Uber Eats, Covid-19 hit restaurants owners in the pocket as Level 3 looms

While Kiwis can look forward to getting their takeaways delivered next week as the country moves to Level 3, eateries are warning they will struggle to turn a profit using the popular Uber Eats service.

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The Restaurant Association is asking the food delivery service to lower their commission rates so restaurants can survive. Source: 1 NEWS

Rick Harden of Slick Burgers in Christchurch said he was only using the food delivery service “for my love of my customer”.

“Every time I do an Uber, I’m pretty much doing it at cost,” he says.

The Restaurant Association said Uber Eats charged businesses a 30 to 35 per cent commission.

“We'd like to see them consider and lower those commission rates for our industry, even if it's temporarily," chief executive Marisa Bidois says.

However, Uber told 1 NEWS it won’t be cutting their fees.

But it says it will be putting in place a relief package which includes $500,000 of funding for local businesses.

Alternatives to Uber are also popping up and Prime Minister Jacinda Ardern has encouraged Kiwis to look at ways to support their local businesses.

“Just see whether or not they offer delivery directly themselves, that will often be then at a lesser cost to them as a business,” she said.

It’s something Mr Harden is doing. He said it was worth the trouble taking it into his own hands.

"Try and do it yourself," he said.

Meanwhile, Wellington cafe Fidel’s is trialling a click-and-collect service where people can text or phone in their orders.

“Then we're going to be letting people pick up from our side kiosk,” its co-owner Roger Young said.