Start-up delivery marketplace The FoodHouse has launched with an aim to compete with Deliveroo and Just Eat by taking a smaller commission rate from operators.

Founded by Newcastle based e-commerce developers Roger Byrne and David Duff, FoodHouse charges operators 4% commission, which is capped at £60 per week.

Aimed at smaller takeaway operators, they can make us of an individual commission-free website and/or join The FoodHouse portal. The service is live in Portsmouth, Elgin, Leeds, Abingdon and Harrogate, with an aim to roll out nationwide.

Byrne said: “The idea of this portal is to substantially reduce the high costs to the restaurants and takeaways; Just-Eat and Deliveroo as they are relatively expensive for small businesses to use.

“Often, restaurants are left with no choice but to work with takeaway-referral platforms; they offer such a simple, customer-friendly solution, so it’s easy to see just why they’re so popular.

“But but if the cost of that lead-generation is excessive, it can decrease local businesses’ margins, making what is already a tough market all the more challenging.

“Restauranteurs either have to decide to absorb the fee and feel the pinch, or increase their prices to counter the costs. We hope that, by being competitive, we can protect restaurants as well as delivering a great service to consumers.”