More than a third of Londoners are unaware of the high costs associated with food delivery apps.
New research from Grafterr, a hospitality technology firm, shows that 36% of restaurant customers in London don’t realise they’re paying significantly more for their favourite takeaways on popular delivery apps.
Andrew Gibbon, Chief Operating Officer of Grafterr said: “Online food aggregators are the most popular way to order delivery in the UK, yet many customers don’t understand the cost increases.
“It’s vital for customers to know they are always paying more for delivery than dining in.”
In contrast to reality, nearly three-quarters (74%) of surveyed customers expect to pay less when ordering delivery compared to dining in.
The graph below compares the costs of a McDonald’s Big Mac meal and a Five Guys Bacon Cheeseburger when purchased in-store versus through Deliveroo, highlighting the significant price increases associated with delivery apps.
Prices also vary across delivery apps. A Five Guys Bacon Cheeseburger costs £14.80 on Deliveroo, £14.98 on UberEats, and £12.95 on JustEat, with delivery fees adding more to the total.
Grafterr’s survey of 2,000 restaurant customers across the UK highlights these findings. Businesses price their online menus higher to absorb the commissions charged by these platforms.
This, along with platform fees, service fees, and delivery costs, can increase the bill by up to 90%.
Rising costs affect not only consumers but also hospitality venues, with commission rates reaching up to 30%. This makes it hard for venues to offer savings to their customers.
In 2023, KFC left Deliveroo due to high commission costs, showing the wider impact on both consumers and businesses.
To get the best deal, consumers can order directly from the business’s online platform, dine in, or order and collect in-store for smaller orders.
Signing up for delivery platform mailing lists can also provide discount codes, with UberEats known for offering 50% off promotions.
