Just Eat – New surcharge angers delivery customers
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Just Eat – New surcharge angers delivery customers

Food delivery service Just Eat has come under fire in the UK today following their decision to roll out a 50 pence surcharge on all deliveries.

The move follows a decision by the Treasury to ban all extra charges for payments made by card for goods and services across Britain which will come into effect on January 13. Surcharging in this way is common across the country with many business and even government departments and local councils imposing “card-handling” fees.

The move by Just Eat to introduce a blanket surcharge on all deliveries regardless of payment method has been seen by many to be a cynical move to not only bypass the new ruling but to increase the revenue it gets from the existing card charge which the company had said accounted for 13% of its total revenue in 2016. The company however said that a surcharge on all deliveries “ensures fairness for all”.

Just Eat has a customer base of 9 million people in the UK, many of whom have expressed anger at the change on social media, with one calling it “sneaky way of getting around the ban on service charges for card payments” and another saying “It just feels you’re blatantly and deliberately forcing everybody to pay an additional 50p to cover the fact you can’t charge those by card 50p”.

The company responded with a statement to say “As of 8 January 2018 we have made a change to the way restaurants are charged to process Just Eat orders – a 50p service charge will be implemented for all orders. The 50p charge simply means that along with our restaurant partners, we can continue to deliver the best possible takeaway experience”.

In comments regarding the change in card-charging rules, Economic Secretary to the Treasury Stephen Barclay, said “Rip-off charges have no place in a modern Britain and that’s why card charging in Britain is about to come to an end. This is about fairness and transparency, and so from next year there will be no more nasty surprises for people at the check-out just for using a card.

Disclosure

Dominion holds Just Eat in its Global Trends Managed Fund.


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