Just Eat, Deliveroo & Uber Eats for Restaurant and Take away businesses

28
Posted 30th Apr
So being a restaurant owner I thought I would share my experience during this crisis.

Due to covid-19 we closed our dine-in side of the business on the day we were told to. We remained open for takeaways (with restrictions in place, only 1 person allowed in at a time to collect orders, contactless or over phone payments, and contactless collections.)

Initially this was very slow for business as customers were reluctant to leave their houses to collect orders. Luckily we were signed up to Uber Eats prior to covid-19 and this continued to drive a sensible income for the business to date.

However recently I thought to integrate Deliveroo and Just Eat into our delivery/takeaway side of the business. This is where I met hurdles and extortion...

Here is a small comparison of commission rates for using the 3 services, and using their delivery drivers...
Uber Eats - 30% of total order including VAT
Just Eat - 25% of total order + VAT
Deliveroo - 35% of total order + VAT

We signed up to Just Eat recently, however they were unable to activate our service due to lack of delivery drivers in the area.

Deliveroo, the price is absolutely ridiculous, and I intend to take this further in business forums and any government channels. I know that Deliveroo used to charge 25% inclusive of VAT around 3 months ago. However increasing that by 10% + VAT makes it near enough, if not completely impossible for any business to make any money from.

Side note: We have attempted to recruit our own delivery drivers for the business. However, when we did ever have any, they would either be unreliable, inconsistent, or demand even higher rates than paying for an all in one service. Also they are limited to number of orders they can take on at one time, example, they are out on a delivery, another order comes, all prepared, but the drivers wont be back from the previous delivery for another 20-25mins, which introduces a huge backlog of orders. We tried multiple drivers at one point, but this was not cost effective, and again we still had the same problems as above, even when I also had someone in charge of logistics.

To be honest, the moral of my rant is firstly to make end customers aware of the commission rates we have to pay to provide convivence to our customers, and to boycott Deliveroo for being the only ones out there to take advantage of the situation and introduce rates which are absolutely extortionate.
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Put the prices up mate! Then your competition will do so and if business drops the Deliveroo wont get so much cash and they will have to reduce their charges to keep there business afloat.

You could end going under either way!
groenleader30/04/2020 16:00

Put the prices up mate! Then your competition will do so and if business …Put the prices up mate! Then your competition will do so and if business drops the Deliveroo wont get so much cash and they will have to reduce their charges to keep there business afloat. You could end going under either way!



We already increased our pricing due to an increase in cost of supplies. Putting up the prices further would indefinitely kill the trade. Regardless we are doing roughly 20% over our breakeven with collections and uber eats. What gets to me more is the fact they are taking advantage of the situation. Also Deliveroo do not allow different prices on their services than on our menus. Just Eat and Uber eats allow the restaurants to increase their prices from the in house menu prices.

It would be a catch 22 situation where revenge kills my business as well as theirs, which certainly is not my prerogative.

Thanks for your comment by the way
Edited by: "Jay91" 30th Apr
Perhaps have a look at FoodHub? I’m not sure what they charge business wise but they have a calculator that can work out if they are a better alternative for you than the others you mentioned foodhub.co.uk/bec…ner
ChelseaRae30/04/2020 16:05

Perhaps have a look at FoodHub? I’m not sure what they charge business w …Perhaps have a look at FoodHub? I’m not sure what they charge business wise but they have a calculator that can work out if they are a better alternative for you than the others you mentioned https://foodhub.co.uk/become-a-partner



I will look into that, haven't heard of them before. Though im not sure if they provide delivery services. Will look into it now. Thanks!
Thanks for posting this, I never thought that their rates would be so high If anything, I thought they’d have a flat charge because it’s the same cost delivering one item or 10 items to the same address. I’m fortunate that my takeaways in the area have their own delivery drivers and if delivery is in high demand, before placing the order they do tell you that there could be a wait of up to an hour etc.
Jay9130/04/2020 16:04

...Deliveroo used to charge 25% inclusive of VAT around 3 months ago. …...Deliveroo used to charge 25% inclusive of VAT around 3 months ago. However increasing that by 10% + VAT makes it near enough, if not completely impossible for any business to make any money from.


If "impossible for any business to make any money from" Deliverpoo, presumably just terminate the arrangement, subject to whatever contractual commitment was acceptable at time of sign-up.
Wow, I never realised that these companies took such a big chunk of the price! I'm amazed that any business can make any profit from dealing with them.
Jay9130/04/2020 16:07

I will look into that, haven't heard of them before. Though im not sure …I will look into that, haven't heard of them before. Though im not sure if they provide delivery services. Will look into it now. Thanks!


I believe you may have to provide your own delivery service with Food Hub and can see you’ve had problems with that in the past so it may not be a viable option but worth looking into nonetheless.
I have used FoodHub as a customer in my local area as there is no service charge/excessive costs in comparison to other delivery companies.
I can understand your frustrations and from a customer perspective it’s also frustrating that food companies are paying such extortionate fees that inevitably get passed onto the customer. For instance my local chip shop charges £7.95 for a burger and chips on UberEats, minimum order amount for delivery so you have to add on something extra and then pay a delivery charge, so in effect a burger meal worth around £5/6 becomes £12-13. I could never justify paying that and so refuse to order from them.
I wish you all the best with your business and raising awareness on commission costs
Out of interest who pockets the delivery charges on each of these platforms?
That's a real eye opener Jay.

