The Hidden Cost of Outsourcing to Commission‑Based Platforms

1. Why Commission Platforms Look Attractive—At First

It’s easy to understand why many business owners turn to big platforms like Deliveroo, Just Eat or Uber Eats:

• They offer visibility and reach immediately.

• They handle logistics (delivery, payments, customer access).

• They reduce the burden of having to build your own delivery network.

But what seems like convenience comes with hidden costs — costs that accumulate, eroding profit, control, and brand identity.

2. The Real Costs: Commissions, Fees, and Margin Erosion

High Commission Rates Per Order

Platforms often take 15% to 30%+ commission per order, depending on service level, whether they provide delivery or you use your own drivers. Restaurant Success Blog+3orders.co+3Aviko Food Service+3

If the platform is handling the delivery, commissions often run higher still (sometimes 30‑35%) because you are paying both for order placement and logistics. Restaurant Success Blog+2wavegrocery.com+2

Additional Hidden Charges

Beyond the headline commission:

• Marketing / visibility fees: To appear higher in app listings or get preferential placement. Often optional, but in practice essential to get visibility. zeew.eu+1

• Payment processing & platform fees: Some platforms charge extra for credit card fees, transaction processing, or admin. wavegrocery.com+1

• Packaging / handling costs: Delivery orders often require sturdier packaging or extra measures (insulation, wrapping) which add expense. Many platforms assume the restaurant absorbs these. orders.co

Lost Control Over Prices, Brand, and Data

When you depend on commission platforms:

• You often must adjust prices or mark‑ups to account for platform fees — this can deter repeat customers or reduce competitiveness. wavegrocery.com+1

• Branding and customer experience are mediated by the platform and third‑party couriers: packaging, communication, customer service issues may reflect poorly on your business even if outside your direct control.

• Data ownership is limited: you may not get full access to customer contact info, order history, feedback. Without good data, you cannot optimise your menu, delivery radius, order timing, or inventory.

3. The Long‑Term Consequences: Why It Becomes Unsustainable

• Shrinking Margins: As commissions and hidden fees take bigger slices of each order, the profit you retain reduces. Once fixed costs (rent, wages, food cost, packaging) are accounted for, some orders may even incur a net loss.

• Dependency & Price Sensitivity: If you become heavily reliant on one or more commission platforms, you may lose flexibility and be subject to unilateral fee increases, changes in policies, or algorithmic penalties (visibility, delivery ratings) that you cannot control.

• Reduced Customer Loyalty: Customers start to associate your product with the platform rather than your brand. When they interact with the app, messaging or platform branding overshadows your business identity.

• Operational Inefficiencies: Because platforms may standardise logistics or force you to serve large zones without consideration of cost, you may log many deliveries that are inefficient or drive up costs in fuel, courier time or waste.

4. How Some Businesses Try to Offset the Costs—and Why It’s Not Enough

• Raising menu / product prices to compensate for commission. But this risks putting you out of line with local competition and may deter customers.

• Limiting platform use to high‑margin items only, or offering a “platform menu” with fewer items. This can preserve margin, but may shrink breadth of offering.

• Negotiating lower commission rates—possible for large or chain businesses, but typically not for smaller or newer ones. Often platforms grant volume‑based discounts but still impose base fees.

These mitigations help, but often don’t address the core issue: losing control over logistics, costs and the customer experience.

5. How Fox Delivery Offers A Better Path

Fox Delivery is built for businesses in Dublin that want fast, reliable delivery—without surrendering control or margin to opaque commission platforms.

✅ Transparent, Flat‑Rate Fees

With Fox, you see upfront what you pay. No hidden commission tiers, no surprise marketing fees. The cost structure is clear so you can predict profitability per order.

✅ Operational Excellence

Fox specialises in short‑radius deliveries, optimised routing, and well‑trained couriers. That means lower costs per delivery and better consistency vs generic third‑party delivery systems that spread resources thinly.

✅ Data & Brand Control

While Fox may rely on integrations rather than building your own dashboard, you retain your customer data, feedback, delivery timings. You decide on your packaging, pricing, how you communicate, how your brand is represented.

✅ Flexibility & Scalability

Fox works well whether you are doing a few deliveries per day or many. Scaling with volume doesn’t force you into higher commission bands or cost structures that erode profit.

6. What to Consider If You’re Using (or Considering) Commission Platforms

Question	What to Ask Yourself
What is your net margin after paying all platform commissions and fees?	Calculate all costs — commission, packaging, processing, delivery handling.
How much customer data do you control?	Are you getting feedback, contact info, delivery performance?
How consistent is the brand and customer experience?	How are packages handled, how are delays communicated, what’s the courier’s behaviour?
What portion of your sales depend on platform orders vs direct?	The more you rely on platforms, the more vulnerable you are to fee changes.

7. Conclusion: Outsourcing Convenience Comes at a Cost

In the short term, platforms like Just Eat, Deliveroo, Uber Eats etc. may feel like easy growth channels. But when you factor in high commissions, lack of control, hidden fees, and limited brand/customer data, the long‑term cost can be steep.

For Dublin businesses focused on sustainable growth and healthy profit:

• Consider reducing dependence on commission‑based platforms.

• Partner with a courier service like Fox Delivery that offers transparent fees, preserves brand experience, and gives you control of data.

👉 Want to explore a more sustainable delivery model? Contact Fox Delivery today and see what your real margins would look like with independent logistics.

Frequently Asked Questions (FAQs)

Q. Are platform commissions negotiable? In some cases, yes—especially for large or high‑volume businesses. Smaller businesses often have little negotiating power.

Q. If I raise my menu prices to offset commissions, will customers accept it? They might, but it risks losing competitiveness. Price increases must be justified through quality, brand, or service—not just to absorb fees.

Q. Can I use platforms for exposure while doing direct delivery for margins? Yes—many businesses adopt a hybrid model: use platforms for reach, also push direct methods (own order channels, using couriers) to keep margins.

Q. Will switching to an independent courier like Fox be more work? Some overhead exists—for example, coordinating orders, packaging, maintaining quality. But Fox’s model aims to minimise complexity while maximising control and profit.