A NEW player in town is challenging the city's only delivery service as it threatens to chew up their profits.
Dubbo based online ordering company Eat Appy launched in Wagga this week, with seven businesses already on board.
Its competitor Menulog has been operating in town for five years and is now offering businesses a delivery service where drivers are supplied. This means the flat commission rate would rise from 14 to about 30 per cent.
Robert Baliva, behind Thaigga and Tammy's Thai, said the delivery platforms are similar but Eat Appy gives businesses more power and the ability to connect directly with customers.
"The difference for the shop owners is a heavily reduced commission compared to what Menulog charge," Mr Baliva said.
"Menulog handle everything on their end; so they take all the orders and only give you what the customer wants and where they're located.
"They also hold all of the money and then pay it out to you once a week, so they directly take that commission out."
However with Eat Appy, the funds and an invoice are directed straight to businesses.
The new platform charges about eight per cent on each order, but it is capped at $49.50 a week in commission.
Mr Baliva said he is sometimes paying up to $2000 a week to Menulog.
The Daily Advertiser contacted Menulog for comment, but they did not respond to email requests.
Sizzle on Baylis owner Bass Sadaka said the new service has a better understanding of the regional challenges impacting small businesses.
"There is more support and a partnership," Mr Sadaka said.
"The owners of Eat Appy come from the same background too, they've had cafes, so they understand how hard it is for small businesses to operate.
"They've taken that on board when they've created that app and takeaway system to cater for people more like us, instead of the big guys like Menulog."
Eat Appy owner John Nixon established the service in 2015 as he saw a need in the overall industry for small to medium restaurant businesses.
"Small to medium restaurants did not have the same availability to the changing tech scene in the restaurant sector as the bigger guys," he said.
"If they did find a solution, the high commissions all but chew up all profits."
Mr Nixon said Hogs Breath have also come on board, along with three Indian restaurants that have already joined up.
Mr Sadaka said being able to create his own database with the customers using this service will mean that he can pass on the savings to them.
"I have all sorts of meal deals that I can't offer on Menulog because I lose money with the commission that they charge," he said.
"Because we have [customers'] numbers, we can send out text messages or emails with special offers.
"You can also earn points with Eat Appy; so 500 points equals $5."
Mr Baliva said he can understand Menulog charging these higher rates and set up fees in metropolitan areas that cater to a larger clientele base.
"In a small town, where we are the ones pushing Menulog, we should start off with low commission, no set-up fees; they should really understand smaller towns better," he said.
"When I talk to the guys in Sydney at Menulog, they have no idea where Wagga is.
"If [Eat Appy] grows big enough, I'm pretty sure I'll drop Menulog ... they need a wake up call."