Best of luck to you.

Personally I prefer to ring my local takeaway up, order direct with them and collect
Edited by: "Gollywood" 30th Apr
Informative post and sorry for your troubles but at least you still have a source of income.

Have you thought about using Google or Facebook to advertise locally - customers who see your ad and call quoting a reference number in the ad get x% off if they collect?

BTW, what happens to the delivery fee that these delivery services charge the customer - do they keep all of that or do they share that with the restaurant?
Jay9130/04/2020 16:07

I will look into that, haven't heard of them before. Though im not sure …I will look into that, haven't heard of them before. Though im not sure if they provide delivery services. Will look into it now. Thanks!


food hub is great, customer ordering food side,I stopped using just eat and now deliver from food hub, as the only cost I pay is delivery Which is cheaper and there usually 10 percent online off offer.
Just about everything where I live has its own ordering website or uses food hub.
I think the main benefit of using these companies driver is they are available on demand
Whereas using your own may cause a backlog as you’ve said

Best to increase your price I guess
Don’t know where you located
But where I am deliveroo has hardly any restaurants on it
Can’t believe these companies charge a lot no wonder restaurant have prices higher prices to menu
Just rewinding a bit, it may be worth reassessing how you previously had your delivery drivers setup. I'm not sure what food you provide so it could be simpler, but thinking on most examples, order, cook and prepare, package out for delivery.

Presuming it takes a few mins to cook then package etc then let's say 10 ish mins minimum up to maybe 30 (depending on food of course).

Were you sending out each order individually or batching up? I can only presume batching and then multi drop, else waiting 25 mins for driver return is crazy slow or too far a delivery radius.

If the above is how you was doing it, how about aiming for 30 or 45 min slots..... Take a bunch of orders, send out with driver, he multi drops in a local radius and should be back in about 30 mins. By then, the next slot of orders should be ready, driver picks up and back out again. Repeat as needed.

Else how about speaking to local cab firm, make a deal for £ per drop off. Example my local cab firm is something like £6 set fee for local taxi. Maybe the company for a bit of extra business (especially at the moment) may agree a cheaper rate based on regular customer (you) bringing regular extra demand to them?

Again, I suppose it depends on the food, minimum order value you set and average order value.
AndyRoyd30/04/2020 16:14

If "impossible for any business to make any money from" Deliverpoo, …If "impossible for any business to make any money from" Deliverpoo, presumably just terminate the arrangement, subject to whatever contractual commitment was acceptable at time of sign-up.



There are no initial setup fees or ongoing fees. To stop using their service (applies to all) is you just turn off the tablet they provide, and that stops any orders from coming in.
HappyShopper30/04/2020 16:37

Informative post and sorry for your troubles but at least you still have a …Informative post and sorry for your troubles but at least you still have a source of income.Have you thought about using Google or Facebook to advertise locally - customers who see your ad and call quoting a reference number in the ad get x% off if they collect?BTW, what happens to the delivery fee that these delivery services charge the customer - do they keep all of that or do they share that with the restaurant?



The delivery fees go straight to the company, not to us. This fee doesn't even go to the drivers. Ive spoken to many uber eat drivers that come to collect our orders, and they get £3-£5 per order they deliver. Typically most earn around £40 per week from doing food deliveries, that's why most just use it to fill in their time when there are no taxi pickups.
abdul530/04/2020 17:12

I think the main benefit of using these companies driver is they are …I think the main benefit of using these companies driver is they are available on demand Whereas using your own may cause a backlog as you’ve said Best to increase your price I guess Don’t know where you located But where I am deliveroo has hardly any restaurants on it Can’t believe these companies charge a lot no wonder restaurant have prices higher prices to menu



We are based in Hatfield, Hertfordshire and are an Indian restaurant.
Our local Indian restaurant was on ubereats and when I priced it up it was £45 for the 2 of us. I rang the restaurant seeing if they are doing collection and explained it seemed a lot he said they would do it direct for £30 and the manager dropped it off
a666andy30/04/2020 17:36

Just rewinding a bit, it may be worth reassessing how you previously had …Just rewinding a bit, it may be worth reassessing how you previously had your delivery drivers setup. I'm not sure what food you provide so it could be simpler, but thinking on most examples, order, cook and prepare, package out for delivery.Presuming it takes a few mins to cook then package etc then let's say 10 ish mins minimum up to maybe 30 (depending on food of course).Were you sending out each order individually or batching up? I can only presume batching and then multi drop, else waiting 25 mins for driver return is crazy slow or too far a delivery radius.If the above is how you was doing it, how about aiming for 30 or 45 min slots..... Take a bunch of orders, send out with driver, he multi drops in a local radius and should be back in about 30 mins. By then, the next slot of orders should be ready, driver picks up and back out again. Repeat as needed.Else how about speaking to local cab firm, make a deal for £ per drop off. Example my local cab firm is something like £6 set fee for local taxi. Maybe the company for a bit of extra business (especially at the moment) may agree a cheaper rate based on regular customer (you) bringing regular extra demand to them?Again, I suppose it depends on the food, minimum order value you set and average order value.



