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Rail station outlets face clampdown on rip-off prices

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Deafdoggie

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I sell a product for £2 with a 30% markup. Just Eat sell that product for me with delivery but take 30%. Now I'm not taking any money (thus I'm working for free) or I add 30p on so I'm still making money or I add, say, 15p on to everyone's price regardless of if they ever use Just Eat or not. Just Eat make their money off the 30% so if they don't charge it they're working for free.
 
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jon0844

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Why is Just Eat taking 30% of the price of the food? They should be taking 30% of the delivery fee, and the driver 70%.

As I said, not all restaurants increase their food prices at all, but will have a minimum order amount and different delivery fees based on your spend.
 

Deafdoggie

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Why is Just Eat taking 30% of the price of the food? They should be taking 30% of the delivery fee, and the driver 70%.

As I said, not all restaurants increase their food prices at all, but will have a minimum order amount and different delivery fees based on your spend.
How can Just Eat function on 30% of the delivery fee??? You're clearly totally clueless when it comes to running a business and the costs involved. Basically the delivery fee just pays the driver and even then it doesn't equate to minimum wage, which is why they aren't employees. If you don't like the fees, don't order off Just Eat. Of course some places don't charge more, then simply charge every one more, but people don't realise it
 

jon0844

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They take 30% as a middle man service that doesn't do anything on its own (you know what I mean).

That's a lot of money as a service provider. They aren't buying, cooking or serving the food so why should they take a cut that is the same as what a restaurant like McDonald's is happy to make?

I'm pretty sure they don't pay for the uniform or bag the driver uses or their transportation. I don't know if they now pay them as employees and provide sick pay and annual leave etc, but I'm guessing not.
 

Deafdoggie

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They take 30% as a middle man service that doesn't do anything on its own (you know what I mean).

That's a lot of money as a service provider. They aren't buying, cooking or serving the food so why should they take a cut that is the same as what a restaurant like McDonald's is happy to make?

I'm pretty sure they don't pay for the uniform or bag the driver uses or their transportation. I don't know if they now pay them as employees and provide sick pay and annual leave etc, but I'm guessing not.
From our point of view, they have a much bigger Internet reach than we could ever hope to get. All the orders we get from them are customers we don't have, so it's all good business to us. And people are happy to pay the extra to get it from them. The technology they use and their Internet advertising cost them a fortune. They also give us the free terminal to accept orders on and a printer. But their reach is worth it alone for us.
 

Darandio

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It isn't just a case of a delivery fee. If I look at my local McDonalds on UberEats (as an example) the majority of food prices are marked up quite considerably.

So if I order something i'm paying an inflated price over what I would in store. A service fee is then added, this is supposed to be the charge that goes to Uber. A delivery charge is then added on top of this, i'd hope this all went to the driver but I somehow doubt it. I can understand the last two but why the first?
 

jon0844

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The driver seems to get shafted in all cases in this industry and for the likes of Uber taxis etc, but having looked into this the restaurant trade are quite unhappy with the power the delivery companies have gained, such that, despite supposed competition, they're all effectively acting like a cartel.

What's more, while they can take as little as 15%, they want to then have some exclusivity and even expect to be paid more so they can do the marketing, which a smaller restaurant might see as valuable, but must now increase its prices for. As the cost of living goes up, I'm sure less and less people will pay the higher prices for what is often relatively simple takeaway food (that isn't mean disrespectfully, but rather there used to be a difference between a takeaway shop and a 'proper' restaurant).

McDonald's adds a sizeable markup (despite an exclusive deal with Uber Eats), but some other big chains take the hit, presumably so as not to lose trade or create badwill.

It seems like a minefield and perhaps this wouldn't have happened without Covid, where restaurants became so reliant on home deliveries that they allowed ever worsening terms and conditions.

Suffice to say, I vote with my wallet and don't order from McDonald's or others that grossly overinflate their prices.
 
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