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COVID-19: How Lalamove Is Offering A Zero-Fee Solution In The War Of F&B Delivery Apps

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As Singapore continues to battle with Covid-19 and the impression it has dealt on our economic system, one other conflict appears to be brewing throughout the F&B business.

In a bid to outlive the plunge in walk-in gross sales from the dining-in ban, F&B companies have turned to meals supply apps to spice up their income.

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Nonetheless, this introduced one other problem to them as they battle to afford the steep fee charges charged by varied meals supply platforms which are available at round 30 per cent.

Over the previous few weeks, many F&B retailers have gathered to rally for governmental help in decreasing fee charges charged by F&B supply apps.

“Whereas the federal government encourages takeaway and supply choices, commissions of 30 p.c charged by supply corporations similar to Seize and Deliveroo are too prohibitive for eating places already working on skinny margins. We ask for assist in negotiating decrease charges to make supply choices financially viable for us,” the attraction letter reads.

Since meals supply apps take a reduce from F&B retailers at round 30 per cent on all orders, this works out to $1.50 fee charge for a $5 order.

A No-Charge Different For F&B Retailers

On-demand supply platform Lalamove stated that they’ve all the time had a pro-F&B service provider answer — they don’t take a single cent from retailers. 

Fee charges have by no means been part of our enterprise mannequin. Our focus has all the time been on refining our supply methods and processes, as a way to ease our shoppers and clients into a brand new digital regular.

– Alex Lin, Managing Director of Lalamove

Lalamove permits retailers to go for a multi-stop perform that mixes orders and supply routes, as a way to optimise the job of every driver and considerably reduce the burden on logistical prices. 

Screengrab from Lalamove

“The service provider or consumer could add as much as 20 drop-off factors in a supply order. The route can be optimised so that every subsequent drop-off level will price solely marginally extra,” he defined.

In Singapore, there are as much as 30,000 drivers on the Lalamove platform.

Lalamove Has Seen A Threefold Enhance In Orders

Picture Credit score: Lalamove

Because the begin of the circuit breaker, Lalamove has seen the variety of service provider companions on the platform doubled, with the bulk hailing from the F&B business.

Drivers throughout all of Lalamove’s fleets and the full variety of orders have each escalated at the very least threefold.

Earlier than the circuit breaker, meals deliveries comprised round eight per cent of the enterprise. The quantity has since climbed to 13-15 per cent.

– Alex Lin, Managing Director of Lalamove

The rise in demand for meals supply is especially resulting from social distancing measures and the dining-in ban, which can solely be lifted after circuit breaker ends on June 1.

Their no-fee mannequin for F&B retailers is enticing and even after the circuit breaker ends, Lalamove could proceed to be an alternative choice to different supply apps as they have already got an enormous fleet of 30,000 drivers on the platform.

Featured Picture Credit score: Tokyo Cheapo / Lalamove

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