On-demand delivery service Favor announced Monday evening it will waive all commission fees for independent restaurant partners throughout Texas.
The move comes as restaurants, food trucks and other businesses in Austin and across the nation are closing their doors or dramatically reducing staffing to deal with a big fall off in diners as a result of the coronavirus pandemic. It also came just hours after the White House changed its guidance, recommending no one gather in groups of 10 or more -- and as Austin Mayor Steve Adler seemed poised to close all Austin bars and restaurants.
We have been closely watching cities across the country move to close restaurants & bars. I've been on the record in favor of this as part of #Austin 's #COVID19 response. @JudgeEckhardt & I will make a public announcement tomorrow at 11:00AM CST.
— Mayor Adler (@MayorAdler) March 17, 2020
The company, which is based in Austin and is owned by H-E-B, provides on-demand delivery of groceries, restaurant items, as well as pretty much anything else findable at local stores. As part of its move Monday, the company said it would also provide four weeks of financial assistance to its runners if they are diagnosed with COVID-19, although it didn't specify what that might amount to.
For now, the waived fees apply to all locally owned and operated restaurant partners with five or less locations.
"Given the evolving situation with many unknowns, the program will entirely waive commission fees on all orders completed today, March 16, through at least March 31," the company said in a news release.
While the company noted it wouldn't increase fees during high-demand periods, as is common across the on-demand delivery industry, Favor said its delivery times may be longer than normal. And it noted it's equipping its delivery contractors with disinfectant supplies to clean vehicles and other items. The company has also started a contactless delivery option to eliminate the need for person-to-person interaction at drop off.
Favor's move is one in a wave of efforts by on-demand companies nationwide to help reduce the unquantified impact being felt by the food service industry. Chicago-based Grubhub made a similar move last Friday announcing plans to temporarily suspend the collection of up to $100 million in commission fees that independent restaurants pay to Grubhub.
