Food portal websites such as Just Eat and Uber Eats can charge huge commissions for the service they offer. Some food portals charge on average 15 - 20% and in some cases more.
They can be a great solution for identifying new customers. However once a customer knows you and keeps coming back, you could end up with a very large commission bill.
Upto 80% of customers who use a Food Portal, re-order from the same business. But why would you want to keep paying commission once a customer has found you and just wants to order from you?
One strategy many businesses are putting into play is the use of a food portal combined with their own custom mobile app with a built in points system.
Once a customer comes to your store, inform them that with future orders, if the customer uses your own branded app, they will receive free points. And free points mean they in effect get a discount. One they won’t get if they keep ordering from your via the food portal.
It looks like Food Portal commissions will keep on rising, we’re already seeing people being charged 30% plus and more.
And the numbers work too. If you are paying a 15% commission to a food portal for orders, you could offer your customers a 10% discount via a built in discount system via your own app and your still saving 5%!
For the typical delivery based food business, this could save you thousands per year!