Are some companies going to be having a harder time in the Delivery Business?

Here we are in 2020 and in a pandemic created by a virus called COVID19.

The fact is delivery companies like UBER EATS,DOORDASH, GRUBHUB, POSTMATES, and INSTACART have increased business, and offered people ways of a full time or part time self employment opportunity.

However is there a slow down coming to companies like this?

Because of the Covid19 fast food places, restaurants, and stores have had to think outside the box. Many new companies signed up for delivery services.

These companies signed contracts with the service companies above to deliver products to customers, but what happened when the companies found out they could make more money doing it themselves. Some of the restaurants and stores started doing delivery themselves.

You see all the companies above hire independent contractors, these contractors are used to deliver the goods. There are no fees from the contractors but the service companies charge fees to use the service offered.

The companies also charge fees to the companies they hold contracts with, so in essence the companies are making less money from the deliveries. The fact that the companies offered a way to keep the business going and added an extra revenue source to the business is coming into question with many of these companies who sign up.Reported from of the restaurants and stores the service fees started to cut into the new revenue source and made them take a second look at stopping services.

The question being asked is CAN WE DO DELIVERY OURSELVES and MAKE MORE MONEY?

I have been noticing a trend among restaurants, mostly fast food places that are starting to offer a delivery service. Chick Fil A is one of them that uses these services, also Jimmy Johns, and Pandera starting delivery services. Other chains may start to join this trend as well.

If the restaurants and stores start to offer the services themselves why do they need companies like Uber, Doordash, Grubhub, Postmates, or Instacart?

Well there may be one saving factor in all this if you think about it it comes down to profit and losses for the restaurants and stores.

As I mentioned above delivery companies that use independent contractors do not have to pay an hourly wage, take and taxes, remove unemployment, or social security taxes.

This could be the ultimate factor in the decision for restaurants and stores to go into delivery or use a service.

Hiring more staff, and adding vehicles, insurance, and other factors may cut into the bottom line more than what the services above charge in fees.

The trend recently however is more deliveries than ever, so many food places and stores are taking the leap into delivery offered from themselves, instead of an outside service.

This could lead to less contracts and employment opportunities for the service companies.

Only time will tell where it all goes but another factor is the change in the recent election as well.

As the newly elected President Joe Biden takes office he is in favor of making independent contractors employees.

They are introducing the PRO ACT that could very well kill freelancing and independent contractor jobs.

Recently Uber and Lyft won a vote in California to keep independent contractors and not making them into employees but this may only be a temporary win.

The fact is it may become harder for service companies to offer services with no contractors, or having to make them into employees.

No one has a crystal ball but my prediction is YES these service companies are in for a fight.

They may see a decrease in contracts and more companies going solo delivery services.

The Outlaw Micheal Tomsik