5 ms·

Deliveroo also take 30% of the food sale so I always assumed the £2.50 went to the rider, which seems like decent amount.

by dnh44 9y ago

mattmanser 9y ago
Yeah, I forgot to say that. 30% is very similar to just eat's take too. Seeing as the minimum order is invariably £10, the minimum take for deliveroo is £5 per order, but I'm guessing it's usually more like £7-£10. They'll definitely still be able to make money after a change in status.
- badestrand 9y ago
  Where have you got that 30% number from? I am pretty sure it was around 10% four years ago in most parts of western Europe and it would surprise me seeing it tripled.
  - mattmanser 9y ago
    Oh yeah, no idea why I got 30% stuck in my head.
mvc 9y ago
Are they going to make people use their local restaurant 30% more? Otherwise it's just eating the restaurant's profits (pardon the pun).
- jasoncartwright 9y ago
  30% to remove the tables & waiting staff (plus toilets, waiting area) for those customers? Seems like a decent deal.
  - mvc 9y ago
    Only if you never want to eat out or be waited on now and again.
pbhjpbhj 9y ago
Wow, 30%? So restaurants that use deliveroo I should be able to ask for at least a 20% discount for collecting food? Sounds like Groupon's modus, once the restaurants realise they're giving away such a large part of their profits surely they stop using them? Isn't it cheaper to have your own delivery people? Edit: Thinking about it, if I order pizza for £20, the company adds £2.50 for delivery. So £8.50 is being spent on delivery (?) .. a normal taxi is about £5 for that trip; an Uber or similar must be cheaper still?
- manarth 9y ago
  a normal taxi is about £5 for that trip; an Uber or similar must be cheaper Uber's fares are subsidised (59%) by their VC funding [1], so they make a poor long-term comparison. Expect them to either corner the market, at which point fares go up, or run out of runway. [1] https://motherboard.vice.com/en_us/article/9a3vye/uber-true-cost-uh-oh https://motherboard.vice.com/en_us/article/9a3vye/uber-true-...
  - T2_t2 9y ago
    The source of that article - https://www.nakedcapitalism.com/2016/11/can-uber-ever-deliver-part-one-understanding-ubers-bleak-operating-economics.html https://www.nakedcapitalism.com/2016/11/can-uber-ever-delive... - makes no sense to me. The cost of sales and operating expenses seem non-sensical. What are Uber's cost of sale? What are it's operating expenses? How are they different? If Uber takes a 20% cut, the only cost of sale I can't see is credit card costs. Everything else - including servers - is just an operating expense. More than likely the lifetime value of a ride sharing customer is huge, so rather than subsidising riders, they are likely front loading acquisition costs, and hoping to make it back in lifetime value. That seems to me a pretty darned solid strategy.

Deliveroo also take 30% of the food sale so I always assumed the £2.50 went to the rider, which seems like decent amount.

by dnh44 9y ago

Deliveroo also take 30% of the food sale so I always assumed the £2.50 went to the rider, which seems like decent amount.

mattmanser 9y ago

Yeah, I forgot to say that. 30% is very similar to just eat's take too. Seeing as the minimum order is invariably £10, the minimum take for deliveroo is £5 per order, but I'm guessing it's usually more like £7-£10. They'll definitely still be able to make money after a change in status.

badestrand 9y ago
Where have you got that 30% number from? I am pretty sure it was around 10% four years ago in most parts of western Europe and it would surprise me seeing it tripled.
- mattmanser 9y ago
  Oh yeah, no idea why I got 30% stuck in my head.

mvc 9y ago

Are they going to make people use their local restaurant 30% more? Otherwise it's just eating the restaurant's profits (pardon the pun).

jasoncartwright 9y ago
30% to remove the tables & waiting staff (plus toilets, waiting area) for those customers? Seems like a decent deal.
- mvc 9y ago
  Only if you never want to eat out or be waited on now and again.

pbhjpbhj 9y ago

Wow, 30%? So restaurants that use deliveroo I should be able to ask for at least a 20% discount for collecting food? Sounds like Groupon's modus, once the restaurants realise they're giving away such a large part of their profits surely they stop using them? Isn't it cheaper to have your own delivery people? Edit: Thinking about it, if I order pizza for £20, the company adds £2.50 for delivery. So £8.50 is being spent on delivery (?) .. a normal taxi is about £5 for that trip; an Uber or similar must be cheaper still?

manarth 9y ago
a normal taxi is about £5 for that trip; an Uber or similar must be cheaper Uber's fares are subsidised (59%) by their VC funding [1], so they make a poor long-term comparison. Expect them to either corner the market, at which point fares go up, or run out of runway. [1] https://motherboard.vice.com/en_us/article/9a3vye/uber-true-cost-uh-oh https://motherboard.vice.com/en_us/article/9a3vye/uber-true-...
- T2_t2 9y ago
  The source of that article - https://www.nakedcapitalism.com/2016/11/can-uber-ever-deliver-part-one-understanding-ubers-bleak-operating-economics.html https://www.nakedcapitalism.com/2016/11/can-uber-ever-delive... - makes no sense to me. The cost of sales and operating expenses seem non-sensical. What are Uber's cost of sale? What are it's operating expenses? How are they different? If Uber takes a 20% cut, the only cost of sale I can't see is credit card costs. Everything else - including servers - is just an operating expense. More than likely the lifetime value of a ride sharing customer is huge, so rather than subsidising riders, they are likely front loading acquisition costs, and hoping to make it back in lifetime value. That seems to me a pretty darned solid strategy.