App/Online ordering platforms profiting by charging customers a “service fee”

sheramber

https://forums.moneysavingexpert.com/discussion/comment/81985635#Comment_81985635

increased cost of living is hitting businesses as well as customers.

Arunmor

Have never used the likes of Uber Eats or bought groceries online in both examples I want to see what I'm buying and I want the longest best before dates and the freshest fruit and veg. I might also add I'm a tight wad.

I'll buy my booze online hit the free P&P lower limit (if applicable), and buy south of the border to avoid the Scottish Government absurd minimum pricing regime.

the_lunatic_is_in_my_head

https://forums.moneysavingexpert.com/discussion/6666785/app-online-ordering-platforms-profiting-by-charging-customers-a-service-fee

They aren’t doing anything wrong by imposing a service fee.

They are however pretty much pointless middlemen offering little value whilst taking a large portion of the deal (the restaurants will be paying a high fee as well).

Just order with the restaurant directly.

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81985655#Comment_81985655

Not technically true… UberEats etc charge both the business and the customer but its the advertising business' decision on if they want to increase their prices to factor in the commission or sell at their normal pricing - in principle they are avoiding other cost of sales that they would have on direct orders (eg advertising, call centre staff etc) so in principle it shouldn't be a straight pass through.

Ergates

easy to make this statement but I have already stated this never being a fee before until recently (1-2 years), who picked and delivered the shopping in the past when there was no fee for this and just a delivery cost?? The business that offered the service obviously…

Previously, the costs were spread over all customers via higher prices.

Profit margins for UK supermarkets are low - the highest (in 2024) was Tesco at 4%. This means they have little room to absorb additional costs. So, either all customers pay for the picking and delivery services, or the people who use the services pay for them. It seems to me that the latter option is more fair.

The fast food apps like UberEats are parasites that suck value from both ends of the equation and offer virtually no benefit to anyone other than themselves. Just don't use them.

dumpster_fire2025

https://forums.moneysavingexpert.com/discussion/6666785/app-online-ordering-platforms-profiting-by-charging-customers-a-service-fee

All businesses charge customers for fixing their roof, or the delivery van or whatever as the costs to the business are ultimately paid by their customers. The food delivery companies are not different in this regard although as they basically operate as a middleman (they don't cook food, nor do they deliver it) their charging model is slightly different.

They could just lump the service charge into the fees they charge the businesses instead but all you're doing is changing where the entry is made on a spreadsheet. Your food will still cost £20 or whatever.