Deliveroo, Just Eat and Uber Eats are well known within the
takeaway industry, but ordering from the ‘big three’ can result
in additional costs for both the consumer and the independent
takeaway behind the screen.
With recent increases to service charges from both Deliveroo and
Just Eat, plus numerous hidden costs of using the these food
delivery apps as revealed by Which? earlier in the year, the cost
of a takeaway is being hiked across the board for consumers.
For the takeaway, high levels of commission that can be up to 36%
per order mean they are having to consider how to recoup these
staggering costs.
At Foodhub, a 0% commission model operating via a monthly
subscription means the takeaway has more control over their
business, and the consumer benefits from no additional charges.
This means ordering via Foodhub is often up to 15% cheaper than
ordering through a competitor.
Ardian Mula, CEO of Foodhub commented: “Takeaway
apps have been some of the most successful businesses over
lockdown, however it has become clear that restaurant aggregator
apps have been taking advantage of this fact, leaving restaurants
with no choice other than to increase their prices for customers
ordering through these platforms in order to regain some of the
costs associated with the high levels of commission that can be
up to 36%.
“It is common for many food delivery services to charge takeaway
restaurants a commission for using their service, whilst also
charging consumers a service fee. When restaurants then increase
prices to cover the commission, it means consumers are
effectively paying twice to access the service.
“Here, at Foodhub, we’ve been committed to a 0% commission
business model from the outset, meaning that the cost of
operating through Foodhub is more manageable for local
businesses.
Rukhsar Shah, Owner at the Rupeyal Spice Grill in
Stoke-on-Trent, said: “We joined Foodhub in 2009 after
realising how much money we were spending on rival takeaway
platforms. We were impressed by how Foodhub really values the
takeaway industry, and its 0% commission model means we now save
on average £1,000 a month – which is massive for an independent
takeaway.
“What’s more, our customers know they will only be charged for
their order, with no additional service fees of any kind, helping
us gain further customer loyalty and repeat business.
“We’ve been thrilled with Foodhub, and have seen our business go
from strength to strength since joining.”
Ardian Mula added: “By offering restaurants a
more affordable option through our model, it means they in turn
are able to offer consumers a cheaper price – meaning the same
order when purchased through Foodhub is often up to 15% less than
ordering through our rivals. Last year we estimate that we saved
consumers, when compared directly to the prices of our rivals,
£1.9 million* on the cost of their favourite takeaway meals*.
“Moreover, compared to other delivery services who charge
takeaway establishments commission on orders and deliveries for
use of their service, we can save the average takeaway partner
£2,250** a month by not charging them commission - that’s
approximately £30,000 extra in their till every year.”
Foodhub is one of the UK’s biggest takeaway delivery platforms
with over 20,000 partners across the UK. Available online or via
the easy to use mobile app – Foodhub has an wide range of
takeaways and restaurants on its books.
Ends
*Based on 750,000 takeaway meals ordered through Foodhub during
the 7 weeks of first national lockdown, and an average takeaway
meal value of £15.
**Based on 1,000 orders per month via Foodhub.
