Food delivery commission in the UAE is a percentage of each order's value, negotiated with the restaurant at signing, and commonly reported in the range of 20 to 30 percent for orders the app delivers, with lower rates for restaurants that deliver with their own riders. Every major delivery app in the UAE uses the same shape: a negotiated percentage, a discount for self-delivery, and a list of charges around the commission that most owners only notice on the first full statement.
None of the apps publishes a fixed rate card for restaurants, so this post explains how the fees are structured, what a typical Dubai order nets you after commission and VAT, which costs sit outside the commission line, and the practical ways restaurants bring their effective rate down.
How delivery app commission works in the UAE
The largest delivery apps in the UAE cover most of the Gulf, and each one's restaurant agreement sets a commission percentage on the order subtotal. Four things move that percentage.
- Who delivers. Orders delivered by the app's riders carry the full rate. Restaurants that deliver with their own riders are typically offered a lower rate, since the platform is only providing the order and the payment.
- Your bargaining position. Chains, well-known brands and restaurants with high order volume negotiate lower rates than a single new outlet.
- Exclusivity. Agreeing to list only on one platform can lower the rate, at the cost of reach on the others.
- Visibility packages. Some agreements bundle better placement into a higher percentage, the same logic as tiered plans in other markets.
Commission is a service supplied in the UAE, so 5 percent VAT applies on top of it. A 25 percent commission is 26.25 percent of the order once VAT is added, though a VAT-registered restaurant can usually recover that input VAT in its return. Confirm the rates and VAT treatment in your own agreement; they are the only numbers that count.
The other apps: the same shape
The market-leading marketplace app is not the only option. An international app with its own rider network operates across the UAE, and a food delivery service runs inside the ride-hailing super app most residents already have installed. All of them negotiate commission per restaurant, all offer a lower rate for self-delivery, and all run customer subscription programmes that waive delivery fees, which they fund partly by steering volume to restaurants on higher tiers.
| Platform type | Commission model | Self-delivery option | Customer subscription | Typical extra costs |
|---|---|---|---|---|
| Market-leading marketplace app | Negotiated percentage of subtotal, commonly reported at 20 to 30 percent, plus VAT | Yes, usually at a lower rate | Yes | Sponsored placement, restaurant-funded offers, onboarding charges in some agreements |
| International rider-network app | Negotiated percentage, in a similar range, plus VAT | Yes, at a reduced rate | Yes | Marketing packages, funded promotions, tablet or printer |
| Food delivery inside a ride-hailing super app | Negotiated percentage, in a similar range, plus VAT | Yes | Bundled in the super app's subscription | Promotions, placement |
| Direct channel (WhatsApp or store page) | Subscription plus flat per-order fee | Your own riders or a courier service | None needed | Payment gateway charges per transaction |
The figures above are ranges commonly reported by restaurant owners, not published rate cards. Treat them as a starting point for negotiation and read your contract.
What an AED 80 order nets you
Take an order with an AED 80 subtotal on a 25 percent commission with platform delivery. Commission is AED 20, VAT on commission adds AED 1, so AED 59 reaches you before cooking. Food cost at around 30 percent is AED 24, and packaging for delivery adds around AED 3. That leaves about AED 32 for rent, salaries, visas, utilities and profit.
If you also funded a "20 percent off" promotion to appear in the deals section, the customer paid AED 64, commission is charged on the discounted amount, and you receive roughly AED 47 before food and packaging, leaving about AED 20. On a dinner order that is a thin result for the work.
The same AED 80 order on your own channel costs a flat per-order fee plus payment gateway charges, which for a card payment is usually a small percentage plus a fixed fee, so around AED 3 to 4 in total. The difference per order is about AED 17 to 18, which over 600 app orders a month is roughly AED 10,000. That is why most UAE restaurants treat the apps as the way new customers find them and build a channel they own for the repeat order. Our guide to WhatsApp ordering for restaurants in Dubai and the UAE explains how that channel is set up.
