Deliveroo in S'pore could introduce dynamic pricing for food orders

Dynamic pricing will encourage people to eat lunch at 3pm.

Belmont Lay | May 21, 2019, 10:43 PM

Deliveroo is likely to be the first food delivery service in Singapore to introduce dynamic pricing for food orders.

This is according to recent changes to its terms of service that occurred in March 2019.

The change stated 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".

However, orders in process will not be affected by changes to prices.

This is provided the order is completed within two hours of creating the basket.

No dynamic pricing at the moment

Deliveroo currently does not have dynamic pricing for menu items.

But it has introduced variable pricing

Variable pricing

Earlier in 2019, Deliveroo got rid of its flat S$3 delivery fee.

It was replaced with a "variable" fee based on factors such as distance and the time it takes the rider to deliver, TNP reported Deliveroo Singapore's general manager Siddharth Shanker as saying.

Consumers, on their part, are aware of dynamic pricing as a mechanism to shift behaviour.

Such variable pricing when applied to food orders can be used to entice customers to place orders during non-peak hours.

Deliveroo not confirming anything

But a spokesman told The New Paper the updated terms clarify how customers are charged.

This is depending on the promotions on offer, which may see changes in prices of items.

Deliveroo did not comment on whether it plans to introduce dynamic pricing for menu items in the future.

In the works

Talk of dynamic pricing was first heard in September 2018.

The British company announced plans to experiment with it at the Restaurant Conference in London then.

Dynamic pricing would see consumers getting a discount during quiet periods, but having to fork out more during bad weather, which effectively means periods when demand outstrips supply.