Food Delivery Apps and Insurance
It is no secret that consumers are leading extremely busy lives. In many families, both the partners are working and as a result, neither had the time to cook food. This is where food delivery apps come in handy. Apps like UberEats deliver restaurant food to the consumer at very little extra costs. There are many cloud kitchens that have come into existence ever since food delivery apps came into the business. These food kitchens do not provide a dine-in experience. Instead, they only serve take away food.
There is no doubt that the restaurant industry has been benefitting from the rise of food delivery apps. The number of orders received from food delivery apps has gone up by over 50%. The overall revenue of the restaurant industry in America has gone up for the first time in many years.
At the present moment, restaurants are busy rejoicing in their new-found glory. However, it can be said that they may be blissfully unaware of the dangers that may be lurking in the background. It is true that food delivery apps have become a major source of revenue. However, they could also become a major source of liability if proper precautions are not taken.
Shifting Liability to Restaurants
It needs to be understood that food delivery apps are much larger and much more sophisticated organizations as compared to restaurants. This is the reason when the negotiations are being done, and the contract is about to be signed, the food delivery apps tend to have the upper hand. They have standard contracts which they get all their restaurant partners to sign. Some of these contracts push the risk entirely to the restaurant partners. These contracts state that the apps are only a mechanism to connect the consumer with the restaurant. Hence, all the risks that arise during the service delivery process need to be borne by the restaurant itself.
It is, therefore, the restaurants that need to have extensive insurance covers and not the food delivery apps.
Some of the major risks that are faced while delivering food have been listed in this article.
Risks Faced when Delivering Food
To sum it up, food delivery apps are a new opportunity that the restaurant industry is taking advantage of. However, the industry also needs to be aware of the threats associated with this responsibility and the insurance coverage that is required to protect themselves.
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