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News Article

Food Delivery Apps Close the Deal

By José Escobedo | Tue, 03/31/2020 - 16:09

In times of COVID-19, the world needs entrepreneurs, business leaders, venture capitalists and food delivery apps more than ever. While the pandemic moves across the world and governments urge people to stay home, such measures have greatly affected the restaurant industry. Nevertheless, the use of food delivery apps keeps businesses on the go and customers happy.

Grubhub´s CEO Matt Maloney, in an interview for MarketWatch, expressed his company has received “10 to 15 times” more restaurant leads than average during the outbreak and that number will most likely increase as more states across the US enact bans on dine-in eating and in-person shopping.

In Mexico, the situation is not much different. In a report published by El Economista, over 2,000 restaurants have closed in the past two weeks, severely affecting the tourism and service industry. Nevertheless, Mexico’s delivery platforms have helped restaurants and other local food businesses survive the financial hardship brought down by the virus. Apps such as Uber Eats, Rappi, Sin Delantal, and Didi Food are keeping Mexican food delivery workforce busier than ever.   

In the US, businesses have also closed their doors and revenue has decreased at alarming rates. Maloney says we are living in anxious times and restaurants and other chains are experiencing a 75 percent to 90 percent drop in sales. “We are doing everything we can to drive more business for them. We are constantly telling them that if they have customers lists to blast off emails and let them know they are available for delivery, especially those that had not delivered previously.”

How long will the pandemic last and for how many more months will people have to remain inside their homes is anyone’s guess. One thing for certain is that business will not prosper, at least not in the long-term, if they only depend on food delivery. “The industry is not large enough for all restaurants to survive just on delivery, but they can survive for a matter of weeks, potentially,” Maloney says.

 

 

The data used in this article was sourced from:  
El Economista, Market Watch, StreetFight
Photo by:   PIxabay
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José Escobedo José Escobedo Senior Editorial Manager