Deliveroo feasts on over half of some restaurants’ takings by charging commission on VAT, discounts and refunded meals as it ‘takes advantage’ of small firms during the Covid crisis.
Deliveroo is gobbling up more than 50 per cent of the takings at some restaurants by charging commission on VAT, discounts and even refunded meals.
With thousands of independent outlets still dependent on takeaways or home orders, many have turned to the delivery giant in an effort to keep their operations afloat.
But the company has been hit by claims that it is imposing ‘extortionate’ fees on businesses. George Kontakos, owner of family-run Greek restaurant The Olive Grove in Cambridge, accused Deliveroo and other delivery firms of taking advantage of small venues during the Covid crisis.
Under a deal agreed with the restaurant, Deliveroo charges commission of 33 per cent for orders below £25 and 30 per cent on anything higher, but a recent invoice shows The Olive Grove was billed on gross sales, including VAT and discounts, and the total fee equated to 54 per cent.
(Original article published by Daily Mail on April 25th 2021)