Deliveroo has offered support for its Hong Kong restaurant partners as many of them are suffering from falling dine-in sales due to the coronavirus crisis.
The company will reduce its commission rate for restaurant partners by 5 per cent for a month, starting February 16, equivalent to a 15-20 per cent discount in fees.
In addition, the company will also offer a four-week payment delay strategy for its exclusive restaurant partners to ease their cash flow, the company said in a statement.
“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 per cent year on year, with signs of further deterioration,” said Brian Lo, GM at Deliveroo Hong Kong.
The company has urged its rivals in the food-delivery sector to provide support where they can.
With approximately 6000 restaurant partners, Deliveroo has witnessed a significant escalation in the number of restaurants aiming to suspend trading or shut down. Its research suggest as many as one in 20 restaurants is considering closure.
“As a stakeholder in the F&B industry and the leading food-delivery platform in the market, we want to play a part, however small, in supporting our restaurant partners and lend a helping hand to the industry in this time of need,” said Lo.