Why Are Food Delivery Fees Getting Higher?

UK delivery costs have risen faster than restaurant prices since 2020. The reasons are structural, not random — and most of them point to the same place.

What has actually changed

Five forces have pushed fees up:

1. End of cheap money for platforms. Uber Eats, Deliveroo and Just Eat all raised fees aggressively from 2022 onward as venture funding dried up and shareholders demanded profitability. The pre-2022 era of subsidised delivery is over.

2. Driver supply tightened. Through 2020 there was a glut of couriers; by 2023 the market had rebalanced. Higher base pay per trip, passed straight to customers as higher delivery fees.

3. Restaurant commission caps. Several markets including London introduced caps on platform commission during the pandemic. When those expired, platforms shifted some recovery from restaurants to customers via service fees.

4. Increased operating costs. Insurance, customer support, fraud prevention and tax compliance have all become more expensive. Service fees grew to cover them.

5. Surge pricing got more aggressive. Algorithms now hit harder during peak windows and back off faster off-peak, which increases the average delivery fee even when off-peak prices look fine.

What the numbers look like

A typical UK city delivery, comparing 2020 to 2026:

  • Delivery fee: £1.99 → £3.49 (average).
  • Service fee: 4-6% of basket → 8-12% of basket.
  • Small order fee: £0.99 → £1.99-£2.99.
  • Item markup: 5-10% → 10-25%.

The total cost of overhead on a £20 basket has roughly doubled.

What this means for ordering

Three behavioural responses make sense:

  • Compare apps every order. The rise has been uneven — one platform might be 20% more expensive than another for the same basket on the same day.
  • Use direct ordering more. Restaurants have not raised their direct prices nearly as fast.
  • Be selective about subscriptions. Deliveroo Plus and Uber One get more attractive as fees rise if you order frequently.

Will fees keep rising?

Probably yes, but more slowly. Platforms are now measured on profit per order rather than growth, so the easy "raise the service fee" lever has mostly been pulled. Future increases are more likely to come from:

  • Higher item markups as restaurants negotiate harder on commission.
  • More aggressive surge during peaks (the algorithm has more headroom).
  • New surcharges introduced under specific names (sustainability fee, regulatory fee).

Why did food delivery get so expensive after 2022?

Platforms shifted from growth-at-any-cost to profit-per-order, which meant raising fees, reducing promos and tightening surge algorithms. The pre-2022 subsidised era is over.

Are delivery fees going to keep rising?

Yes, but more slowly than 2022-2024. Most of the easy fee increases have been used; future rises tend to come through smaller surcharges, item markups and surge multipliers.

Why are delivery apps charging more if drivers earn the same?

Most of the fee increase has gone to the platform's bottom line, not to drivers. UK courier base pay has risen modestly since 2020; service fees and item markups have risen far more.