KFC Ends Partnership with Deliveroo Over Commission Rates Disagreement

KFC Ends Partnership with Deliveroo Over Commission Rates Disagreement

A partnership between fast-food giant KFC and delivery service Deliveroo has come to an end as the two entities could not reach an agreement on commission rates. Effective October 26, 2023, customers will no longer be able to order KFC’s famous chicken through Deliveroo.

The split follows KFC’s decision to turn down an offer from Deliveroo, leading to the termination of their partnership. While Deliveroo aimed to offer KFC lower commission rates in exchange for improved service for shared customers, KFC opted not to agree to these terms.

A spokesperson for Deliveroo expressed their stance, saying, “Deliveroo’s focus is providing great value on our platform and partnering with restaurants and grocers who share the same outlook. We were pleased to be able to offer KFC the opportunity to bring down commission rates by improving their service for our shared consumers. We regret that KFC has refused to agree to these terms at this time.”

KFC, on the other hand, emphasized its commitment to its own platform, KFC Delivery, and its partnerships with rival delivery aggregators such as Just Eat Takeaway.com and Uber eats. They explained that their decision to part ways with Deliveroo was part of their strategy to ensure the right delivery options across various channels.

In a statement, KFC mentioned, “[KFC] wants to thank Deliveroo’s riders for their hard work in helping to deliver its finger-licking fried chicken to fans across the country.”

Deliveroo assured its customers that they still have access to “thousands of incredible chicken restaurants” through their platform.

This separation comes at a time when Deliveroo is increasingly focusing on grocery partnerships. The company has expanded its Hop delivery sites across London in collaboration with major grocery chains such as Morrison’s and Waitrose this year. In August, Deliveroo launched an in-app feature allowing customers to add grocery items to their restaurant takeaway orders.

Despite this change in its partnership with KFC, Deliveroo reported a 3% increase in order numbers during its third quarter, indicating continued growth in its food delivery business.

As the food delivery industry continues to evolve, the dynamics between restaurants and delivery platforms are likely to shift, reflecting the changing needs and priorities of both businesses and consumers.

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