Delivery service Lieferando profitably rides the wave of the coronavirus pandemic
In the face of the global pandemic, the food delivery service Lieferando has witnessed significant growth in Germany. With lockdowns and social distancing measures increasing demand for online food delivery, the platform has become a lifeline for many consumers seeking convenient and contactless access to meals.
According to Katharina Hauke, Lieferando's managing director, the coronavirus crisis has accelerated the service by a year in terms of the number of restaurants on their platform. Currently, Lieferando boasts over 20,000 restaurants listed, a figure that continues to grow.
The majority of these orders, approximately 90 percent, are delivered by the restaurants themselves, incurring a 13 percent charge. However, if Lieferando handles the delivery, a 30 percent fee is charged.
While the number of restaurants in Berlin that have agreed to allow Lieferando drivers to use their restrooms is not specified beyond being "half" of the restaurants delivered to by Lieferando, it is clear that this practice is limited to the city. Public toilets are available in cities, according to Hauke, but there have been instances where these facilities are not available, leading to criticism about drivers' inability to find restrooms during working hours. Hauke dismissed these allegations.
Lieferando's growth has not been without challenges. The company's operations in Germany are characterized by employment models that reflect broader platform capitalism trends, with a mix of dependent employment and self-employment among couriers. This has been a focus of labor relations and works council developments during this period.
Despite these challenges, Lieferando's strategic partnerships, such as with Amazon Prime, have likely contributed to its growth post-pandemic onset. In the third quarter, the number of orders processed by Lieferando increased by 38 percent, with ten million orders being processed monthly.
As we move forward, it will be interesting to see how Lieferando navigates the evolving landscape of the food delivery industry in Germany, balancing growth with the complexities of platform economy dynamics and labor management.
Other businesses, such as technology companies, have also seized the opportunity to expand during the pandemic, with online food delivery platforms like Lieferando experiencing a surge in popularity. As the financial landscape of the business world continues to evolve, it's likely that technology will play a significant role in shaping how various sectors adapt and grow, including the food delivery industry.
