Deliveroo Uber Profits and Stay in Control

Being in control of your product is king. Being in the crowded marketplace of Shoreditch Asian Restaurants and trying to stand out as the best in your category is a perpetual challenge. There is a real risk you can get on the wrong platform and get led astray from your task of being the best Asian Restaurant in Shoreditch for example. The market is saturated beyond all reckoning is there any point being lost in the Uber and Deliveroo maelstrom when they take a huge commission, limit your offering and above all can not market your venue effectively?

Cons

  1. The huge commission fee

Starting fees typically start at 30% and go up to 35% if you wish to list with multiple partners. That leaves very little room for profitability when you factor labour and food costs as well as VAT. Trying to then pay for your rent, your energy costs and your packaging. Madness.

  1. Loss of Control

If you have a busy in-dining service then switching off your delivery platform when you know Uber and Deliveroo are going to hit your search rankings becomes a double-edged sword. All menu changes have to be run via them. They also dont allow you to put your prices up to help cover the commission charges. Of course they still put up their commission rates as and when they please!

  1. Sowing the Seeds of your own Demise

For these massively loss-making companies the main objective is market dominance. Be it through the insidious use of their own dark kitchens or having a huge market share of the delivery market and then as they have been doing ratcheting up commission rates to an eye-watering level.  Essentially by working with them, you are giving them all your customers and paying them for the pleasure!

  1. Their marketing is too spread to benefit individual restaurants

There are thousands and thousands of delivery “partners” on their platform. How much do you think their marketing efforts will help the individual restaurant? Answer…not at all. There search parameters will be there to direct customers to the big boys and you will be lucky if you place in the first page even within your own postcode.

  1. If something is worth doing it is worth doing yourself

They are your customers. Make sure you give them the service you want to give them. Don’t direct them onto someone else’s platform. They are precious. Give them the personalised service they deserve. Pay less to do so!

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