Tag: consumer complaints

Counting the cost of food delivery apps: Which? investigation

A Which? snapshot investigation found ordering takeaways via food delivery apps was up to 44 per cent more expensive than going directly to the restaurant, while new research from the consumer champion also reveals that app users are sometimes struggling to get a satisfactory solution when something goes wrong with their order. 

Which? researchers looked at the costs of ordering meals for between two to four people from five restaurants and cafes, both directly and on food delivery sites Deliveroo, UberEats and Just Eat. Across the five restaurants, ordering via a takeaway app proved 23 per cent (£7.14) more expensive on average than ordering directly from the restaurant.

Orders on Deliveroo were the most expensive overall, costing an average of 31 per cent (£9.91) more per order than ordering directly from the restaurant. UberEats orders cost an extra 25 per cent (£7.93), while JustEat orders were only 7 per cent (£1.56) more expensive.

JustEat did not deliver for one of the restaurants Which? looked at and on another, it applied a £7.30 discount. JustEat said it offers a price promise to help ensure customers do not pay more for food they order through its app compared to ordering via the restaurant’s online delivery service.

The most expensive order was a £43.94 Deliveroo takeaway from a burrito and taco restaurant, which cost 44 per cent (£12.29) more than ordering directly from the restaurant. Even before adding delivery and service charges, the cost of the food was 26 per cent (£8.30) more.

Prices on apps are generally set by restaurants. However, restaurants often increase the price of items when bought through the apps to cover the service fees that the apps charge them. Ordering directly from the restaurant also does not incur the delivery charges that ordering from a delivery app does.

Costs vary between apps, with each one charging different service and delivery fees.

For restaurants forced to close during national or regional lockdowns, the apps offered a lifeline to keep their businesses open. However, a number of the restaurants investigated told Which? they have had to raise their prices in the apps to account for the commissions of between 15-35 per cent they have to pay the delivery services.

The apps say their commissions are essential for running the service – for example, insurance, paying delivery riders, customer services and services offered to restaurants.

During the pandemic, people’s use of food delivery apps increased as consumers looked online for their weekly takeaway and grocery shop. But if customers are feeding a family, these higher prices can quickly pile up. Consumers may not be aware that they are paying these higher prices if they have not visited the restaurant themselves.

In Which?’s recent survey of more than 2,000 UK adults, more than half of people (56%) told the consumer champion they had used delivery apps for takeaways or groceries.

Around six in 10 people told Which? they used takeaway apps at least monthly pre-pandemic, compared with seven in 10 now. JustEat was the most widely used app, with two in five adults (39%) choosing it compared with a quarter (26%) for UberEats and one in five (20%) for Deliveroo.

This new research from the consumer champion also found that customers frequently have problems with orders and often find there is no way to effectively complain or put things right when this happens.

The most common issues with deliveries were late arrival, cold food and missing items. Others reported ruined items, as well as orders not turning up.

Six in 10 (59%) Deliveroo users surveyed told Which? they had a problem in the last 12  months, while more than half (53%) UberEats and JustEat (53%) customers reported having an issue with an order.

The most common resolution for UberEats customers was being offered a cash refund, but Deliveroo and JustEat users were more often offered credit or a voucher in the app. Some of these credits and vouchers come with expiry dates, and if consumers are not regular users, they could lose their money. JustEat said customers are asked to apply the credit to their account within 30 days, after which they are able to use it indefinitely.

Of those who had a problem, more than half of Deliveroo customers (53%) and two in five JustEat (46%) and UberEats (42%) customers found it difficult to complain the last time something went wrong, according to Which?’s survey. Only around half of those who did complain were happy with how it was resolved.

Which? believes food delivery apps should make the responsibilities of the restaurant and app clearer so customers are not at risk of losing out if things go wrong. The consumer champion heard from many people across all of the food delivery apps who found it hard to speak to someone about their order and were passed between the delivery driver, the app and the restaurant.

If a customer is due a refund, consumer law is clear that they should get it in the same way they paid out originally, unless they agree otherwise. Customers do not have to accept credit or a voucher in the app if they paid with their own credit or debit card.

Adam French, Which? Consumer Rights Expert, said: “Next time you fancy a takeaway, you should be aware that the undoubted convenience offered by a delivery app comes with a hidden additional cost. If something goes wrong with your order, you might also find yourself caught between the restaurant and the app.

“Food delivery apps should do more to make the responsibilities of the restaurant and themselves clear so consumers are not caught between the two if there’s a problem with their order.

“If customers are owed a refund for a delivery which has gone wrong, they should remember they may be entitled to a cash refund under consumer law – they don’t have to accept credit or a voucher if it isn’t what they want.”

A Deliveroo spokesperson said: “Deliveroo always aims to offer our customers great value while also delivering sustainable growth for our restaurant partners. We encourage restaurants to set the same menu prices as they offer customers when dining in, and the commission we charge is then reinvested back into our business, paying for riders’ fees, customer services and upgrading our services for restaurants.

“We have a positive track record of helping our small restaurant partners throughout the pandemic and this will continue to be our priority as restaurants look towards a full reopening.”

A JustEat spokesperson said: “Just Eat is only successful if our restaurant partners are successful.  We believe our commission rates are aligned with the value we provide to our partners and we have a track record of helping restaurants prosper.

