Foodhub responds to news of service fee changes from its rival

Deliveroo has announced today that it is to change the way its service fees work.

It will now charge a flat-rate of 5% of customers’ basket value (up to a maximum of £2) for all orders from the takeaway delivery platform.

The move has attracted criticism from one of its big rivals, Foodhub.

Foodhub CEO, Ardian Mula, said: “In effect this is Deliveroo charging its customers at both ends.

“Restaurants and takeaway businesses who work with Deliveroo already have to hike their prices to cover the commission charged on orders by Deliveroo. Many are already struggling under the weight of these commission charges – and have to pass them on to customers simply to survive.

“Now customers will, in effect, be paying twice – once to cover Deliveroo’s commission charge, and again to now cover the 5% service fee.

“To put this into perspective, if a family of four orders a £40 takeaway meal from Deliveroo, this will now mean a £2 service fee on top of that cost.

“At Foodhub we don’t follow a commission model and we never charge a service fee to our customers - we only ever charge our restaurant and takeaway partners a monthly fee, which allows them to make more profit on each order and keeps the price low for the customer.”