As the busiest season of the year is here and many local businesses are adapting to a new normal, takeaway delivery platform, Foodhub has called for the commission-based model to be overhauled to better support the takeaways and the consumer.
Philip Mostyn, Foodhub Chief Operating Officer, said, “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 especially in the current climate 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.'
Mostyn continued, “Here, at Foodhub, we’ve been committed to a non-commission-based business model from the outset.
“Now, more than ever, it is important that takeaway businesses are encouraged and helped to thrive. These are challenging times for everyone – with a potential recession on the horizon. We’d encourage other food delivery services to follow our lead and introduce a non-commission-based model.
“Charging up to 36% - as many commission-based takeaway delivery services do - in these times is unfair.”
Foodhub is an online food website and app that launched in 2017. There are more than 12,000 takeaways currently featured online at foodhub.co.uk and through the apps available for iOS and Android.
The company is unique in that it does not take a commission from the food establishments for each order placed. This enables them to offer better prices and deals to customers than other online food platforms.
Some takeaway’s have even taken it upon themselves to encourage their customers to use the Foodhub app, so they aren’t charged commission by their rivals. Yona, a Chinese takeaway based in Liverpool has issued a leaflet asking its customers to buy direct or through Foodhub so they can avoid additional charges in the runup to Christmas.
Mostyn added, “This year we estimate that we’ve 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 £2,550 a month by not charging them commission - that’s £31,025 extra in their till every year.”