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Food delivery companies take £1bn from UK restaurants

Updated: May 15, 2020

Just Eat, Uber Eats and Deliveroo are capturing more than £1bn in annual fees from UK restaurants, in a market last year worth £8.5bn.

The figures are an estimate by independent UK takeaway market analyst Peter Backman and coincide with a survey by online ordering platform Flipdish that reveals nearly half (48 percent) of takeaway buyers are unaware that typically up to one-third of their takeaway value goes to these marketplaces in commission.

The poll also states that four in five consumers (83%) would like aggregators to be more transparent online about the hidden fee charged to restaurants. In fact, a large majority (70%) said the level of commission means they would now prefer to order direct if it helps save their favourite independent restaurant from closure during the current crisis.

The survey also reveals how nearly three-quarters (73%) of takeaway buyers have already made up their mind before using online marketplaces, suggesting independent restaurants could be losing out on the revenues they would have made anyway.

Conor McCarthy, CEO of Flipdish, comments: “People want their favourite restaurants to survive. But many don’t realise that the best way to support these businesses is to order direct so more of the money stays with the restaurant. If Just Eat, Uber Eats and Deliveroo insist on taking such high commissions, we urge for more transparency to help consumers actively choose how they order food online and who profits most.”

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