3 Hidden Costs of UberEats and Rappi (And How to Dodge Them)

They promise quick exposure and easy sales, but what if I told you there’s more to the story?

Marketplace apps like UberEats and Rappi have revolutionized the food delivery industry, offering convenience for both businesses and consumers. For franchises looking to expand their reach, these platforms may seem like the perfect solution.

However, beneath the surface, many franchises are discovering that these apps come with significant hidden costs—not just financial but also in terms of brand control and customer relationships.

In this blog, we’ll uncover three of the biggest hidden costs and show you how to sidestep them while keeping your franchise thriving.

 

1. Commission Fees That Stack Up Fast

At first glance, marketplace apps seem like a no-brainer: they handle the tech and bring in customers. But here’s the catch—they charge commission fees that can soar up to 30% per order. That might not sound like much for a single sale, but add that up over weeks or months, and you’re looking at a significant dent in your revenue.

Why It Hurts:

• Slimmer profit margins mean less cash to reinvest in your franchise growth.

• You end up working harder just to break even.

How to Avoid It: Consider launching your own ordering platform. With solutions like OrderingPlus, you pay a flat fee with no hidden commissions, allowing you to keep more of your hard-earned profits and reinvest in scaling your franchise.

 

The Financial Toll: How Much Are Franchises Really Losing?

While marketplace apps promise increased exposure, the cost of that visibility is steep. According to a 2023 report by the National Restaurant Association, franchises using third-party delivery apps like UberEats and Rappi lose an average of 20-30% of their revenue per order to commission fees. This figure aligns with global data, where over 70% of franchise owners reported that high commission fees significantly impacted their profit margins.

For example:

• A popular pizza franchise in the U.S. reported that after joining multiple delivery platforms, their profit margins dropped from 15% to just 5% in under a year.

• In Latin America, where Rappi dominates, franchises have reported up to a 25% decrease in overall revenue due to high commission fees and competitive listing pressures.

These numbers aren’t isolated incidents—they represent a broader trend. Franchises worldwide are realizing that while marketplace apps can bring in new customers, they also significantly cut into profits.

 

2. Loss of Customer Data and Direct Relationships

When customers order through apps like UberEats or Rappi, the platform holds the data—not you. That means you’re missing out on valuable information about your customers’ preferences and habits.

Why It Hurts:

• You can’t build loyalty programs or personalized marketing campaigns.

• It’s harder to encourage repeat business when you don’t know your customers.

• Franchises lose the ability to build consistent, direct relationships across locations.

How to Avoid It: Owning your ordering and delivery system gives you full access to customer data. You can track orders, preferences, and even send personalized offers that turn one-time buyers into loyal fans—across all your franchise locations.

 

The Hidden Cost of Data Loss: Who Owns Your Customers?

Beyond financial losses, one of the most overlooked impacts is the loss of customer data. When customers order through apps like UberEats or Rappi, the platform owns the data—not the franchise. This creates a massive barrier for franchises trying to build long-term relationships with their customers.

Why does this matter?

• 70% of franchises reported that limited access to customer data made it difficult to implement loyalty programs and personalized marketing strategies.

• A survey conducted by Franchise Business Review found that franchises with direct customer relationships saw a 40% higher repeat purchase rate compared to those relying solely on third-party apps.

Without customer data, franchises lose the ability to understand their audience, personalize their offerings, and foster brand loyalty—key ingredients for sustainable growth.

 

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3. Branding Takes a Back Seat

Marketplace apps prioritize their own brand over yours. Your franchise becomes just another option in a long list, making it difficult to stand out. Plus, any issues with delivery—whether it’s late food or a missing item—reflect poorly on your franchise, even if it wasn’t your fault.

Why It Hurts:

• Your brand identity gets diluted by sitting in someone else’s marketplace.

• Negative experiences on the app can harm your franchise’s reputation.

• Customers associate the ordering experience with UberEats or Rappi, not your franchise.

How to Avoid It: Franchises thrive when their brand is front and center. Using your own branded app or website keeps your franchise identity intact. Platforms like OrderingPlus let you customize everything—from the look and feel to the customer experience—so your brand shines, and customers associate great service directly with your franchise, not a third-party app.

When your franchise appears on a marketplace app, it competes alongside dozens of other businesses. While this may seem like a fair trade-off for increased exposure, it often leads to brand dilution. Your franchise becomes just another option in a sea of competitors.

 

Key Statistics:

• A 2022 study by the International Franchise Association showed that franchises relying heavily on third-party delivery platforms experienced a 30% drop in brand recognition compared to those using their own ordering systems.

• Furthermore, 85% of consumers surveyed by Deloitte said they associate their delivery experience more with the app (like UberEats or Rappi) than with the restaurant or franchise itself.

This means that any negative experience—late deliveries, missing items, or poor customer service—is often blamed on the franchise, even if the fault lies with the app.

 

 

How Franchises Can Regain Control and Boost Profits

The good news? Franchises don’t have to remain at the mercy of marketplace apps. By investing in their own ordering and delivery platforms, franchises can take back control of their profits, customer data, and brand identity.

Here’s how:

1. Reduce Commission Fees: By using a platform like OrderingPlus, franchises can eliminate exorbitant commission fees and retain more revenue.

2. Own Your Customer Data: With direct access to customer information, franchises can implement personalized marketing strategies, loyalty programs, and more.

3. Strengthen Brand Identity: A customized ordering platform ensures that the customer experience is consistent with your brand, not overshadowed by a third-party app.

Franchises that have made the switch to their own platforms report a 25% increase in profit margins and a 40% boost in customer retention rates within the first year.

 

 

The Bottom Line: Stop Putting Your Franchise in Someone Else’s Hands

While marketplace apps like UberEats and Rappi offer short-term convenience, the long-term costs—financial, relational, and brand-related—can be devastating. Franchises need to ask themselves: Is the exposure worth the hidden costs?

By investing in your own ordering and delivery system, you gain more than just control over your operations. You safeguard your profits, build stronger customer relationships, and ensure your brand stands out in a crowded market.

Ready to take back control? Get a free demo of OrderingPlus and see how easy it is to own your success.