Deliveroo, Just Eat and Uber Eats accused of ripping off restaurants by taking 30% cut per order on top of delivery fees
DELIVERY platforms have been accused of ripping off restaurants during the coronavirus crisis.
Food delivery apps Deliveroo, Just Eat and UberEats take up to 30 per cent commission on orders as well as delivery fees.
⚠️ Read our coronavirus live blog for the latest news & updates
Restaurants were told to go into lockdown on March 23 by the Prime Minister and they're not allowed to reopen for punters to dine in until at least July 4.
It's seen some struggling restaurants pushed to the brink with major high street chains such as Frankie & Benny's saying a "large number" of stores will close for good even after lockdown is lifted.
Many chains and independent restaurants have instead turned to online takeaway orders, which are allowed to continue during lockdown.
But there are concerns this could lead to small businesses being ripped-off.
Harringay Traders' Association in north London told us it's heard numerous reports of "overzealous charging and profiteering" during lockdown, with its chair Shefik Mehmet labelling delivery platforms as "greedy".
Meanwhile Timur Ekingen, editor of kebab trade magazine BritShish magazine, said: “The fees the companies levy on cafes and restaurants are opaque, exorbitant and short-sighted: if they continue like this, they risk forcing many of them out of business."
Meanwhile, Andrew Goodacre, chief executive of trade body the British Independent Retailers Association (Bira) told The Sun: "It's disappointing these platforms have not made it easier for companies to work with them by actually reducing commission during the period.
"The reduced margins would be more than compensated by the extra volume."
FSB national chairman Mike Cherry added: “The lockdown means more takeaways and restaurants are now relying on online platforms to reach their customers and it’s understandable they take commission for this service.
“But it’s important online delivery companies do not take advantage of the Covid-19 pandemic by hiking their prices at a time where restaurants have no choice but to subscribe. Fees need to be justifiable, fair and proportionate."
Deliveroo wouldn't tell us what its commission rates are, saying it doesn't have set rates and that they vary by restaurant, but one restauranteur told the the firm charges 33 per cent.
For collection-only and delivery orders that don't require Just Eat's drivers Just Eat charges 14 per cent commission. It admits it charges a higher rate for orders it delivers but it wouldn't tell The Sun what rates are, only saying they vary.
It did, however, cut commission for independent retailers by 33 per cent for 30 days from March 19, 2020.
Uber Eats has temporarily waived commission for orders directly collected by customers during the crisis.
But it continues to charge up to 30 per cent commission on delivery orders.
Of course, retailers may negate some of these costs by putting up their own prices for consumers using the platforms.
Reduced sign-up fees
Deliveroo, Just Eat, and Uber Eats all told The Sun they believed commission offered value for money, and it wasn't as simple as reducing fees as these are used to cover other related costs, such as drivers' wages, insurance, and marketing.
Most read in Money
They said they'd instead cut or waived fees for restaurants signing up to their sites during the crisis, while some have also donated cash to the smallest firms they're partnered with.
READ MORE SUN STORIES
Deliveroo normally charges around £200 for restaurants of any size to sign up but this has been waived for independent and small restaurants, while larger firms have had the fee reduced to £50.
Just Eat has waived its usual sign up fee of £295 plus VAT, while Uber Eats has also waived its fee - although it's unclear what it usually charges.