“It’s really important to us that our customers have a positive experience when using Just Eat. Whenever we’re made aware of any customer experience that falls short of the high standards we hope to deliver, we will always investigate and take appropriate action to ensure we find a suitable solution.”

An Uber Eats spokeswoman said: “At Uber Eats, we are completely focused on ensuring that the best restaurants and the best selection of food is available to customers, delivered in an average time of less than 30 minutes.

“We have a dedicated customer service team to help customers who have issues with their orders, and we would encourage anyone who does have an issue to reach out in the Help section of the app.”

Four in five Ryanair passengers still waiting for refunds

The majority of Ryanair passengers surveyed who have asked for a refund for a cancelled flight during the coronavirus crisis are still waiting for their money back, according to new research from Which?.

Which? surveyed nearly 2,800 airline customers that had flights cancelled since mid-March as a result of the global pandemic, to find out about their experience with their airline. Of those, over 1,600 people told Which? they asked their airline for a cash refund.

Ryanair was the worst of the UK’s four biggest airlines for processing refunds for cancelled flights, with 84 per cent of those who asked for a refund telling Which? they have still not received their money back.

Just five per cent of Ryanair customers surveyed said they had their money returned to them within seven days – the time frame that EU carriers are legally obliged to process refunds within. Only one in six (16%) Ryanair customers have received a refund at all.

Ryanair customers have continuously complained to the consumer champion about the airline’s approach to processing refunds, with numerous changes to its approach to refunds confusing customers of their options.

Despite initially telling customers it was processing refunds at the beginning of the crisis, customers reported that Ryanair provided refund forms that didn’t work, before attempting to force vouchers on passengers who had specifically requested refunds. It also repeatedly changed the timeframe for receiving a refund, suggesting at one point customers may have to wait up to 12 months for their money back.

Easyjet customers also reported finding it difficult to get a refund. Just one in seven (14%) Easyjet customers received a refund within seven days, and around three in five (63%) are still waiting for their money back.

In contrast, a quarter (23%) of British Airways customers and one in five (19%) Jet2 customers are still waiting for their money back, with four in 10 (39%) BA customers receiving their money back within the legal time frame, and three in 10 (29%) Jet2 customers refunded within the seven day window.

British Airways has previously been criticised for its approach to refunding customers, removing its online form for requesting a refund and instead directing customers to a phone line where they are often unable to speak to someone due to high call volumes.

Which? recently revealed that trust in the travel industry has reached an all-time low, with data from its Consumer Insight tracker showing that trust in airlines and holiday companies has dropped to its lowest score on record in the seven years the consumer champion has collected the data, following airlines’ handling of refunds for cancelled flights.

Following the Civil Aviation Authority (CAA) announcing its investigation into airlines’ handling of refunds, Which? has launched a tool to allow consumers to report their airline to the regulator if they have been unable to get a refund for a cancelled flight, and is encouraging people to share their experiences.

Which? has also repeatedly called on the government to step in with urgent support for the industry, to allow airlines and holiday companies the financial means to refund their customers without fear of going bust, and to help restore trust in the travel industry.

Rory Boland, Editor of Which? Travel, said: “We have heard from thousands of frustrated passengers who have told us they are finding it almost impossible to get refunds they are legally entitled to from airlines, with some having waited months now without a penny returned to them.

“Some airlines are doing much better than others at refunding their customers, proving that while these are indeed difficult times for the industry, withholding customers’ money from them is simply inexcusable.

“The regulator and government cannot sit on their hands any longer. The CAA must urgently hold airlines that are brazenly breaking the law to account, and the government must set out how it will support the industry where necessary if airlines are unable to refund their customers without fear of going under.”

Time taken to refund British Airways Easyjet Jet2.com Ryanair
Within 7 days 39% 14% 29% 5%
Refund not yet received 23% 63% 19% 84%

Ryanair did not respond to Which?’s request for comment.

A spokesperson for British Airways said: “If a customer’s flight has been cancelled, they should call us to discuss their options. They can rebook, refund or choose to take a voucher to fly at a later date. Refunds can be requested at any point up to 12 months after the start date of the journey.”

A spokesperson for Easyjet said: “Customers on cancelled flights can transfer to an alternative flight free of charge or receive a voucher for the value of their booking online. Customers may also request a refund by submitting a claim in writing via a dedicated refund webform, online. We are processing refunds for customers and aim to do so in less than 28 days.”

A spokesperson for Jet2 said: “In view of the ongoing travel restrictions caused by the Covid-19 pandemic, we have taken the decision to recommence our flights and holidays programme on July 1st. The health and safety of our customers and colleagues is our absolute priority, and we are continuing to monitor the situation very closely.

“Like all other airlines and tour operators, the restrictions caused by the Covid-19 pandemic have impacted us. With aircraft grounded, our focus has been on looking after the many thousands of customers whose flights and holidays have been affected, and we are very proud to have been repeatedly praised by customers, media outlets, industry commentators and consumer organisations for how we have been treating customers in response to the pandemic.

“We are continuing to operate a fully staffed call centre, and even though our teams are subject to the same difficulties and restrictions as everyone else, they are working tirelessly to proactively contact customers in departure date order to discuss their options. We believe that contacting customers in departure date order is the fairest way to deal with this, and the feedback we have received tells us this has been the right thing to do.

“We understand that these unprecedented events have had a huge impact on our customers, and we would like to thank them for their loyalty, understanding and patience.”

Report your airline to the regulator: https://action.which.co.uk/page/s/flight-complaint