Restaurants go it alone despite Deliveroo and Uber Eats fee reductions

Share :

Restaurant owners say Uber Eats and Deliveroo are still charging unsustainable commissions on delivery, with many planning to cut the cord on food delivery platforms once the coronavirus pandemic is contained.

Both platforms have cut the commissions they charge restaurants and cafes, with Uber Eats on Monday reducing its commission from 35 per cent to 30 per cent, while Deliveroo last week temporarily dropped all commissions on pick-up orders and cut its commission to 5 per cent for orders for which the restaurant provides its own delivery drivers.

Restaurants - Top4

Jessi Singh, owner of Melbourne eateries Horn Please and Daughter In Law, said Uber Eats and Deliveroo had become a “necessary evil” for the industry but added Uber Eats’ trimmed commission of 30 per cent was still not sustainable for restaurants.

Mr Singh’s restaurants are still listed on the delivery platforms but he is encouraging customers to bypass them by offering a 30 per cent discount if they pick up or rely on internal staff to deliver.

“We will keep doing our own delivery even when this is over,” he said. “A lot of restaurants like me will start employing our own drivers. The reason these apps came in is a lot of Australians didn’t want to do these jobs, maybe after this is over people will say ‘a job is a job’.”

The trend of bringing deliveries in-house has picked up during the pandemic, with a growing number of restaurants opting to deliver the food themselves or encouraging customers to pick up food.

Sydney restaurant group Merivale, helmed by billionaire entrepreneur Justin Hemmes, is using its own staff to do deliveries, while in Melbourne, restaurants including Bistro Gitan, Horn Please and Daughter In Law have tried to get patrons to order directly rather than through global platforms such as Uber Eats and Deliveroo.

French restaurant Bistro Gitan is offering delivery hampers and pick-up, and co-owner Edouard Reymond said the commission cut by food delivery platforms had come too late.

“If I was Uber Eats I would have cut commissions as soon as this happened, if they had come to the table a lot of restaurants would have used their platform first,” he said. “Now they have done the damage to themselves and a lot of restaurants have worked out how to do it themselves.”

Mr Reymond said the restaurant had worked out delivery routes and a system through trial and error.

Restaurants - Top4

“The first week we did it was chaos,” he said. “But we learned from our mistakes and this weekend we did 250 deliveries and it worked really well.”

Restaurant & Catering Association chief executive Wes Lambert said before coronavirus, Uber Eats had 60 per cent of the delivery market, while Deliveroo and Menulog made up 30 per cent and self-delivery apps 10 per cent, but the number of restaurants organising their own delivery and takeaway was increasing.

The push back from the restaurants is coming at a time when Uber Eats’ parent company, Uber, is showing signs of stress, with the company last week announcing it would cut 3,700 jobs globally, with around 100 of those jobs expected to go in Australia.

Uber Eats regional general manager for Australia, Jodie Auster, declined to comment on the job cuts and pushed back on calls for further commission reductions.

“Fundamentally, like restaurants themselves, we are a low margin business,” she said in a statement on Monday.

 The beneficiaries of the move to self-delivery have been startups like Australian platform HungryHungry, which enables restaurants to organise their own delivery.

HungryHungry was processing 10,000 orders a week before coronavirus and founder Mark Calabro said it is now over 50,000 a week.

“The demand coming at us at the moment is unprecedented,” he said. “I wouldn’t be surprised if restaurants are saying a 5 per cent cut by Uber Eats is nice but it is not enough.”

At Top4, we also support local restaurants, cafes and RSL clubs.

Restaurants - Top4

If you manage an RSL Club or own a Cafe – a restaurant then make sure you are in the #1 Google marketing platform with over 120,000 local businesses that are on Top4 to get more business.

We have exclusive and premium features which are only available for restaurants, like Menu and our Promotion module.

With our Menu feature, restaurant owners can showcase their menu on their Top4 advert. This exclusive feature for restaurants allows local customers to access to what the restaurant is selling – and even order directly from the Top4 advert.

Additionally, our Promotion module is especially beneficial for restaurants – because they can add their latest promotions and deals to attract more customers.

Best of all, by adding your business to Top4, you can start for free and there’s no need to pay commissions per order!

What are you waiting for? If you’re a business owner, add your business to Top4 now!

If you’re a consumer, by using Top4, you are helping local restaurants, cafes and RSL clubs thrive. Find your favourite local restaurants, cafes or clubs on Top4 –

Restaurants - Top4

Looking to build customer loyalty through social media? Don’t forget to add your business to

List your business, create your own digital store to sell goods and services, and share posts on social media. Promote your business on Google instantly! Should you need help with local digital marketing then view our new Google Marketing Platform and services Top4 Marketing

Get Found On Google Promote Your Website, Reach local customers today!

Our Digital Marketing Agency Services Across All Industries Include Search Engine Optimisation (SEO), Google Marketing, Website Design, Corporate Web Development,  and local location-based marketing using our own Google Marketing Platform!

Engage A Social Media Agency For Only 1/3 The Cost Of Employing A Social Media Manager…LET’S TALK!

Comments are closed.

Top4 - Made in Australia with Love