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Foodhub 0% commission model stands out as competitors hike service charges

Deliveroo, Just Eat and Uber Eats are well known within the takeaway industry, but ordering from the ‘big three’ can result in additional costs for both the consumer and the independent takeaway behind the screen.

With recent increases to service charges from both Deliveroo and Just Eat, plus numerous hidden costs of using these food delivery apps as revealed by Which? earlier in the year, the cost of a takeaway is being hiked across the board for consumers.

For the takeaway, high levels of commission that can be up to 36% per order mean they are having to consider how to recoup these staggering costs.

At Foodhub, a 0% commission model operating via a monthly subscription means the takeaway has more control over their business, and the consumer benefits from no additional charges. This means ordering via Foodhub is often up to 15% cheaper than ordering through a competitor.

Ardian Mula, CEO of Foodhub commented: “Takeaway apps have been some of the most successful businesses over lockdown, however it has become clear that restaurant aggregator apps have been taking advantage of this fact, leaving restaurants with no choice other than to increase their prices for customers ordering through these platforms in order to regain some of the costs associated with the high levels of commission that can be up to 36%.

“It is common for many food delivery services to charge takeaway restaurants a commission for using their service, whilst also charging consumers a service fee. When restaurants then increase prices to cover the commission, it means consumers are effectively paying twice to access the service.

“Here, at Foodhub, we’ve been committed to a 0% commission business model from the outset, meaning that the cost of operating through Foodhub is more manageable for local businesses.

Rukhsar Shah, Owner at the Rupeyal Spice Grill in Stoke-on-Trent, said: “We joined Foodhub in 2009 after realising how much money we were spending on rival takeaway platforms. We were impressed by how Foodhub really values the takeaway industry, and its 0% commission model means we now save on average £1,000 a month – which is massive for an independent takeaway.

“What’s more, our customers know they will only be charged for their order, with no additional service fees of any kind, helping us gain further customer loyalty and repeat business.

“We’ve been thrilled with Foodhub, and have seen our business go from strength to strength since joining.”

Ardian Mula added: “By offering restaurants a more affordable option through our model, it means they in turn are able to offer consumers a cheaper price – meaning the same order when purchased through Foodhub is often up to 15% less than ordering through our rivals. Last year we estimate that we saved consumers, when compared directly to the prices of our rivals, £1.9 million* on the cost of their favourite takeaway meals*.

“Moreover, compared to other delivery services who charge takeaway establishments commission on orders and deliveries for use of their service, we can save the average takeaway partner £2,250** a month by not charging them commission - that’s approximately £30,000 extra in their till every year.”

Foodhub is one of the UK’s biggest takeaway delivery platforms with over 20,000 partners across the UK. Available online or via the easy to use mobile app – Foodhub has a wide range of takeaways and restaurants on its books.