European Food Delivery: Keeping It Local

The Hidden Economics of Your Dinner Order

When you open a food delivery app and order dinner, you are making a choice that ripples far beyond your kitchen. The platform you choose determines how much the restaurant keeps, whether the delivery rider has employment rights, where the company pays its taxes, and which economy captures the profit from the transaction. Food delivery has become a multi-billion-euro industry in Europe, and the question of who controls it matters more than most people realize.

The European food delivery market is projected to exceed 60 billion euros annually, making it one of the largest segments of the consumer tech economy. Yet much of the conversation around these platforms focuses on convenience and speed rather than the structural economics underneath. Understanding those economics is the first step toward making choices that support local businesses and European workers.

The Commission Problem

The central tension in food delivery is the commission model. Platforms charge restaurants a percentage of each order, typically ranging from 15% to 35%. For a restaurant operating on thin margins — and most restaurants operate on margins of 5% to 15% — a 30% commission can mean the difference between profitability and loss. Some restaurants report that they lose money on every delivery order but participate anyway because they cannot afford to be invisible on the platforms their customers use.

This dynamic creates a power imbalance. The platform controls the customer relationship, the ordering interface, and the delivery logistics. The restaurant provides the food, the brand, and the kitchen but has limited negotiating power once customers expect to find them on the app. US-headquartered platforms like Uber Eats and DoorDash have been criticized for aggressive commission structures and terms that prioritize platform growth over restaurant sustainability.

European platforms are not immune to these tensions, but regulatory pressure and cultural expectations in Europe have pushed several toward more balanced models.

European Platforms Leading the Way

Just Eat Takeaway

Headquarters: Amsterdam, Netherlands Markets: 20+ countries across Europe, plus UK, Australia, and North America

Just Eat Takeaway (JET) is the largest European food delivery company by order volume. Born from the 2020 merger of Dutch company Takeaway.com and British company Just Eat, JET has deep roots in European markets stretching back to 2000.

What distinguishes JET from US competitors is its hybrid model. In many markets, JET operates a marketplace model where restaurants handle their own delivery, and the platform simply connects them with customers. This model charges lower commissions — often around 13% to 16% — compared to the 25% to 35% typical of full-service delivery platforms. Restaurants that already have delivery riders keep more of their revenue.

JET has also invested in its own logistics network for restaurants that need delivery support, but the option to self-deliver gives restaurants meaningful choice and bargaining power. This approach has made JET particularly popular with independent restaurants that want online visibility without surrendering a third of their revenue.

As a publicly traded company on the Amsterdam Stock Exchange, JET is subject to Dutch corporate governance standards, EU regulatory oversight, and European labor law. Its tax contributions stay within the European jurisdictions where it operates.

Glovo

Headquarters: Barcelona, Spain Markets: Southern and Eastern Europe, including Spain, Italy, Portugal, Poland, Romania, Ukraine, and several others

Glovo positions itself as a multi-category delivery platform — not just food, but groceries, pharmacy items, and general retail. Founded in Barcelona in 2015, Glovo has become the dominant delivery platform in several Southern and Eastern European markets where Uber Eats and Deliveroo have less presence.

Glovo’s strength is its understanding of local markets. Rather than imposing a one-size-fits-all model across Europe, Glovo adapts its offerings to local dining cultures, retailer relationships, and regulatory environments. In Spain, for example, Glovo was among the first platforms to adapt to the 2021 “Riders’ Law” (Ley Rider), which reclassified delivery riders as employees rather than independent contractors.

Glovo also operates Glovo Local, a program specifically designed to support small and medium businesses with lower commission rates, marketing tools, and operational support. This initiative acknowledges that the platform’s long-term success depends on a healthy ecosystem of local restaurants and retailers.

In 2022, Delivery Hero (a Berlin-based company) acquired a majority stake in Glovo, further anchoring the platform within the European corporate ecosystem.

The Rider Question: Gig Work vs Employment

Perhaps no issue in the food delivery industry generates more debate than the employment status of delivery riders. The distinction matters enormously:

Gig model (independent contractors):

Riders set their own schedules and can work for multiple platforms
No guaranteed minimum wage, sick pay, or holiday pay
Riders bear costs for their own vehicles, insurance, and equipment
Platforms avoid employer obligations including social security contributions

Employment model:

Guaranteed minimum hourly wage and regulated working hours
Access to sick pay, holiday pay, and unemployment insurance
Employer contributes to social security and pension systems
Less scheduling flexibility for riders

The EU has been moving decisively toward the employment model. The Platform Work Directive, agreed upon in 2024, establishes a presumption of employment for platform workers across the EU. This means platforms must prove that riders are genuinely self-employed, rather than riders having to prove they deserve employee status. Spain’s Riders’ Law was a trailblazer in this direction, and similar legislation has followed in France, Italy, and the Netherlands.

European food delivery platforms operating under these rules contribute to social safety nets in ways that US-based gig platforms have actively resisted. When you order through a platform that employs its riders, part of what you pay funds pensions, healthcare, and unemployment insurance — the foundations of European social infrastructure.

Impact on Local Restaurants

The choice of platform has a direct impact on whether local restaurants thrive or merely survive:

Lower commissions mean restaurants can maintain their margins and reinvest in food quality, staff wages, and the dining experience
Data ownership matters — some platforms share customer data with restaurants, enabling them to build direct relationships, while others treat customer data as a platform asset
Marketing fairness determines whether independent restaurants can compete with chains for visibility in search results and recommendations
Contract flexibility allows restaurants to adjust their delivery presence seasonally or opt out without penalties

European consumer protection frameworks give restaurants more rights in their relationships with platforms. The EU’s Platform-to-Business (P2B) Regulation requires platforms to provide transparent terms, explain ranking algorithms, and offer dispute resolution — protections that do not exist in the same form in the US market.

Why Keeping It Local Matters

When you order through a European food delivery platform, the economic benefits stay closer to home:

Tax contributions remain in EU member states rather than being routed through low-tax jurisdictions outside Europe
Rider wages and social contributions flow into European social security systems
Restaurant revenues support local food supply chains, from farmers to distributors
Platform profits circulate within the European economy, funding further European innovation and employment
Regulatory compliance ensures that workers, restaurants, and consumers all benefit from EU protections

The cumulative effect is significant. Billions of euros in food delivery transactions flowing through European platforms means billions in tax revenue, social contributions, and local economic activity that might otherwise leave the continent.

Making Better Choices

You do not need to sacrifice convenience to support local economies. Next time you order delivery, consider:

Check if the restaurant offers direct ordering through its own website. Many restaurants prefer direct orders because they avoid platform commissions entirely.
Favor European platforms like Just Eat Takeaway or Glovo over US-based alternatives when direct ordering is not available.
Look for platforms that employ riders rather than relying purely on gig contractor models.
Order from independent restaurants rather than chains — they benefit most from your platform choice.
Tip fairly, recognizing that delivery work is physically demanding regardless of the employment model.

Food delivery is not going away. It has become a permanent feature of how Europeans eat. The question is whether that industry strengthens local economies and respects workers’ rights, or whether it extracts value from European communities to enrich shareholders elsewhere. The platform you choose is part of the answer.