Costs that sit outside the commission line
- Restaurant-funded promotions. Deals, free-item offers and first-order discounts are mostly paid by you. They are the single biggest reason an effective rate ends up five or more points above the contract rate.
- Sponsored placement. Paying to appear higher in the list for a cuisine or area, charged separately from commission.
- Onboarding and equipment. Some agreements include a setup charge, a tablet, or a printer rental.
- Refunds for errors. Missing or wrong items are refunded to the customer and often charged to the restaurant. Your packing accuracy directly affects your bill.
- Settlement timing. Payouts arrive on a cycle, often weekly or fortnightly, so you finance food, salaries and packaging for that period before the money lands.
- Packaging standards. Platform rules on tamper-evident packaging raise your per-order packaging cost compared with a pickup order.
How UAE rates compare with other markets
A 20 to 30 percent range puts the UAE in line with most of the world. Delivery apps in India are commonly in the 18 to 30 percent range, delivery apps in the US list tiers from 15 to 30 percent, and delivery apps in Southeast Asia are commonly reported around 30 percent. The UAE's distinctive factors are the 5 percent VAT on commission and the strength of self-delivery discounts, since motorbike riders on fixed salaries are a normal part of a Dubai restaurant's staff.
For the country-by-country picture, see food delivery app commission around the world. For the US tier structure in detail, which the UAE apps' visibility packages increasingly resemble, see US food delivery app commission fees for restaurants.
How to bring your effective rate down
- Negotiate with your numbers. Bring your monthly order volume and average order value to the renewal conversation. Volume is the platform's reason to cut the rate.
- Use your own riders where you can. If you already employ riders, the self-delivery rate is usually several points lower. Check that your rider capacity can handle the app's peak before switching.
- Switch promotions off on a date. Set an end date when you create any offer. Open-ended deals are the quiet killer.
- Fix the error rate. A packing checklist and a photo of each bag before it leaves cut refunds, which are a cost you control completely.
- Give every app customer your direct number. A card in the bag with a WhatsApp QR code and a small first-direct-order discount. Repeat orders on your own channel cost a flat fee instead of a quarter of the ticket.
What a direct channel costs, and how a subscription plus per-order fee compares with commission at different volumes, is laid out in commission-free online ordering: how it works and what it costs. Tezzu is one platform built for this, with a WhatsApp ordering bot on your own number, a free store page, a flat per-order fee and no commission; its published plans are for India and the US, so if you are in the UAE, check the pricing explainer and ask about availability for your country.
Compare commission with a flat per-order fee
Take last month's delivery app statement and put the commission and promotion lines next to a fixed fee per order. The pricing page shows how Tezzu's plans are structured.
See pricingFrequently asked questions
What is the delivery app commission rate for restaurants in Dubai?
The apps do not publish a fixed rate; commission is negotiated per restaurant and is commonly reported in the range of 20 to 30 percent of the order subtotal for platform-delivered orders, with lower rates for restaurants using their own riders. VAT of 5 percent applies on the commission. Your agreement is the only reliable source for your rate.
Is one UAE delivery app cheaper than the others for restaurants?
Not reliably. All of them negotiate per restaurant within a similar range, and the result depends on your volume, brand, whether you self-deliver and whether you accept exclusivity. Compare net revenue per order from each platform on your own statements rather than relying on reported averages.
Do restaurants pay VAT on delivery app commission in the UAE?
Yes. Commission is a service supplied in the UAE and carries 5 percent VAT, so a 25 percent commission costs 26.25 percent of the subtotal. A VAT-registered restaurant can generally recover this as input VAT in its return, so keep the platform's tax invoices with your records.
How can a UAE restaurant reduce delivery app fees?
Negotiate using your order volume, move to a self-delivery rate if you employ riders, set end dates on all funded promotions, cut order errors with a packing checklist, and give every customer a direct WhatsApp ordering number so repeat orders bypass the commission. Most restaurants keep the apps for discovery and move regulars to their own channel.