Tablevibe disrupts food delivery apps with 0% commission rates for restaurants

Singaporean Software-as-a-Service (SaaS) startup Tablevibe has landed in Australia with a twist. Partnering with Uber Direct, it’s bringing commission-free orders to restaurants. No, that’s not a typo.

Tablevibe offers 0% commission to restaurants and free setup

Over the past few years, we’ve seen food delivery app prices skyrocket as delivery fees go up and service fees get tacked on. There’s also the issue of food tending to be more expensive through these apps as restaurants try to cover commission costs which can be upwards of 30%.

It’s a bit of a Catch-22 because it can be pricey to offer takeaway through the apps, but a lot of restaurants also can’t afford not to be on there.

Tablevibe is looking to disrupt this model by returning to the days of ordering directly through a restaurant, but with a modern twist.

The company was launched in Singapore in 2021 by former Google business leaders, Jeroen Rutten and Mathieu Sneep, after they realised just how much restaurants were paying to be on delivery apps.

“If you spend $10 on food, the restaurant pays three dollars before it even leaves… so they came up with an idea where the restaurants don’t pay anything,” Tablevibe’s ANZ restaurant development director, Michael Teasdale, said in an exclusive interview with SmartCompany.

In the current food delivery landscape, apps like Uber and DoorDash tend to charge the restaurant as well as a service and delivery fee to the customer.

Instead, the SaaS startup sets up restaurants with webshop software for free and doesn’t charge them. When a customer orders either from its website or via a QR code, the restaurant completes the order and a partnered on-demand driver picks it up for delivery.

This means restaurants can benefit from direct ordering (like through a website or flyer conveniently slipped into a UberEats bag) but without the need to set up their own software ecosystem or hire their own drivers.

And it seems to be going well so far. Since its launch, the company has expanded in the Philippines and the Netherlands. And in 2021 the company was part of Y Combinator’s summer cohort and received $2.34 million in funding from Global Founders Capital and Velocity Ventures.

Tablevibe also confirmed with SmartCompany that since July 2021 its revenue has grown more than 500%.

How does Tablevibe make money and why would Uber partner with it?

Tablevibe says that its partnered restaurants save up to 70% in costs compared to regular food delivery apps. That leaves one wondering how it’s making money.

According to the company, it charges a service fee of 5% for the deliveries and just 2% for pickups. These costs are passed onto the customer rather than the restaurant. But it still aims to be a cheaper option for customers as well.

“Uber and DoorDash charge a customer about 10% straight up,” Teasdale said.

“We do half of that. So far us, the only way we’re going to make money is on volume of orders. We’re playing the long game.”

As for delivery partners such as Uber, Teasdale says they’re currently focused on market share and aren’t bothered by customers using another system.

“They’re about fulfilment rate and the number of drivers that are being used. So as soon as they heard that Tablevibe were here we had nothing but great support from the Uber Direct team,” Teasdale said.

“Tablevibe is one of the latest innovative tech companies fully integrated with Uber Direct in Australia,” Ben Goodger, head of Uber Direct ANZ added.

“Our partnership with Tablevibe empowers eateries across Australia to offer on-demand deliveries at a low distance-based fee per order.” 

Tablevibe has already soft-launched in several eateries across New South Wales, including Arthur’s Pizza group, with an aim to expand further in 2023.