Agree that Deliveroo fees seem high on both ends (customer and restaurant). Wonder if this means they (a) they are inefficient (b) they have large profit margins or (c) it is actually more expensive to run than one might think. If (a) or (b), the conditions for lower priced alternatives seem high.
The answer is somewhere between A and C depending on what you call inefficiency - Assuming 20 minutes per order (3 per hour) at a minimum wage of c£9 per hour pre-holiday and any other benefits, you are talking about £3 per delivery. They need to pay more than this, as many drive and the fee needs to cover fuel, so call it £4 per delivery or something like that, it's somewhere between £3-£4 probably.
So then you add the cost of user aquisition - which is usually giving out £5 - £10 vouchers and for most of those customers to only use the service once. Clearly the first delivery is a massive loss. Then following that lots of orders are done on a free-or-low delivery cost basis (incl. Deliveroo Plus).
These companies are in a land grab still so it's low margin and high competition between them and Uber Eats. Uber Eats is technically a better cost model (i.e. more efficient) than Deliveroo assuming car delivery, as you can interleave deliveries and cab rides.