We were batching up orders. The radius was up to 6 miles. Pretty much tried all combinations of solutions with our own drivers, but it just became more of hassle and complaints from customers with either slow delivery or cold food arriving to destination.

Spoke to a local taxi firm (AAA Taxis) their drivers were not willing to quote "smell out their cars with food." Yeah I did say why cant they put it in their boot or in a thermal bag, but they just declined it.

However, recently due to a decline in taxi services, they were going to set a standard charge of £6 per food delivery for up to a 2 mile radius (even though they charge £3 for taxi rides up till 11pm anywhere in Hatfield), and that would be chargeable to the customer. Again extortionate, I am looking to revisit this soon, as I know that their business is significantly on a decline as result of their greediness as see if they are willing to negotiate this price.
mike121230/04/2020 18:00

Our local Indian restaurant was on ubereats and when I priced it up it was …Our local Indian restaurant was on ubereats and when I priced it up it was £45 for the 2 of us. I rang the restaurant seeing if they are doing collection and explained it seemed a lot he said they would do it direct for £30 and the manager dropped it off



Due to the Covid-19, myself as the owner is the only one with a car, but I also live with my parents who are susceptible to the virus so I cannot even go to the restaurant, and have a manager operating it instead.
Foodhub and your own drivers.

Although you have already said you have issues by using your own drivers what about if you could get together with another restaurant and that would halve the costs for drivers.
There is some history to the Deliveroo charges. They started life focusing only on the expensive end of the restaurant trade, that too in London only, thinking it will help them avoid competing with Just Eats and Hungry House which usually focused on the budget end. They were also quite picky in selecting who could use their platform and rejected many. So for a popular restaurant where a typical main course was already in the £12-15 range (and higher in many cases), signing up with Deliveroo was an easy decision even with the ridiculous 42% cut because it added income to an already busy restaurant.

Unfortunately, Deliveroo struggled with volumes and ended up covering all restaurants but didn't cut their own commission. And with major investors on board who are watching their growth rate and cash burn a lot more closely, it may be even more difficult to reduce their commission. I spoke with another restaurant owner recently and he said he doesn't need Deliveroo - Just Eats and Uber are more than sufficient and allow him the price flexibility.
m1keyp1key30/04/2020 18:54

Foodhub and your own drivers. Although you have already said you have …Foodhub and your own drivers. Although you have already said you have issues by using your own drivers what about if you could get together with another restaurant and that would halve the costs for drivers.



Tried this with 3 different restaurants/takeaways in my area, with no success.
bozo00730/04/2020 19:10

There is some history to the Deliveroo charges. They started life focusing …There is some history to the Deliveroo charges. They started life focusing only on the expensive end of the restaurant trade, that too in London only, thinking it will help them avoid competing with Just Eats and Hungry House which usually focused on the budget end. They were also quite picky in selecting who could use their platform and rejected many. So for a popular restaurant where a typical main course was already in the £12-15 range (and higher in many cases), signing up with Deliveroo was an easy decision even with the ridiculous 42% cut because it added income to an already busy restaurant.Unfortunately, Deliveroo struggled with volumes and ended up covering all restaurants but didn't cut their own commission. And with major investors on board who are watching their growth rate and cash burn a lot more closely, it may be even more difficult to reduce their commission. I spoke with another restaurant owner recently and he said he doesn't need Deliveroo - Just Eats and Uber are more than sufficient and allow him the price flexibility.


Exactly what i tried to do, but unfortunately just eat have stopped in our area temporarily. Going to message my representative again. But this is 100% correct
Thanks for posting this,
Defo an eye opener.

One more question, I get emails in my Inbox now and again saying 50% off Uber eats/ Just eat, how does that work in terms of your takings? Does the discount come from the Restaurant or is it subsidised by the company?
Deal.hunter12330/04/2020 19:29

Thanks for posting this, Defo an eye opener. One more question, I get …Thanks for posting this, Defo an eye opener. One more question, I get emails in my Inbox now and again saying 50% off Uber eats/ Just eat, how does that work in terms of your takings? Does the discount come from the Restaurant or is it subsidised by the company?


From what i am aware of this is subject to the restaurants that participate in this offer. At the same time we don't pay commission on these offers. But regardless we still lose the 50% instead of the 50% +commission.

However for NHS staff offers the services absorb the additional comm
Edited by: "Jay91" 30th Apr
Moral of story, for restaurant like mine, we offer 10% discounts on collection orders, plus additional offers including free bottles of wine 9’ orders over £75... if and where possible, particularly with covid-19 please collect instead. Also boycott deliveroo and companies alike for taking advantage of the crisis. I wish not to say bad for a company, but those taking advantage should be highlighted, this includes travel and retail companies.

Side note i might (or someone else can make a post of all the companies they have experienced who are taking advantage of this current crisis) further to those with valid cases to take into parliament to accumulate sufficient votes to take action against these companies.
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