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"High commission inhibits growth," says Foodhub boss

Updated: May 7, 2020

The chief operating officer of online food ordering platform Foodhub has hit out at large aggregators charging takeaway restaurants high commission, saying it inhibits growth in the industry.

Philip Mostyn comments: “It is common for many food delivery services to charge takeaway restaurants a commission for using their service and also charge consumers a fee.

“We believe this is wrong and actually inhibits the growth of the industry by punishing those at its heart – the takeaway restaurants – with huge charges that are unnecessary and punitive.”

Foodhub launched in 2017 as a non-commission-based business model which charges a one off fee of around £150 and a rental fee of around £100 per month. In addition, no hardware rental is involved, restaurants simply use their own Apple/Android phone or tablet to receive and process orders. This, Philip says, enables the platform to offer better prices and deals to customers than other online food platforms.

He adds: “Charging 30% or 35% - as many commission-based takeaway delivery services do - in these times is unfair. Our takeaway orders have increased by 33% since lockdown but over 36% of takeaways have closed during the same period. It is only right that these takeaway restaurants also benefit from that extra money when they’re such an essential part of the industry.”

In the seven weeks of lockdown. Foodhub estimates it has saved consumers, when compared directly to the prices of its rivals, £1.9 million on the cost of their favourite takeaway meals.

Philip adds: “Moreover, compared to other delivery services who charge takeaway establishments commission for use of their service, we can save the average takeaway partner £2,550 a month by not charging them commission - that’s £31,025 extra in their till every year.”

Foodhub is offering the service to restaurants that want to introduce a takeaway option for three months free of charge, saving £450. To for more information and to sign up, click here

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