Why Mr D Food charges R35 for a delivery
When you order takeaways through the Mr D Food app, you’ll pay slightly more for the delivery than if you use UberEATS. The reason for this is that Mr D decided to split the charge between restaurants and their patrons. “Our whole model is based on being sustainable to all three [of our clients],” the head of Mr D Food at Takealot, Devin Sinclair, told MyBroadband.
Those three clients are the patrons, the restaurants, and their delivery franchisees. Uber may charge R25 for deliveries where Mr D Food charges R35, but UberEATS may charge restaurants more for the service, said Sinclair. “Our price also includes VAT,” he said. The R35 charge does not cover the full cost of a delivery, as “it costs us more to do a delivery than we recover from the customer”.
Sinclair said they pay franchisees to execute the deliveries, and the franchisees pay their drivers. The drivers do not directly get a cut of the delivery fee. However, Mr D Food imposes guidelines on its franchisees for how it should pay drivers.
In the end, the free market ensures they receive a fair wage, he said. “If the franchisee wasn’t paying their drivers enough, they wouldn’t have any drivers.”
For users who want to tip drivers directly while paying for their food, the app includes an option to select the percentage they wish to tip. This feature wasn’t in the app initially, but was included after feedback from customers.
“We take the customer feedback very seriously,” said Sinclair, adding that the percentage of customers who tip drivers through the app is increasing.
“They are by far the majority.”
- ^ taking 100,000 orders per month (mybroadband.co.za)
- ^ Mr D Food is taking 100,000 orders per month through its app (mybroadband.co.za)