Square’s new delivery service promises restaurants lower commissions for delivery apps

Recent restrictions across Canada due to the ongoing spread of COVID-19 have led a lot of food establishments to rethink how they reach out to customers.

While food delivery apps, like Skip The Dishes, Uber, and dozens of others are options, it can often be hard on restaurant owners with the high commission fees that have to be paid.

In some instances, restaurants have to pay commission fees as high as 30 percent on every order. For example, if a restaurant makes a sale worth $45, they’ll have to pay the delivery app upwards of $13.50 for that sale.

According to Deliverect, a company that works to connect restaurants with their customers, the fee for Skip The Dishes is typically between 20 and 30 percent. Tony Elenis, the president of the Ontario Restaurant Hotel and Motel Association, told CTV News last year Uber Eats has a 30 percent commission rate.

MobileSyrup asked Skip The Dishes and Uber Eats to confirm these figures but did not receive a response ahead of publication. A spokesperson from DoorDash also didn’t provide a specific commission rate but said commissions are “personalized for each merchant.”

“What we’re trying to do is put the tools in the hands of our sellers to create that so they can really own the ordering relationship.”

While these rates have fluctuated in the past two years, whether that be from governments capping rates or companies taking initiatives themselves, commissions have always existed. In some instances, they act as a barrier for restaurants to join food delivery apps.

Square is hoping to change the way this works. The software company has launched a new on-demand delivery service that it says is commission-free.

Restaurants, bars, convenience stores, and any establishment using Square across Canada can now have their goods delivered to patrons through DoorDash Drive. This is separate from the DoorDash app and focuses on delivering orders placed on a third-party website or app.

The customer has to place an order directly on the store’s website. Text updates and a link to a map tracking the order are sent to the customer. The seller will pay $1.50 for every order to Square. An $8.50 delivery fee will also be paid to DoorDash. The seller has the option to pass these off to the customers to pay in full or offer custom options, such as paying for delivery if the order is above a certain amount.

“Sellers have a lot of flexibility to set their own pricing and configure that in various ways,” Justin Scott, head of product at Square, told MobileSyrup.

The service is available everywhere except Nunavut, given DoorDash doesn’t offer services in the territory. Alcohol orders can only be delivered in Ontario, Alberta, Manitoba, Quebec, and British Columbia.

Image credit: Square

Scott said the goals are to create a connection between the customer and seller, something that’s absent when orders are placed through delivery apps, and help sellers keep more of their money.

“What we’re trying to do is put the tools in the hands of our sellers to create that so they can really own the ordering relationship.”

When orders are placed through a company’s website, that business also receives the contact information of the person who placed the order. This will help restaurants better market, and get to know their customer base.

Despite the service being commission-free, a DoorDash spokesperson said drivers delivering through DoorDash Drive won’t be making less than those delivering with the regular app.

While this may be great for sellers, questions remain about what the deal is for buyers. With many food delivery apps out there, why should customers utilize the service Square is offering, especially given it requires customers to make orders directly on a company’s website?

Square is banking on customers looking to support their local businesses.

There have been dozens of news stories over the past two years detailing the high commission costs restaurants have to pay to delivery apps, Scott said. This has created a lot of awareness on the issue. He does admit that every buyer is different and it depends on their situation, but the company is striving to give sellers resources to create changes that might help buyers think otherwise.

Canada is the first international market where the program has launched. It was first introduced in the U.S. in mid-2020 and the company has seen 173 percent growth year over year. Scott said he expects the same to happen in Canada, given thousands of businesses utilize Square and ongoing restrictions across the country are limiting dining options.

Image credit: Square

Source: Square

Note: This article have been indexed to our site. We do not claim legitimacy, ownership or copyright of any of the content above. To see the article at original source Click Here

Related Posts
The Digital Markets Act will change how you use apps thumbnail

The Digital Markets Act will change how you use apps

Big change is here for big tech — and it might just improve your life along the way. First, some context is in order. For the past several years, tech companies and EU regulators have been battling it out over app stores, fair access, and the digital market in general. This led to the EU
Read More
Asus reveals stunning Zenbook 14 OLED and Zenbook 17 Fold thumbnail

Asus reveals stunning Zenbook 14 OLED and Zenbook 17 Fold

‎Ele vem em diferentes versões que usam os processadores mais recentes da Intel e AMD. Estes são os dois tipos de RAM: DDR5 para chips Core H de 12ª geração da Intel e DDR4x para chips Ryzen da AMD.‎ ‎Muitas empresas de computadores mostraram os seus novos produtos, e a ASUS foi uma delas. Na…
Read More
OpenSSF启动Alpha-Omega项目 提高开源软件安全 thumbnail

OpenSSF启动Alpha-Omega项目 提高开源软件安全

为进一步改善开源软件(OSS)的安全现状,OpenSSF 今天宣布启动 Alpha-Omega 项目,从而让软件安全专家直接参与和执行自动安全测试。该项目已经获得了 500 万美元的启动资金,并得到了包括微软、Google 在内的诸多科技巨头的支持。 OpenSSF 总经理 Brian Behlendorf 表示:“我们必须认识到开源软件是现代社会关键基础设施的重要组成部分,因此要采取一切必要措施来保证它和我们的软件供应链的安全。Alpha-Omega 以公开和透明的方式支持这一努力,通过主动发现、修复和预防漏洞,直接提高开源项目的安全性。这是我们 OpenSSF 希望成为改善开放源代码安全的主要渠道的开始”。Alpha-Omega 项目试图通过“系统地寻找开放源代码中尚未发现的新漏洞,然后与项目维护者合作,使其得到修复”,来提升全球开放源码软件供应链的安全性。微软 Azure 的首席技术官 Mark Russinovich 表示:“能支持 OpenSSF 和 Alpha-Omega 项目,我们感到非常自豪。开源软件是我们技术战略的一个关键部分,我们必须了解伴随着我们所有的软件依赖的安全风险。Alpha-Omega 将通过与维护者的直接接触以及使用最先进的安全工具来检测和修复关键的漏洞,为关键的开源项目提供保证和透明度。我们期待着与行业伙伴和开源社区就这一重要举措进行合作”。该项目中的 Alpha 将帮助最关键的开源项目(包括独立项目和核心生态系统服务)的维护者识别和修复安全漏洞,并提升其安全态势。这些项目将根据 OpenSSF 保障关键项目工作组的工作,在专家意见和数据的帮助下进行选择。而 Omega 则确定至少 10,000 个广泛部署的开放源码软件项目,在这些项目中,它可以将自动安全分析、评分和补救指导应用于其开放源码维护者社区。Omega 软件工程师团队将调整分析管道,以减少假阳性率并检测新的漏洞。
Read More
Clean Air Act complaint paints smoggy picture at Tesla Fremont factory thumbnail

Clean Air Act complaint paints smoggy picture at Tesla Fremont factory

Tesla is facing a lawsuit brought under the US Clean Air Act by the Environmental Democracy Project (EDP) claiming pollution from its Fremont facility. According to the complaint [PDF]: "Tesla has exposed residents and workers in the area surrounding the Fremont Factory to excess amounts of air pollution, including nitrogen oxides, arsenic, cadmium, and other
Read More
Bombas Holiday Sale Takes 20% Off Socks, Underwear and More thumbnail

Bombas Holiday Sale Takes 20% Off Socks, Underwear and More

Why You Can Trust CNET Our expert deal-hunting staff showcases the best price drops and discounts from reputable sellers daily. If you make a purchase using our links, CNET may earn a commission. Stock up on all your essentials and save big this holiday season. When it come to clothing, everything should be itch-free and
Read More
Index Of News