Talabat to defer commission and waive on-boarding fees in the UAE

Published: 9 April 2020 - 6:15 a.m.
By: Hotelier Middle East Staff
Food delivery platform Talabat has revealed its response to help its restaurant partners suffering due to the coronavirus pandemic.

It has released a community continuity plan that will see widespread commission deferrals and fee waivers to support the cash flow of 4,500 small and medium size restaurants on its UAE platform.

The plan includes full or partial temporary deferral of commission fees, plus all renewal fees will also be deferred, while new restaurants will be on-boarded to the Talabat platform free of charge.

Commission and renewal deferrals will have a six-month payment plan, which will be reviewed in May based on market conditions by then.

Talabat UAE managing director Muhammed Yildirim said: “In these challenging times, we have set ourselves two very clear objectives. First, we have the responsibility to ensure we do everything possible to keep everyone safe and healthy. Secondly, we need to ensure business continuity - for everyone in our ecosystem, including our restaurant partners, and particularly the smaller ones.

“A study by JP Morgan Chase has shown that small to medium size restaurants on average have a very small cash buffer of about 16 days. By deferring commission fees with a 6-month payment plan, we are helping restaurant partners to keep on going.

“We are doing this on top of making weekly payments and many other things we have already been doing for weeks for our restaurant community.

“We are in this together. Our futures are interlinked, and we want to show solidarity with our community and we will obviously continue to assess the situation as it evolves.”

The moves comes in response to widespread unrest in the UAE restaurant community about the high commission charges from delivery aggregators, with prominent members of the F&B scene calling on commission to be dropped.

Careem NOW has reduced its commission by 15%, while Zomato has also unveiled its own plan to help restaurants through these troubling times.

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