Toowoomba's answer to Uber Eats has 50 eateries on board

A home-grown food delivery service is winning the fight against Uber Eats in this southeast Queensland city, with 50 local businesses on board already - almost double the number signed up with the global giant.

JINY Yi is the Toowoomba face behind a home-grown food delivery service that's taking the fight to global giant Uber Eats, and he's gaining the support of small businesses.

The University of Southern Queensland graduate's upstart company HappyToo now delivers for 50 businesses across Toowoomba, and has about 10 drivers taking the food across town.

When Mr Yi started the business early last year, he said he'd noticed Toowoomba's independent food outlets were struggling with the margins offered by Uber Eats.

He said instead of taking a 35 per cent cut from the overall price of the food, his company would deliver for $10 on top.

Jiny Yi (left) of Toowoomba startup HappyToo welcomes the support of Phat Burgers and Alan Wynn.

"I found out that small business owners have so many difficulties, because they aren't franchises so they don't have help from a head office," Mr Yi said.

"We've got around about 50 businesses on board.

"Recently, other business owners have been contacting me saying that they have used Uber Eats (but) terminated that."

Phat Burgers owner Alan Wynn resisted the temptation of Uber Eats when it was launched last year, after he realised how much its cut was from the price of the food.

"Being a small business owner in a country town, our margins are getting smaller with the price of gas and electricity," he said.

"Say I do a $100 order, so that's a lot of work. With (Uber Eats), they're taking percentages so they take all the money first and give me my 65 per cent.

"I don't think it's a great deal for the restaurant, for me it's cutting a third of the price."

Alan Wynn of Phat Burgers details his business support of Jiny Yi (left) and his Toowoomba startup HappyToo.

Mr Yi said the aim of HappyToo was to offer customers a straight-forward and convenient delivery service for their favourite eateries, and at the same time let business owners like Mr Wynn focus on their product.

"We're making our consumers and business clients happy using our service," he said.

"Alan could deliver himself, but it wastes time so I want him to focus on making a better quality burger rather than being on the road.

"It's a convenient online platform for him to receive orders and a premium delivery service."

The surge in popularity of HappyToo has coincided with a cooling of interest in Uber Eats in Toowoomba, from a restaurant standpoint.

When the company launched in the region last year, 36 businesses were on board. That number has dropped to 28, with big names like The Spotted Cow and Skewers closing their online stores.

Mr Yi said HappyToo would launch its mobile app within weeks.

Head to www.happytoo.com.au to check out the food options.