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New apps emerge amid COVID-19 to tackle gripes with popular delivery services

Instead of relying on Uber Eats, SkipTheDishes or DoorDash, restaurants are turning to new options
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(The Canadian Press)

When the weekend rolls around, Torontonians wonB次元官网网址檛 have to miss the White Lily DinerB次元官网网址檚 thick-cut bacon, organic corn grits and toast smeared in rhubarb hibiscus jam just because the country has plunged into a pandemic.

The east-end diner is selling its brunch staples and offering to drop them at customersB次元官网网址 doors, but the process wonB次元官网网址檛 involve any of the familiar delivery apps whose couriers have become a fixture on busy streets in recent years.

Instead of relying on Uber Eats, SkipTheDishes or DoorDash, White Lily is using a new entrant to the market: Tock To Go.

B次元官网网址淭he biggest draw off the bat was probably just the fact that theyB次元官网网址檙e so much less expensive,B次元官网网址 said White Lily co-owner Ashley Lloyd, who laid off her entire staff when she closed the restaurant to dine-in meals amid COVID-19.

B次元官网网址淩estaurant margins are slimB次元官网网址 can understand people turning to (their delivery competitors), but honestly I donB次元官网网址檛 know how they do it.B次元官网网址

Tock To Go is part of a new wave of food delivery companies hitting the Canadian market, hoping to attract vendors with features like lower commissions and fill the hole Foodora will leave behind when it shutters its Canadian operations in mid-May.

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The services B次元官网网址 OttawaB次元官网网址檚 Love Local Delivery, VancouverB次元官网网址檚 From To, TorontoB次元官网网址檚 volunteer-run iRover and new delivery features on MontrealB次元官网网址檚 Eva B次元官网网址 have been created to help out in a tough moment, when restaurants are barely scraping by B次元官网网址 even as demand for food delivery surges.

These services want to do things differently from the household names, so they have eliminated commission fees or offered rates well below the 10- to 30-per cent charged by Uber Eats, SkipTheDishes, DoorDash and others.

Tock To Go, a Chicago-based service from restaurateur Nick Kokonas that evolved from his Tock reservation system, only takes a 3 per cent commission from restaurants in Vancouver and Toronto.

Tock first appeared in the cities in 2018, but didnB次元官网网址檛 launch Tock to Go until the pandemic started. Tock to Go doesnB次元官网网址檛 have couriers to deliver meals. Instead, it asks customers to pre-order food, helping restaurants arrange their own delivery.

B次元官网网址淥rdering apps take up to 20 to 30 (per cent), which simply is not sustainable for restaurants,B次元官网网址 TockB次元官网网址檚 director of marketing Kyle Welter said in an email.

B次元官网网址淭ock allows each restaurant to specify the number of orders for any set time range, so the kitchen doesnB次元官网网址檛 get overwhelmed and they can responsibly manage the flow of customers.B次元官网网址

Over in B.C., Brandon Grossutti from Gastown restaurant Pidgin will launch From To, a delivery service with a handful of Vancouver eateries, in May.

In the weeks before restaurants in Canada closed to stop the spread of COVID-19, Grossutti realized Pidgin would need a takeout option, so he signed up with Uber Eats and Burnaby-based Fantuan Delivery.

B次元官网网址淭hen the reality of it hit. We did fairly well gross wise, but you see the checks coming in andB次元官网网址he first week was a lot of money out the door in commissions,B次元官网网址 said Grossutti, who had to lay off workers

B次元官网网址淚tB次元官网网址檚 a weirdly parasitic relationship where you have a parasite basically eating its hosts until it dies and itB次元官网网址檚 not a sustainable relationship.B次元官网网址

Grossutti decided to put his software industry background to work. He made From To, which gives restaurants the ability to decide if they want to pay for, split with or pass on customersB次元官网网址 delivery costs.

From To currently takes no commission.

B次元官网网址淲e had talked at certain points about taking like 5 per cent, which would be much less than whatB次元官网网址檚 out there, but we realized that during this time we need to make this sustainable because people are already losing money,B次元官网网址 Grossutti said.

The lower commissions donB次元官网网址檛 seem to have bothered rivals.

B次元官网网址淲e welcome new competitors to the market, as it raises awareness of the industry and promotes even more traffic to restaurants to stimulate growth,B次元官网网址 Winnipeg-bred SkipTheDishes said in an email to The Canadian Press.

B次元官网网址淚t is natural for competitors to see value in this market and weB次元官网网址檙e confident in SkipB次元官网网址檚 position as CanadaB次元官网网址檚 homegrown food delivery company.B次元官网网址

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SkipTheDishes is offering a 10.5 per cent commission deal to restaurants wanting to do their own deliveries but still use the platform and is expediting payments to all businesses using its services.

Meanwhile, San Francisco-based Uber Eats is eliminating its fees on pickup orders and reducing its usual 30 per cent charges to 15 per cent for restaurants who choose to use their own delivery people.

DoorDash, also headquartered in San Francisco, is waiving April commission fees for new, independent clients. Existing independent clients can have those fees waived on pickup orders, and 100,000 clients were added to DashPass B次元官网网址 its subscription program which offers $0 delivery for consumers B次元官网网址 for free.

Harriet Clunie, the executive chef at European-style bistro Das Lokal, said that is not enough because the moves put the onus on restaurateurs to offset costs or hire their own delivery staff to take advantage of benefits.

She banded together with other members of the Ottawa restaurant community to found Love Local Delivery, a service that launched in March and will courier food within 5 kilometres of restaurants for a flat $5 fee, or more for longer distances.

There are no commission fees right now and the service focuses solely on independently-owned restaurants.

While it might have to charge commission when it launches an app in the near future, Clunie said the service is committed to keeping that potential fee low.

B次元官网网址淚tB次元官网网址檚 all people that are in the same boat and weB次元官网网址檙e trying to help everybody thatB次元官网网址檚 struggling, restaurants or small businesses or drivers that are unemployed and just trying to make some money to feed the family,B次元官网网址 she said.

B次元官网网址淚tB次元官网网址檚 an approach thatB次元官网网址檚 really trying to lift everybody up.B次元官网网址

Tara Deschamps, The Canadian Press


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