World renowned takeaway service ‘Just Eat’ has recently come under pressure from almost one-hundred takeaway owners in the UK due to a ‘refund loophole’ that is stifling their profits. To add to this, Just Eat have been alleged to have been underpaying their staff; Instead using the money to expand their business. Operating in over twenty countries (including the US, Australia, France and Israel), can this takeaway services refund scheme result in pushing small, local businesses out of the job?
The loophole in Just Eat’s systems allow users to buy a product, have it delivered and request a refund without any evidence the customer will get a full refund. For instance, if a pizza is £7.20 and the pizza is delivered with no faults, they can say to Just Eat that the pizza is missing a topping or any other fault and get a full refund and keep the food. One of the owners Edris Nosrati who owns takeaway Lazio Pizza in Old Swan, Liverpool, said that “We are small businesses and now we are having to reduce the staff, reduce the delivery drivers, and if you do that those people are having to go and claim benefits.” Just Eat and its lying customers are causing local businesses to lose a lot of money.
We spoke to Thai Sabai, a Thai takeaway in Sleaford, and they have been using Just Eat’s services for “8 or 9 years” and they also are facing the same issues the other small takeaways. They also said that Just Eat is “A big issue [because] they don’t give the option to individually refund option”. Furthermore, Thai Sabai have “Called Just Eat many times” and this issue hasn’t been solved. Additionally, the “Commission too high” he then stated it at 14%. Which means that 14% of the orders price goes to Just Eat. Whereas the commission for their other online services is only at 7%. To add to this money grab, Thai Sabai must pay a minimum wage £9.50 plus “One pound per drop” to their drivers.
In 2021, Just Eat revealed that the company has a revenue of 3.4 billion euros. According to ‘indeed.com’ Just Eat couriers are paid £9.46 per hour, however their yearly salary starts at a minimum of £12,000. This is a very poor salary and does not fit the hourly pay they claim to pay the couriers. (Data coming from an average over 1635 employees.) £9.46 is below the UK minimum wage and an un-fair price to pay any worker.
As unemployment rises and Just Eat’s refund loophole continues to spread, will this lead to the shut down of these small businesses, increasing the numbers of unemployment in the UK. ‘Did somebody say Just Eat?’ the UK’s takeaways certainly did not.
What do you think about the Just Eat, would you still use them? Tell us in the comments below.
By Ieuan and Charlie, Year 8
Carre’s Grammar School Newsroom
Recommend0 recommendationsPublished in business, Lifestyle, News
I never use Just Eat! I always go to the restaurant directly for my take aways. Just Eat really need to fix this issue or all our fave take aways will start disappearing!
Great article boys.
Very good
Very nice
An interesting article! I’ve never used just eat (partly because they don’t deliver to my village) but this article really emphasises that you’re better off collecting your take away yourself or ordering directly from the restaurant so that all money goes to these businesses.
Very informative. Good to know what a rip off Just Eat is, 14% commission is ridiculous. Skip Just Eat and order direct from the restaurant.
Great article, and same as Jenny, we always try to go directly to the restaurant. Where we live though, the food delivery apps/companies have a monopoly which is very frustrating. There is definitely an issue there that Just Eat needs to address. Hopefully your article will be read by the powers that be and they might do something about it! Excellent writing lads
What an interesting article. I don’t use just eat either as I think it’s really important that we support small local independent businesses. I had no idea though that they were using such dodgy tactics, not good!