In the bustling streets of the United Kingdom, where time is valuable and people have strong desires for food, delivery services have become essential for restaurants to function smoothly. Choosing the correct food delivery app can be crucial for success, whether you are a busy restaurant in the heart of London or a cloud kitchen located in Manchester.
Ranked as the third-largest online food delivery market globally, the UK boasts an estimated value of approximately $41 billion in 2023. While Deliveroo—a London-born giant—has left its mark, other players also dance to the same tune. From classic fish and chips to exotic vegan delights, these platforms connect food establishments with hungry patrons.
So, food entrepreneurs, let’s delve into the leading food delivery platforms in the UK market. These apps serve as invaluable allies in expanding your brand’s footprint and establishing connections with customers in their local communities.
1. Uber Eats
Uber Eats, founded in 2014, is well-known for its fast and reliable food delivery service. This worldwide giant has transformed the food delivery industry by enabling smooth connections between restaurants and their loyal customers. Whether you’re craving classic fish and chips or decadent gourmet vegan burgers, Uber Eats has something for everyone.
Having a dominant 27% market share in the UK shows that food vendors have adopted the convenience of using this platform for meal orders. From busy city centres to peaceful countryside areas, Uber Eats is expanding its coverage nationwide, making delicious food easily accessible with just a few taps.
Joining Fee
To join Uber Eats, restaurants pay a one-time fee of £650. This includes a welcome package, ordering software, a menu photoshoot, and setup support. The fee grants access to a vast customer base and operational tools, making Uber Eats a valuable asset for any restaurant.
2. Deliveroo
Established in London in 2013 by Will Shu and Greg Orlowski, Deliveroo has risen to prominence as a leading online food delivery service globally. Operating in 10 countries, including international locations like Kuwait, Qatar, UAE, Singapore, and Hong Kong, Deliveroo has expanded its reach beyond the UK. The company experienced significant growth during the pandemic, with lockdowns prompting increased reliance on digital food delivery platforms. Even as restrictions ease, Deliveroo’s trajectory continues to show promise.
In 2022, Deliveroo reported £1.9 billion in revenue, marking an 8.2% year-on-year increase, and reduced its net loss from £298 million in 2021 to £245 million in 2022. With a user base of 7.4 million, primarily in the UK, Deliveroo competes with industry giants like Uber Eats and Just Eat Takeaway.
Commission Model
Deliveroo operates on a commission-based model, where restaurants, cafes, and cloud kitchens partner with the platform, paying a percentage of the order value as commission. This rate varies depending on factors such as order type, location, and individual agreements with each establishment. By facilitating seamless connections between hungry customers and food providers, Deliveroo ensures efficient delivery to homes, offices, or any preferred location.
3. Just Eat Takeaway
Originating in Denmark in 2001, Just Eat ventured into the UK’s thriving food delivery scene in 2005, leveraging its tech-driven approach. Notably, innovations like the Just-Connect box for seamless business integration set it apart. Within three years, Just Eat relocated its headquarters to London and expanded its operations to the Netherlands and Ireland. Despite stiff competition, it maintains a strong presence in the UK market, thanks to its efficient aggregator model.
In 2023, Just Eat Takeaway.com reported revenues exceeding €1.3 billion in the UK and Ireland alone. With approximately 245 million orders served to 18 million active customers, its order volume nearly doubled to almost 150 million, generating £922 million in revenue. Despite a total loss of £27 million, Just Eat remains a significant player in the UK’s food delivery landscape.
Commission Structure
Just Eat applies a 14% commission on each order, making it an enticing platform for both restaurants and hungry customers alike. This fee ensures Just Eat continues to act as a friendly neighbour, delivering everyone’s favourite dishes right to their doorstep.
4. Foodhub
Foodhub serves as the essential link connecting local sellers, including neighbourhood eateries and cloud kitchens, with food enthusiasts, fostering community-driven dining. Offering a diverse array of over 29,000+ takeaway options, Foodhub reflects the dynamic nature of the UK’s culinary scene. Its distinctive fixed rental model empowers restaurants to focus on creating mouthwatering dishes.
In 2021, the UK’s agri-food sector contributed a significant £128.3 billion to the national Gross Value Added (GVA), marking a remarkable 12.3% increase from 2020. Despite challenges such as rising food prices, food insecurity persists for 15% of UK households. Against this backdrop, Foodhub’s commitment to affordability and community support remains paramount.
Commission Model
Foodhub operates on a fixed rental model, offering benefits to both restaurants and customers. This model ensures predictable costs for restaurants, enabling them to maintain competitive prices while delivering exceptional value to food enthusiasts. Whether you’re in the mood for a comforting shepherd’s pie or exotic flavours, Foodhub stands out in the UK food delivery landscape.
Navigate the UK Food Delivery Landscape
Exploring the vibrant realm of food delivery apps in the UK, we’ve uncovered a diverse array of platforms catering to sellers. From Just Eat’s tech-savvy approach to Foodhub’s community-centric ethos, these apps offer unique avenues for culinary entrepreneurs. Remember, selecting the right platform can turn a hungry customer into a devoted fan, so choose wisely as you embark on your culinary venture.
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