By Bernd Debusmann Jr
All renewal fees have also been deferred, while new restaurants will be on-boarded to the platform free of charge
Food and grocery delivery platform Talabat has announced a new ‘community continuity’ plan to support partner restaurants with commission deferrals and fee waivers amid the Covid-19 pandemic, it was announced on Tuesday.
According to Talabat, the plan is aimed at supporting the cash flow of 4,500 small and medium-size restaurants, representing a majority of the platform’s partners.
All renewal fees have also been deferred, while new restaurants will be on-boarded to the platform free of charge.
Both commission and renewal deferrals will have a six-month payment plan. Based on market conditions, Talabat will re-evaluate the plan in May.
“In these challenging times, we have set ourselves two very clear objectives,” said Muhammed Yildirim, the managing director of Talabat UAE. “First, we have the responsibility to ensure that 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,” he added.
Statistics from JP Morgan Chase show that small to medium size restaurants on average have a 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,” Yildirim added. “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.”