The second wave of Covid-19 and the dominance of third-party food delivery platforms

Covid-19 has completely shifted the way we live and work, yet those who have benefited from this pandemic the most has consistently been the already dominant aggregators. In the food industry this refers to third-party food delivery apps charging extortionate commission rates.

Living with coronavirus

From the surge in the amount of people working from home, to the mandatory use of masks in almost all public places and the stark increase in online orders, coronavirus has severely reshaped the way we live.

Restaurants or businesses which did not previously offer delivery services, adapted to the market during the first wave and began to offer alternative delivery or pickup methods in order to keep their businesses afloat.

The second wave

Despite coronavirus entrenching our lives for almost one year, at this moment in time it appears as if the pandemic is far from over. As a result, most European countries are continuing to tighten restrictions in response to the second wave of the pandemic.

Last week, the Portuguese government announced the mandatory use of facemasks for when social distancing is not possible, including outdoor public spaces. Public gatherings of over 5 people including groups in restaurants and cafes were likewise prohibited. Meanwhile Spain recently announced a nationwide curfew and last week Ireland became the first country to reimpose a national lockdown

What’s the impact?

This second wave of Covid-19 will no doubt continue to impact our lives with more restrictions, including the increasing likelihood of futher lockdowns and the sustained growth of online deliveries.

Overall the pandemic has continued to benefit the largest aggregators. During the first wave of the pandemic, Jeff Bezos saw his wealth rise by an estimated $48 billion from Amazon and the founder of the video platform Zoom grew his wealth by over $2.5billion.

Within the food delivery market, Uber Eats’ revenue grew 113% to roughly $1.2 billion and the large third-party food delivery apps have continued to come out on top. In response to their dominance, some states in the United States including New York, Seattle and Washington D.C opted to cap commission fees of these food delivery apps which previously reached as high as 35% commission.

Although in some places shops and restaurants are still open, staying at home has become the best way for people to protect themselves from the invisible enemy. Therefore as the second wave commences, the consumer shift to digital food platforms will continue to accelerate.

What can be done?

In order to avoid continuing to help the largest aggregators grow and instead support smaller independent restaurants for food deliveries, consumers can order directly through eStart4. The new online ordering e-platform which charges restaurants and businesses 0% commission fees.

You can continue to fulfil all of your delivery needs, stay at home and support your local community. So as this winter creeps in and restrictions continue to tighten, you can be certain your takeout choices are benefiting those who really need it most.