Backlash over food delivery apps profiting during crisis

Since the mayor of San Francisco, London Breed, pushed through an emergency order that temporarily capped delivery app commissions at 15 per cent, restaurateurs on both sides of the Pacific have been elated.

Few issues have raised the ire of restaurant owners and consumers in Australia in recent weeks as delivery services profiting from businesses that have adopted a take-out and home-delivery model out of necessity. The commission charged by some delivery services is so high that restaurants say they don't make any money.

The backlash includes a petition by 2GB broadcaster Ben Fordham calling for food delivery services to cut their commissions during the COVID-19 pandemic. It has attracted more than 55,000 signatures.

Food publications globally have been pushing for customers to delete their food delivery apps.

Sydney restaurants have also tried to fight back. Newtown's Rising Sun Workshop has mobilised staff as a motorised food delivery cavalry.

Restaurants are clearly better off if you pick up the phone and collect an order yourself, where possible.

Peter Lew, owner of Fei Jai restaurant in Potts Point, is among the Sydney restaurants to switch to takeaway in recent weeks.

Lew, a chartered accountant earlier in his career, recommends shopping around. He crunched the numbers on the different delivery options.

"One was 35 per cent. Add GST and how can a restaurant give away nearly 40 per cent and make any money? I settled on an app at 25 per cent, which I accept through gritted teeth. Plus, I have my own guy on a bike."

As a city, we could do worse than follow San Francisco's lead.