Deliveroo Might Introduce ‘Surge Pricing’ for Food Delivery During Rainy / Peak Period

Older generations would’ve found the concept unthinkable back in their heydays, but it seems that the newer gen has accepted it with wide, open arms.

And in case you’re wondering, I’m not talking about taking pictures without looking at the camera and saying “Cheese”.

I’m talking about food delivery services.

With at least three thriving food delivery services running around our island (even at this moment), it won’t be wrong to say that…

Food delivery has conquered the island.

Aunt Matilda: Is that really a good thing, though?

Well, not exactly, because it just means that people are getting lazier. I know I’m getting lazier. But hey, times are changing, and one shouldn’t try to question things that change with time. I mean; who would’ve expected handphones to be as viral as they are, back in the oldies?

Aunt Matilda: Well, that’s true. But hey, I think you’re digressing quite a bit right?

Huh?

Aunt Matilda: The article is about surge pricing, right? That’s the only reason I tuned in, you know; I have zero interest in your rancid humour that stinks of blue cheese.

Well, they do say that a person’s sense of humour is equivalent to their second aunt’s personality.

Aunt Matilda: That’s t- you have a death wish, kid?

And right, moving on.

Surge Pricing

You didn’t read the article headline wrongly. Like all the car-hailing services prevalent in Singapore (namely Grab and Grab alone), Deliveroo may just become the first food delivery service here to initiate dynamic pricing for orders off a menu, judging by recent changes to its terms of services.

And according to The New Paper, the addition, that was first introduced in March, states that Deliveroo “may operate dynamic pricing some of the time, which means that prices of menu items and delivery may change while you are browsing”.

So yeah, expect prices to dip real low during slack periods, and rates to shoot through the roof once the rain and peak hours hit.

Clarifications

Before you hit the Panik button, however, here’re some clarifications.

For one, changes to prices will not affect orders in process, as long as the order’s done within two hours of creating the basket.

And for two, the updated terms will expressibly convey how customers are charged, as prices of items may vary depending on the promotions on offer.

While Deliveroo currently lacks a dynamic pricing system for menu items, the company has yet to state whether it plans to introduce the system in the future.

It Was Revealed Some Time Ago

The plan to dabble with dynamic pricing, however, was first revealed by Deliveroo chief operating officer Rohan Pradhan at the Restaurant Conference in London last September.

According to reports, he apparently told industry leaders that this development could mean discounts during quiet periods, but harsher rates during harsh weather.

And judging from how Deliveroo seems to be gearing its strategic plans, dynamic pricing will definitely be right up its alley; earlier this year, the food delivery service changed from a constant $3 delivery fee to a “variable” fee based off factors such as distance and the time it takes the rider to deliver.

Wait, hold on

If Deliveroo’s set to implement such a consumer-alienating policy, does this mean that the other local services are set to follow suit?

Well, thankfully (at least for now), the other services have no plans for dynamic pricing as yet.

According to managing director for Foodpanda Singapore, Luc Andreani, the food delivery service (which has 6,000 restaurant partners) has no plans to push out “surge pricing”.

And the same applies for GrabFood; having partnered with more than 5,000 merchants in its relatively short stint here thus far, the food delivery service said that it has no plans to introduce dynamic pricing for menu items.

We’ll be notified… surely

Deliveroo might’ve announced possible plans for a dynamic pricing plan here in Singapore, but should they incorporate it for real, they’ll have to follow legal regulations…

And communicate significant changes in price calculations to customers.

“Deliveroo’s official response suggests that dynamic pricing for menu items may be introduced in the future, and if and when it is, this should be brought clearly to its customers’ attention,” said lawyer Eugene Thuraisingam.

“If they are saying that this change doesn’t amount to introducing dynamic pricing for their menu items, then if in future they do decide to introduce dynamic pricing for their menu items, they will have to issue a separate notice,” he added.

So yeah, at the very least, you’ll be informed if Deliveroo does follow through on this particular plan. Which means that until then, you’ll best enjoy the current rates during peak periods…

Because they don’t seem to be dropping anytime soon.

But hey, think on the bright side: that could mean we could finally order some food when it’s raining, eh?