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Comment by throwawaylalala | Hacker News Reader

Don’t they get a discount on the food? That’s how a lot of the other services make it...

Looks like from the comments below they can take out 30% of the cost of the food. Assuming average of £20/order, that's £6/order, which could work.

Still doesn't seem like a great deal for the consumer / restaurant. E.g. I'm paying £8.50 of a £22.50 order purely on delivery, and I don't even get table service...

At least where I live, typically the food that is served via deliveroo is not at all the same quantity or quality as what you get for the same price in the restaurant, so that further is unfair to the consumer.

Part of the idea is that you were already paying that £6, or more, in advertising costs the restaurant pays and that Deliveroo is more efficient at customer acquisition than the average restaurant is.

I think it's also about how you don't need the front of house elements for a delivery order. No need for extra real estate for tables, wait staff, etc. All you need is a kitchen, someone to cook the food and the ingredients.

That might be the theory. In practice, even if I click the "only on Deliveroo" option, I'm looking at a list of restaurants that spend a fortune on premises and their own marketing campaigns (including at chain level); they're selling on Deliveroo not because they don't already have high marketing and premises costs (to pass on) but because they're really not expecting enough takeaway orders to justify running their own delivery operation.

I think restaurants would be happy to pay 30% for new customer, but for subsequent orders, Deliveroo should take smaller cuts. I wonder if something like this part of agreement.

Exactly. It broadens your target market. Channel takes ~1/3rd in the software industry...

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