroo we know that every customer can make a world of difference to our restaurant partners at this critical time, and so we have consistently rolled out new measures to continue our support,” said Deliveroo Hong Kong GM Brian Lo.

“Pickup offers a faster option for customers to order their food through Deliveroo in times of high demand, and also allows for people to order for collection from restaurants that may not provide delivery services or order products that may not be suitable for delivery. The service also benefits restaurants by opening up an additional revenue stream as Pickup gives people the option of ordering food-on-the-go – enabling restaurants to reach a new wave of customers.”

Some 60–70 percent of the 1500 restaurants joining Deliveroo since January have opted into Deliveroo’s Pickup service. Deliveroo has seen 300-per-cent growth in both restaurants offering Pickup services and Pickup’s order volume during the first quarter.

“It’s no surprise that the most recent measures by the government to reduce in-house restaurant services by 50 percent have been felt across the city and to our operations,” said Deliveroo restaurant partner Ootoya’s GM Hiroyasu Kageyama.

“However, we’ve been able to make up for lost in-house sales with more proactive marketing for delivery and pick-up. This is largely in thanks to Deliveroo’s compassionate efforts to help us adapt and reach new customers online – with them as our partner, we’ve been able to stay optimistic and find new ways to innovate.”

Pickup services from Deliveroo officially launched earlier this month to give hungry Hongkongers the chance to skip the delivery fee, and conveniently pick up their meals without standing in line at their desired restaurants. Once customers have selected the Pickup option, they will be shown the precise collection time and be kept up to date through app notifications, enabling them to drop in and grab their food immediately.