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Delivery Apps.. Price Inflation and Monopoly!

Delivery apps have introduced a distinctive modern approach to providing food menus from various restaurants that can either deliver on their own or use the delivery services that the apps offer as part of their service package. There is no doubt that setting up a complex environment with interwoven data and uses has its price and cost, and the pursuit of large profits from these services is legitimate. But everything requires studying its consequences, and here we are talking about the greed of some.

The greed of some has contributed to raising the prices of the simplest daily meals such as chicken and rice, pastries, and even traditional sandwiches

"Shawarma, pizza dishes, and pasta" where their prices on some apps have reached nearly 110%, some 30%, and a few maintained their price and absorbed the high commission percentage of the app companies, which does not include the delivery fee that sometimes amounts to a third of the meal's value or perhaps more. And 32 dirhams is one of the cheapest chicken-and-rice meals "Mandi," in addition to 9 dirhams for delivery. Such prices may overburden many people amid the new circumstances of extended working hours. The matter is even more severe if the orders are for households, multiplying the figure by the number of household members. In our previous example, that comes to 128 dirhams for four people, plus the delivery fee, whereas if you call the restaurant directly, the price of a single meal would be 22 dirhams and perhaps less!

Many restaurants are unable to provide their services online, whether in the form of a website or an app, due to many challenges, including digital marketing, technical support, all the way to digital security, electronic payment, then delivery and customer service.

Acquisitions and Providers

The number of service providers has decreased significantly after a series of acquisitions by some giant service providers, including the recent mergers as well. This matter is not reassuring, especially if the trend is toward monopolizing markets and regions in a way that tightens the noose on restaurants and shops that suffer from rising operating costs for the other reasons as well.

Restaurants Working Around It

A number of restaurants encourage you, after delivering orders through the apps, to contact them directly and obtain a direct discount on meals. However, this move is marred by the absence of a card payment mechanism. We also find other restaurants that merely waive the delivery fee for you without offering any discount on orders, benefiting from the percentage that used to go to the apps.

Sustainability Is Everyone's Demand

One of the most important points in commerce is sustainability. If we reach waves of inflation in the prices of foods and products offered on these apps, then demand will decrease, and people, restaurants, and shops will inevitably begin to migrate toward new solutions.

Monthly Subscriptions

Some service providers are planning to offer the possibility of a monthly subscription to provide special prices and services, which may also include lower delivery fees and other benefits. Others are planning to offer subscriptions at restaurants with fixed prices. Among the plans as well is pressing restaurants to provide family packages and options that ease the burden on families.

Covering New Areas

The issue of covering new areas is a major challenge for the companies, for these areas long for what is available in other and neighboring areas of restaurants, shops, and pharmacies. But the consumption of time and the spoilage of some materials as a result of distance hinder this network and increase the challenges.

Innovative Solutions

The beautiful thing about it is the innovative solutions presented by a number of restaurant owners, as well as universities, kitchens, and even cafeterias, by providing meals from their central kitchen and offering them under different names from the same location. This saves a great deal of operating costs and adds more options for customers.

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