Foodhub comments on the cost models of the big three takeaway delivery apps
This week, Which? revealed the hidden additional delivery costs of using the ‘big three’ food delivery apps Deliveroo, Just Eat and Uber Eats, and how this translates to consumers directly paying more for the same food vs ordering direct from the restaurant.
Ardian Mula, CEO of Foodhub said: “Takeaway apps have been some of the most successful businesses over lockdown due to the lack of viable alternatives for food and drink in the hospitality industry.
“However it has become clear from the Which? report that some restaurant aggregators are 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 30%.
“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.
“Foodhub always encourages our takeaway partners to pass savings made through our non-commission model to its customers in the form of discounts. Not only does this make the food available via Foodhub generally around 15% cheaper than its rivals but it also helps takeaway restaurants gain more orders and new customers as well as enable them to keep more of their profits. 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*.
“It is common for many food delivery services to charge takeaway restaurants a commission for using their service, meaning consumers in some instances are paying a service fee, delivery fee AND a convenience fee with our rivals. But with Foodhub its only usually the delivery fee, which the takeaway controls.
“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 incredible range of takeaways and restaurants on its books.
*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.
Foodhub is an online food portal launched in 2017. There are more than 20,000 takeaway & restaurant partners currently featured online at www.foodhub.co.uk and through the apps available for iOS and Android.
Foodhub is unique in that it does not take a commission from the food establishments for each order placed. This enables them to offer better prices and deals to customers than other online food platforms.