In the UK there are a number of takeaway delivery platforms, the most dominant are Deliveroo, Uber Eats and Just Eat. There are also a number of smaller platforms including Food Hub, Supper, Easy Food etc. It is important that you are on the right platforms for your business. But which ones are right for you?
Each platform offers something different so should you operate on a single or multiple platform?
Of the top 10 chains, 7 of those operate on more than one platform.
Being on the big three platforms considerably increases your chances of consumers buying from you. However it comes at a cost in terms of platform fees (vs a reduced fee for an exclusive agreement with one platform). This is less of an issue if you have been able to increase food prices to offset the platform fees.
So which platforms are right for you?
There a number of factors to consider:
Your delivery methodology - do you want the platform to do delivery?
Coverage of platform in each area you operate in
Platform fees (Review the percentage for exclusivity and across multiple platforms)
The food type bias of each platform.
Each platform has a bias to different food categories. Consider whether your restaurant fits within one platform’s food type bias. Whilst you could have a much greater share of a food type on one platform it may not be the “go to” platform for that food type. Independent takeaway venues have typically gone to Just Eat to provide the orders (with lower fees) leaving the venue to deliver on fulfillment. This is why Just Eat dominates Kebabs, Pizza and Indian food types, whilst traditional pasta restaurants and grocery retailers have favoured Deliveroo and Uber Eats.
A key influencer on your platform choice is market coverage.
Review this against your estate to identify that your preferred platform has coverage in your market area.
Whilst Deliveroo and Uber Eats have coverage in most major cities, Just Eat coverage is greater in rural areas where the restaurants themselves are responsible for delivery.
The map below details the share of venues by platform.
Deliveroo typically dominates areas such as London (Soho, Mayfair etc), Oxford, Hereford as well as the Highlands.
Just Eat overall has a greater share of venues but with particularly strong share in the south of Scotland (where it is the only provider) and mid Wales.
Uber exceeds 30% share in some parts of London
Market Share of Venues by Post Code Region
When deciding on the right platform for your business it is important to take all of the above factors into your decision.
Commission is a hugely influential factor and if you operate a single restaurant or small chain and you are willing to fulfill the delivery yourself - Just Eat will likely be a strong contender for you. However their platform bias towards the more traditional takeaway could mean people wouldn’t consider their platform for your type of restaurant.
If you operate a chain of high street restaurants, a platform which offers fulfillment would be important. In this case, review Deliveroo and Uber Eats as to which offers you the best coverage across your estate and evaluate the variance in fees between the two platforms.