Major food delivery apps UberEATS, OrderIn, and Mr D Food are fighting fiercely for their share of the South African market.
Speaking to the City Press, OrderIn CEO Dinesh Patel said the apps were currently engaged in a pricing battle.
“Right now, we are in a massive pricing war to win customers. We have seen this play out all over the world,” said Patel.
He said nobody in the food delivery market was currently profitable, due to the pricing battle.
Mr D Food said it and UberEATS were by far the largest delivery apps in South Africa and had the biggest influence on pricing.
“While we are not profitable at the moment, we believe that the necessary scale can be attained in South Africa,” said Mr D Food.
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Uber denied there was a pricing war taking place between food delivery apps in South Africa, and said the competition it has introduced encouraged innovation among competitors.
This came after Patel accused Uber of undercutting independent players in order to push them out of the market.
“We are in a David versus Goliath battle,” said Patel.
“The giants – the Ubers and the big technology companies – go into markets, they undercut everybody to squeeze out the independent players like ourselves and put people out of business,” he said.
Patel also stated that UberEATS attempted to poach OrderIn staff when it launched in South Africa, and accused the company of scraping the OrderIn website for restaurant data.
Uber denied Patel’s allegations, stating they were untrue.
The news comes after UberEATS has continued to expand its operations in South Africa, recently opening its services in Durban.