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One of Leicester's most popular eateries has ended its contract with Deliveroo over the delivery company's "ridiculous" commission rates.

Gelato Village, in St Martins Square, called out Deliveroo for increasing its commission to a "staggering" 31 per cent, which the local business says makes it impossible for it to sell its food at a profit.

The gelato shop, which ranks at number 1 for dessert in Leicester on Tripadvisor, issued a statement on Twitter condemning the rise and apologising to customers who used the service.

It stated: "Apologies to anyone who is upset we're no longer on Deliveroo. They're increasing their commission (again) to a staggering 31 per cent.

"It's not possible for a small food business to use high quality ingredients and sell at a profit with these extra costs. So we're not even going to try."

The gelateria also posted a video of a staff member removing a Deliveroo sticker from the shop front.

However, the eatery also said it wanted to encourage people to get out and support their local businesses, rather than stay at home.

Antonio De Vecchi, co-owner of Gelato Village, told Leicestershire Live: "Of course the ridiculous commission they charge makes the whole thing unsustainable for us and our customers.

"However, we are also withdrawing from the scheme as we are keen to encourage people to get out and support their local businesses, walking and living in our city instead of staying at home."

Deliveroo charges partners a fixed rate of commission, which is taken off the value of each order placed through the platform.

When the company first launched this was around 10 per cent, although it has been edging up towards 30 per cent in recent years.

Another city centre business, James Cafe Bistro, in East Bond Street, told Leicestershire Live that it had also considered leaving Deliveroo.

(Image: Mike Sewell)

However, the restaurant said it put up with the high commission costs due to customer demand, and as a means for home delivery.

Debs Oloye, co-owner of James Cafe Bistro, said: "We have been considering leaving Deliveroo, but we know that students love having our regular and vegan pancakes delivered.

"As we don't have an alternative way to deliver food orders to the door, we have no choice but to pass the high costs on to the customer."

Debs said its prices on Deliveroo were higher than a customer visiting the restaurant would be asked to pay.

poll loading How often do you use Deliveroo to order food in Leicester? 500+ VOTES SO FAR All the time Sometimes, as a treat I've never used it

Local food writer Laura Hadland said that by charging such high commission rates, Deliveroo was discouraging independent businesses from using the platform. She added that she could see the end of "restaurant quality food being available via the service.

Laura, who runs food and drink website extremehousewife.com, said: "Even when it was first established, the circa 10 per cent commission fee made Deliveroo difficult for independent restaurants to work with, but their near monopoly of the delivery market was attractive where hiring a delivery driver themselves was not feasible.

"Now that the commission rate has increased to over 30 per cent, it is hard to see how restaurants who use good quality ingredients that take time to prepare will be able to list their food on Deliveroo without making the cost to the consumer astronomical.

"While I suppose there will always be someone out there willing to pay a premium for convenience, I expect to see a trend for Deliveroo dealing with low quality, high profit margin vendors, while 'restaurant quality' food returns to the restaurant environment."

Leicestershire Live asked Deliveroo why it had increased its commission rates.

A spokesman said the company was "constantly investing in new tools and products for restaurants", such as a new data insights tool.

He added: "To support these investments and our expanded services for hungry customers, Deliveroo has reviewed our restaurant commission rates across the platform and adjusted them accordingly."