MEDIA RELEASE

BY ORDERING DIRECT YOU WILL BE HELPING OUR BUSINESSES MAKE IT THROUGH

1 April 2020: We are calling out to our loyal Locals to help keep our restaurants and cafe’s in business so they can retain their staff and keep providing you great food and coffee until we get to the other side of this pandemic.

The best way you can support your favourite locals is to call them direct and collect. Government health guidelines around sanitisation and social distancing have meticulously been put in place to make picking up your order safe. Many would be happy to bring your order to your car if you are parked nearby. By ordering direct you will be helping these businesses make it through and retain as many of their wonderful staff you’ve come to know.

The crippled business owners of Chapel Street Precinct in Melbourne have been served a red herring with delivery giant Uber’s smoke and mirrors response to the Coronavirus outbreak. 

“Hard-working restaurateurs and café owners across the country have been given a slap in the face by UberEats, which has barely lifted a finger in its Coronavirus response package to help hard-working Australians keep their jobs,” said Chapel Street Precinct Association (CSPA) General Manager, Chrissie Maus. 

“The company (UberEats) released a statement this morning, giving empty ‘pledges’ to help alleviate the immense financial stress haunting our Chapel Precinct restaurant and cafe owners. These appear to be well-intentioned offers dressed up as corporate social responsibility, but they benefit only Uber themselves. They (delivery giants) don’t understand we are hemorrhaging. ” 

“On behalf of all independent small businesses that will be relying on delivery services to survive the Global Coronavirus Crisis, Chapel Street Precinct is calling on UberEats and other delivery platforms to immediately slash their commission by at least 50%.” 

Katherine Sampson, owner of Hello Sam Burger Bar in South Yarra, pleaded, “they have to help us, as we are drowning. With 80% of our sales now on UberEats and customer numbers down, our profits have diminished significantly. It seems Uber does not believe in the merit of true corporate social responsibility in protecting our restaurant owners and has seen this as an opportunity to make huge profits. If this doesn’t change, it won’t be worth us trading through as we will start losing money by being open. The only reason we are trading is to keep our staff in jobs”

CSPA President, Justin O’Donnell, continued the drive. “In 2018 Uber barely paid 1% company tax in Australia; only $8.5 million of its whopping $785 million-dollar income was handed over to the government. And it’s these taxes, which Uber barely paid, that are now supporting out of work hospitality workers lining up for Centrelink payments. If UberEats were serious about supporting the Chapel Precinct hospitality industry it needs to exist, many of these job losses could be prevented.”

‘Uber is refusing to give up on its steep commission, which for some restaurants rips 35% from a restaurant’s operating costs, which is often more than the profit margin. UberEats said in its statement: “Given the uncertainty and potentially lengthy nature of the current situation, we do not believe deferred commissions are the solution for all orders.” 

Cr Steve Stefanopoulos, Mayor Stonnington Council, concluded by saying: “We urge all members of our community to support local business where possible, by ordering online or via telephone. We hope that food delivery companies play their part in helping our local eateries survive during this health crisis.”

UBER EATS CORONAVIRUS RESPONSE PACKAGE IN DETAIL

[UBER EATS SAYS] Helping restaurants drive demand when they need it through the launch of a $5 million funding stimulus for independent restaurants to use for in-app promotions.

[CSPA SAYS] Allowing restaurants the ability to advertise for free on UberEats’ platform is hardly beneficial if every restaurant is fighting for the same business. Furthermore, this doesn’t cost UberEats a cent, but it does increase consumer spending on its platform.

[UBER EATS SAYS] Introducing a new opt-in program for restaurants to receive daily payments.

[CSPA SAYS] This money is not Uber’s to sit on an earn interest anyway – it’s the restaurant’s money that is needed to pay for wages, rents and food costs. It should be paid on a daily basis regardless.

[UBER EATS SAYS] Waiving sign-on fees for new restaurants and caterers.

[CSPA SAYS] This is a red herring – because the real money to be made is not in sign-on fees, but the up to 35% commission UberEats strips from the restaurant’s bottom line on each order. Often this is larger than the profit the restaurant is making off each dish sold.

[UBER EATS SAYS] Introducing no service fees for restaurants on pick up orders.

[CSPA SAYS] Another red herring! Scott Morrison doesn’t want Australians to leave the house unless absolutely necessary. People use Uber to get food delivered, not pick up! And often restaurants have to jack up their prices to accommodate UberEats’ exorbitant 35% commissions. You’d get a cheaper meal if you called the restaurant direct and ordered over the telephone, you have one less person handling your food, your food is fresher and hotter and you are helping a local business stay afloat and keep someone in a job.

[UBER EATS SAYS] Pledging 25,000 free delivered meals to healthcare workers and other relief services.

[CSPA SAYS] In a move that seems like the only redeeming pledge, that is until you realise there are 536,000 healthcare workers of Australia – of which there are more than 300,000 nurses and midwives, and almost 100,000 medical practitioners. This will be hardly felt on the frontline.

With your help we can make it through and retain what makes living in our Chapel Street Precinct so great.

Let’s call and collect whenever we can whilst practicing the recommended social distancing and together we can all make it through.

Media info:  Drew Lambert | DL COMMS | 0425 200 606 | drew@dlcomms.com.au

Sign Our Petition to Halve the Fee from Food Delivery Giants
We are urging food delivery giants like UberEats & Deliveroo to at least halve their delivery fees in an effort to support Chapel Street Precinct’s hospitality businesses through Covid-19. Please help. Click here to sign our petition now.