Deliveroo, Just Eat etc
Deliveroo, Just Eat etc
Author
Discussion

Doofus

Original Poster:

31,186 posts

189 months

Tuesday 15th November 2022
quotequote all
Having done zero research myself; what's the business model for these delivery companies? How do they generate revenue and how can they possibly make a profit?

Terminator X

17,949 posts

220 months

Tuesday 15th November 2022
quotequote all
£50 takeaway yet the restaurant gets £45. Delivery charge and driver gets less. Times that by millions of transactions.

TX.


Doofus

Original Poster:

31,186 posts

189 months

Tuesday 15th November 2022
quotequote all
So you pay them for the food, and that includes their markup?

bigpriest

2,109 posts

146 months

Tuesday 15th November 2022
quotequote all
Doofus said:
So you pay them for the food, and that includes their markup?
Yes, a takeaway menu on Just Eat has inflated prices compared to the shop's own menu. Lots of takeaways have their own website but re-direct you to Just Eat for orders. A minority of takeaways attempt to get you to install their own apps but the power of Just Eat is having all takeaways in one place. All of this is only relevant if you're a lazy sod - you can still phone up directly and order.

Doofus

Original Poster:

31,186 posts

189 months

Tuesday 15th November 2022
quotequote all
Ok, thanks. smile

Simpo Two

89,351 posts

281 months

Tuesday 15th November 2022
quotequote all
That's the problem with all these internet strap-on companies - not just the above but Uber and all the comparison websites from insurance to hotels. They just sit in the middle, while the real companies underneath get less, and you pay more. Perfect middle-men.

If I want a takeaway I just ring the shop. It's easier than online.

'Hello, I'd like a 68 and a 31a please'
'That'll be 10 minutes'
'Great, on my way'.

hotchy

4,724 posts

142 months

Tuesday 15th November 2022
quotequote all
They take 15% of your order on just eat.

Doofus

Original Poster:

31,186 posts

189 months

Tuesday 15th November 2022
quotequote all
hotchy said:
They take 15% of your order on just eat.
or add 15% to it?

KevF

1,994 posts

214 months

Wednesday 16th November 2022
quotequote all

They also charge the provider if there are issues with the delivery such as items missing, cold etc. If JE, Deliveroo etc have to refund their customer they tend to transfer that charge to the restaurant. You have to be on your toes to check and push back on each one as sometimes its a driver issue or fraud

Koyaanisqatsi

2,381 posts

46 months

Wednesday 16th November 2022
quotequote all
Terminator X said:
£50 takeaway yet the restaurant gets £45. Delivery charge and driver gets less. Times that by millions of transactions.

TX.
Quite a bit more than that. One of the delivery companies (can't remember which one), takes 30% according to some of our clients (restaurants and cafes).

I believe it's a bit like Amex merchant services though. They'll initially offer you a stupid %, you tell them to bugger off and they come back offering a lower %, repeat a couple of more times and you can get it down to what one might consider reasonable.

CzechItOut

2,156 posts

207 months

Wednesday 16th November 2022
quotequote all
It varies by company, but revenue consists of:

Set up fee to the restaurant
Percentage of each order
Delivery fee to customer
Other sundry fees to customer

Plus the companies don't really make a profit. They climb over each other to try and gain market share. For example, Uber Eats have just sent me five 50% off vouchers, although as others have said restaurants inflate their prices on these platforms to cover the fees lost.

A993LAD

1,906 posts

237 months

Wednesday 16th November 2022
quotequote all
hotchy said:
They take 15% of your order on just eat.
Is that why 2 chicken wings were missing from my Bargain Bucket?

A993LAD

1,906 posts

237 months

Wednesday 16th November 2022
quotequote all
Also I don't think any of these companies post a profit certainly deliveroo has never posted a profit and their annual losses increased in 2021 to 298 million

jonby

5,360 posts

173 months

Thursday 17th November 2022
quotequote all
It's all about building databases, the prize for all tech companies. That's where the (perceived) value is.




ReverendCounter

6,087 posts

192 months

Thursday 17th November 2022
quotequote all
Looks like they're taking up to 35% off restaurants:


Cotty

41,437 posts

300 months

Thursday 17th November 2022
quotequote all
Simpo Two said:
That's the problem with all these internet strap-on companies - not just the above but Uber and all the comparison websites from insurance to hotels. They just sit in the middle, while the real companies underneath get less, and you pay more. Perfect middle-men.

If I want a takeaway I just ring the shop. It's easier than online.

'Hello, I'd like a 68 and a 31a please'
'That'll be 10 minutes'
'Great, on my way'.
You seemed to have missed the bit where you give your address and pay for the order.

I don't use Just Eat but when I did I had it connected to my Alexa, it was just a case of "Alexa open Just Eat and order my last meal". All done and you don't have to speak to anyone,

Simpo Two

89,351 posts

281 months

Thursday 17th November 2022
quotequote all
Cotty said:
Simpo Two said:
That's the problem with all these internet strap-on companies - not just the above but Uber and all the comparison websites from insurance to hotels. They just sit in the middle, while the real companies underneath get less, and you pay more. Perfect middle-men.

If I want a takeaway I just ring the shop. It's easier than online.

'Hello, I'd like a 68 and a 31a please'
'That'll be 10 minutes'
'Great, on my way'.
You seemed to have missed the bit where you give your address and pay for the order.
No, it's so easy you didn't think of it - I go to the shop and pay when I get there. Genius eh?!

PurpleFox

478 posts

101 months

Thursday 17th November 2022
quotequote all
It should / could be a benefit to a takeaway though.......back in the day I used to work for the local chippy delivering Pizzas etc.

Looking back it must have been a total headache for the owner, Monday to Thursday it was barely worth him paying a driver as the orders were sporadic. Then on a Friday or Saturday night when it was actually busy, one of the two drivers would inevitably phone in 'sick' meaning the owner would have to help do deliveries in his LandCruiser. Having access to Deliveroo / Just-Eat etc would have been ideal as the owner would have just paid the commission and not had the hassle of employing drivers to sit about chatting / eating his food and letting him down when he really needed them.


What astounds me is that these companies loose hundreds of millions a year and yet still manage to keep going......how?

StevieBee

14,277 posts

271 months

Thursday 17th November 2022
quotequote all
Simpo Two said:
No, it's so easy you didn't think of it - I go to the shop and pay when I get there. Genius eh?!
Completely with you on this. But I think that's because we're country bumpkins! smile Our takeaway option is a Fish and Chip van on Thursdays and Fridays!

My daughter lives in Beckenham, South London and the whole Deliveroo/Just Eat thing is massive there....and, I have to say, very good. The other week we had a family get together there and ordered take-aways from three different places - all arrived piping hot in 20 mins. Would have taken longer to walk or drive to all those places.

So my view is that its usefulness is geographically contingent.

foxbody-87

2,675 posts

182 months

Thursday 17th November 2022
quotequote all
One thing that I don’t get it the amount of people that get McDonalds delivered.
I don’t think McDonalds food is particularly great and it doesn’t travel well, so I don’t really understand the mentality of paying for delivery on a lukewarm middle of the road burger and fries.