Are you a Deliveroo user? Here's what 'The Money Saving' expert Martin Lewis warns

The food takeaway app "Deliveroo" was criticized by The Money Saving Expert, Martin Lewis for some serious reasons. Here's what he said.

Agencies
Following concerns that takeaway food was being sold on credit by "Deliveroo", Martin Lewis warns all its customers.

People were surprised to see a new delivery app option for those who might not have the money to pay for it or the ones who can't afford it.

Users could now choose to use 'Klarna' to pay for their food while looking at payment alternatives as the Financial company 'Klarna' doesn't charge interest or late penalties for postponed payments.


The decision sparked a backlash, with many claiming that the app was encouraging consumers to incur debt during a period of significant financial uncertainty, reports The Manchester Evening News.

Martin Lewis tweeted and asked Deliveroo if they needed their consumers to incur debt to pay for takeout.

Food delivery apps driving rise of 'dark' kitchens in India
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Did you know that popular eateries like Haldiram's, Chaayos, Keventers, Saravana Bhavan and Vasudev Adigas, to name only a few, have set up cloud kitchens in partnership with Zomato?



They have. And that is the reason why you get to order food from these eateries even in areas near where their restaurants may not exist.

Did you know that popular eateries like Haldiram's, Chaayos, Keventers, Saravana Bhavan and Vasudev Adigas, to name only a few, have set up cloud kitchens in partnership with Zomato?They have. And th..
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"We started this model in March 2018, when we realised that while a lot of budding entrepreneurs are setting up new restaurants and cloud kitchens, the pace of setting up new kitchen infrastructure has been lagging behind the demand for them," Mohit Sardana, Chief Operating Officer, Food Delivery, at Zomato told.



"We wanted to accelerate the process of investment in kitchen infrastructure in areas facing a supply deficit and therefore, created the Zomato Kitchens model. Today, we are present in 50+ cities with 700+ kitchens that are already operational," Sardana added.

"We started this model in March 2018, when we realised that while a lot of budding entrepreneurs are setting up new restaurants and cloud kitchens, the pace of setting up new kitchen infrastructure h..
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One factor that has worked in favour of the food delivery platforms is the data they have about consumers' preferences. Analysing these data allow them to gauge the nature of the demand of food a particular area generates.



Armed with these data, the food aggregators can confidently approach a restaurant business for cloud kitchen partnerships in new areas that are likely to generate handsome profits for both parties, according to people familiar with the way these partnerships tend to forge.

One factor that has worked in favour of the food delivery platforms is the data they have about consumers' preferences. Analysing these data allow them to gauge the nature of the demand of food a par..
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Swiggy launched its cloud kitchen initiative "Swiggy Access" in 2018 and since then it has created over 1,000 kitchens for its restaurant partners. Through "Access", restaurant partners can test new markets and expand intra and intercity, with no rent or deposit charged for the premises/infrastructure.



Swiggy shares valuable insights not only regarding existing customer preferences, but also on unmet food choices with partner restaurants, thereby helping them fulfil the demand-supply gaps.



Restaurant partners are also able to leverage Swiggy's insights to improve their food quality through consistent customer feedback and optimise their kitchens for factors like stock planning, demand forecasting, preparation time and order edits.



Swiggy said that it is committed to working with the restaurant partner community to bring in the necessary confidence and control to ensure there is no compromise in the safety of food.

Swiggy launched its cloud kitchen initiative "Swiggy Access" in 2018 and since then it has created over 1,000 kitchens for its restaurant partners. Through "Access", restaurant partners can test new ..
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The food delivery platform added that it mandates all restaurants and cloud kitchens operating on the platform to possess a valid Food Safety and Standards Authority of India (FSSAI) licence and additionally conducts hygiene audits across the restaurant partner network with credible third-party audit firms.



Zomato said that one of the biggest advantages of virtual kitchens is the relatively low investment and business risk. It has set for itself "high safety and hygiene standards".

The food delivery platform added that it mandates all restaurants and cloud kitchens operating on the platform to possess a valid Food Safety and Standards Authority of India (FSSAI) licence and addi..
Read More

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He said that although "Buy Now, Pay Later" appears harmless but it is not.

Lewis said, "Buy Now Pay Later may seem innocuous but it is 1) Not yet regulated 2) Debt, even if done right its 0%. Borrowing should only be if NEEDED, for planned one-off budgeted purchase, not a cheeky Nandos."

The fact that 'Klarna' can pass arrears to debt collectors, adding financial stress to customers who are unable to make the payments, should be noted even though it has many alluring possibilities compared to other financial services.

Millions of people choose 'Klarna' as a mode of safe, secure way to make online payments.
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Related FAQs

What is Klarna?
Klarna is a financial company that doesn't charge interest or late penalties for postponed payments.

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What did Martin Lewis tweet?
Martin Lewis tweeted and asked Deliveroo if they needed their consumers to incur debt to pay for takeout. He strongly said that Borrowing should only be done when necessary.
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