Deliveroo offers commission discount to restaurants in Hong Kong amidst coronavirus outbreak
It will be effective starting 16 February.
Deliveroo announced a 5% commission rate reduction for all eligible restaurant partners in Hong Kong as the coronavirus continues to impact businesses.
The move means that eligible restaurant partners can enjoy a 15-20% discount in commission fees. The initiative will be effective on 16 February for a month.
The company also launched a four-week payment delay scheme available for qualifying exclusive restaurant partners, aiming to ease cash flow.
“In our most recent survey and conversations with leaders of the F&B industry, we estimate in-store F&B retail sales to be down 30-50% year-on-year, with signs of further deterioration. Operators are reeling from worsening consumer spending out-of-home. We expect economic conditions to deteriorate. Having spoken to so many restaurants, we understand their concerns and wanted to take action to help,” Brian Lo, General Manager of Deliveroo Hong Kong and Board Director of the HK Federation of Restaurants and Related Trades (HKFORT), said in a media release.
Deliveroo said it saw a “dramatic acceleration” of restaurants looking to suspend or close operations, with the benchmark numbers rising from an average of 1.5% to 5% over the last 4 weeks.
As large portions of Hong Kong continue to work from home, Deliveroo reported an increase in delivery orders recently following the Chinese New Year holiday weekend. The food delivery platform said it has seen an 60% increase in order volume month-on-month in January, with the pace of volume growth accelerating over the past two weeks since February.
The highest growth in Deliveroo orders for the past two weeks came from New Territories districts, including Tin Shui Wai and Fanling.
Other New Territories districts including Tuen Mun, Tsuen Wan, Tai Po and Tseung Kwan O recorded jumps of more than 60%. Whilst in the Kowloon districts, Mong Kok, San Po Kong and Sham Shui Po have recorded an 80% jump in order volume over the past two weeks.
Meanwhile, the residentially-located Deliveroo Food Market in Sai Ying Pun recorded a rise of over 70% in order volume over the last two weeks.