To sell on delivery apps without losing money, set the app price from what you want to keep per order: app price = (cost + what you want to keep) ÷ (1 − commission). Adding the commission percentage to your usual price is not enough, because the commission is charged on the new, higher price. On top of that, count the costs that only exist on the app: delivery packaging, promotions you pay for, and orders that get refunded.
What the app takes
Every app has its own terms and they change, so the only figure that matters is the one in your agreement. Before you list a single dish, find out in writing:
- What commission it charges, and whether it changes depending on who delivers.
- What amount it is charged on: before or after tax, before or after discounts.
- Whether there are extra charges for card processing, in-app advertising or onboarding.
- How often it pays out and what it deducts from each payout.
- Who pays when an order arrives wrong or a customer complains.
The examples in this guide use a 30% commission purely as an example. Use your own. If your prices include sales tax, do the maths on the price before tax and add the tax at the end.
Why adding the commission does not work
The most common mistake is taking your direct price and raising it by the commission percentage. If the app charges 30%, you multiply by 1.30 and assume you are even. You are not: the app takes 30% of the new price, not the old one.
The correct formula divides by what is left after the commission:
app price = (cost + what you want to keep) ÷ (1 − commission)
With a 30% commission, you divide by 0.70. It is the same logic as setting a price that hits your target margin, with the commission in place of the margin.
Worked example: a meal prep box on the app
You sell meal prep boxes directly for $11.00. Your loaded cost per box is $6.40: ingredients, container, your time, energy and waste. Direct, you keep 11.00 − 6.40 = $4.60 per box.
For the app you need a tamper seal and a bag: $0.35 more per order. Your app cost is 6.40 + 0.35 = $6.75.
What you did: raised the direct price by 30%.
| Step | Calculation | Result |
|---|---|---|
| App price | 11.00 × 1.30 | $14.30 |
| Commission (30%) | 14.30 × 0.30 | $4.29 |
| Paid out to you | 14.30 − 4.29 | $10.01 |
| You keep | 10.01 − 6.75 | $3.26 |
You keep $3.26 instead of $4.60: $1.34 less per box.
What you wanted: to keep the same $4.60 as direct.
- App price: (6.75 + 4.60) ÷ (1 − 0.30) = 11.35 ÷ 0.70 = $16.21
- You round it to $16.50.
- Check: commission 16.50 × 0.30 = $4.95; paid out 16.50 − 4.95 = $11.55; you keep 11.55 − 6.75 = $4.80.
If you sell 100 boxes a month on the app, the difference between $14.30 and $16.50 is keeping 100 × 3.26 = $326 or 100 × 4.80 = $480. That is $154 a month.
The other costs of the app
The commission is the most visible cost. It is not the only one.
Packaging. Delivery food travels further and needs containers that stay shut and do not leak. That cost is per order and only exists in this channel.
Promotions. Say the app invites you to a 20% off promotion and you fund the discount. Look at what happens to the $16.50 box. Assuming the commission is charged on the discounted price: the customer pays 16.50 × 0.80 = $13.20, the commission is 13.20 × 0.30 = $3.96, and you keep 13.20 − 3.96 − 6.75 = $2.49. To earn the same as without the promotion you need 4.80 ÷ 2.49 = 1.93 times as many orders, close to double. Join a promotion only if you believe that will happen, or if you are using it on purpose to get discovered, for a fixed period.
Refunds and mistakes. An order that arrives incomplete can end in a refund. Track how many you get each month and what they cost.
Payment charges. Check whether the app deducts card processing or other service fees from your payouts. The guide on payment fees and commissions in your price shows how to build those percentages into your cost.
What to put on the app menu
Not everything you sell directly survives the app. For each dish, ask:
- Does it travel? Fried food that goes soggy and soups that spill lead to complaints.
- Can it carry the commission? Work out the app price for each dish. If the result sits far above what competitors charge on the same app, that dish stays off.
- Is it quick to make? At peak times, slow dishes hold up every order.
A short menu of the dishes that leave you the most usually works better than your full range. You can also build bundles with high-margin items. If you add a brownie that costs you $1.10 and raise the bundle by $3.50, the commission takes 3.50 × 0.30 = $1.05 and you keep 3.50 − 1.05 − 1.10 = $1.35 more per order, for almost no extra work.
When the app is not worth it
The app is there so that people who do not know you can find you. If, after adjusting prices and the menu, you keep very little per order, compare it with channels where the same product leaves you more. At a market you pay a fixed stall fee instead of a percentage of every sale; see the guide to selling at markets and fairs. If you make packaged products, selling wholesale to shops and cafés leaves less per unit but more volume for fewer hours.
And make every app order work for you: a card in the bag with your direct ordering details can turn an app customer into a direct one, with no commission. The guide on choosing sales channels shows how to compare the app with your other channels using the same numbers.
Do it with the calculator
Put your recipe, your delivery packaging and your app's commission into the food cost calculator, and it gives you the app price you need to keep the same as when you sell directly.
Frequently asked questions
Can I charge more on the app than I do directly?
Many food businesses do, because the commission has to come from somewhere. Before you do it, read your agreement with the app in case it has conditions about pricing.
Is the commission charged on the price before or after tax?
It depends on the app and your agreement. Ask in writing and check your payout statements, because it changes how much you keep per order.
Should I join the app's promotions?
Only if you know what you keep per order with the discount applied. If you fund the discount, you may need almost twice as many orders to earn the same.
What if the right price makes me more expensive than competitors on the app?
Try a different portion or format for the app, build bundles with high-margin items, or list only the dishes that can carry the commission.