Latest research says that Food delivery apps, including Deliveroo, Just Eat, and UberEats, end up costing customers significantly more than if they ordered food delivery directly to a restaurant. The app companies said their commission charges were fair.
Which App Is More Expensive
- orders on Deliveroo were the most expensive, costing an average of 31% more than ordering directly
- UberEats cost an extra 25%
- Just Eat orders were 7% more expensive
The app companies said their commission charges were fair.
Use of food delivery apps has soared during the pandemic, as dine-in was made illegal and people stayed indoors. The pandemic-induced home ordering frenzy has also led to the rise of a new spate of ‘instant grocery’ apps.
Why the higher prices?
While the prices on the apps are usually set by the restaurant itself, they are often higher than what you’ll see on the restaurant’s website. Restaurants say it’s to be able to cover the cost of service fees charged by apps. These commissions can cost the restaurant 15-35% of each order. However, apps indicate that charging restaurants a commission is essential to their business model, and the fees cover insurance, delivery wages, and other services.