Business & Investment

Wolt cuts restaurant prices until end of January

“With the help of restaurant owners to reduce fees in the light of the announcement of the third blockade,” I read a notice from the shipping company. The reduced commission is now 22% instead of 27% and is valid until the end of January. “Wolt is a complementary platform for restaurants and is no substitute for sitting in a restaurant,” said Israel Lior Eshkol, general manager of Wolt. “Without a restaurant, Wolt could exist. I didn’t. ” Wolt has estimated aid to millions of shekel restaurants.

As a result, restaurants continue to secure more than one-fifth of the shipping company’s order price. This is in addition to the shipping charges paid by the customer through the company’s app. Please note that the fees (22%) issued by Wolt are average. The actual fee is a matter of agreement with each restaurant. The average value for orders via Wolt is NIS85.

Is reducing fees to 22% really good news for restaurant owners? “First, we need to add VAT, so the effective fee is 25.5%,” said Shai Berman, CEO of the Restaurateur Association. “Second, fee cuts are welcome, but not enough, because they are only valid for a month and are still a very heavy overhead for restaurant owners. To Wolt, including VAT. The fee should not be higher, 20%, “says Berman. He also criticizes the percentage billing method. “The fee does not reflect delivery costs. If you order NIS100 from a restaurant on the other side of town and the delivery person arrives in 30 minutes, you will pay Wolt NIS25. From the restaurant 5 minutes away. For an NIS 400 order, I pay NIS 100. This is a distortion. The problem is that many restaurants have no alternative. “

Last week, Globes said restaurants were organizing to develop their own food delivery app with the goal of halving the fees charged by Wolt and other major food delivery companies, Ten Bis. I reported.

Under the current blockade conditions, there are no take-out meals from the restaurant. Many restaurants have to return to the “park bench delivery” model for people within a permitted radius of 1 km. “This is another blow, especially for small restaurants. Takeout is very important for companies operating as food stands. It doesn’t save the industry, but it protects the infrastructure, especially the workforce. What makes it possible. Facilities and reputation. It’s unclear if a restaurant that was considered fashionable six months ago and is now closed will be remembered by people when this is over. Motivation to keep a business alive, even if it means losing. Money. “

= Berman estimates that 5,000 of Israel’s 14,000 restaurants will not survive, and that number has increased with the third blockade.

“In the last few months, some people have attacked Walt by spreading false numbers about the amount of fees the company charges restaurants. As I said in the past, Walt said. The amount of fees is not uniform and is based on various criteria. The main one is the average size of orders from restaurants. Wolt announced a reduction in fees during the third lockdown period using the company Useful for all restaurants, especially small restaurants with low average orders. “

The restaurant recently filed with competition authorities on demand that Wolt should be declared monopolized in cities that control more than 50% of the restaurant’s food delivery sector. The petition states that Walt “uses his dominant position to limit competition and force the arrangement of restaurants that are harmful to the public.” In particular, Wolt does not allow restaurants to publish lower onsite prices, and it is claimed that the 27% commission is an exclusive price, which increases the price and prevents the restaurant from making a profit. I will. They will close. “

Walt responded to this petition. “Walt’s goal is to provide the most efficient and fastest service anywhere in Israel, even in peacetime. Since the beginning of the coronavirus pandemic, Walt has provided restaurants with a way to continue working and earn a living. Walt considers himself part of the restaurant industry and a restaurant partner, as evidenced by the fact that more than 1,500 restaurants are affiliated with us. “

Israeli Business News, Published by Gloves- en.globes.co.il -December 27, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Wolt cuts restaurant prices until end of January

https://en.globes.co.il/en/article-1001354809#utm_source=RSS Wolt cuts restaurant prices until end of January

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