The cost of convenience: how much does delivery really cost?

BY AMARI SUKHDEO

Have you ever been excited to camp-in and order your favourite meal for delivery, only to be taken aback by that bill? That $18 ramen suddenly balloons to $32. Why the hefty price tag? Here’s what’s happening:

Markup mayhem:

When opposed to ordering straight from the restaurant, ordering through delivery apps frequently entails a surreptitious price increase. The menu items found on these platforms are typically more expensive than those found inside. Remarkably, a recent survey found that the cost of things ordered through delivery apps may be up to 26% more than that of items ordered straight from the restaurant. A lot of customers are caught by surprise by this markup, which turns what could have been a relatively inexpensive dinner into a costly affair.

Fee fiasco:

Not only is there a markup, but there are also significant service costs added to the bill. For instance, Uber Eats determines prices based on the quantity of your order, while DoorDash charges a $3 minimum service fee in addition to a 15% service charge. These extra fees have the potential to significantly raise the overall cost of your meal, giving customers the impression that they have been taken advantage of.

Restaurant shares:

It’s not just diners who are experiencing financial hardship. Restaurants face a big competition from delivery apps, which can take up to 30% of their earnings. This is especially true for smaller businesses that depend significantly on delivery services. Restaurants may find it extremely challenging to generate a profit due to the weight of high commissions, given their already extremely narrow profit margins.

A troubling tendency is shown through data: the cost of using delivery apps is progressively going up. Fees have increased to previously unheard-of heights in recent years, leaving many customers unable to pay more for their favourite dishes. For a few, the price hike has caused them to reconsider their dining options.

At home diners, keep in mind that you have to account for the hidden expenses the next time the convenience of a takeaway menu entices you. It’s a story about: delivery workers’ financial struggles, increased rates, and outrageous surcharges. Bon appétit, with caution.

https://www.vox.com/money/24118201/food-delivery-cost-expensive-doordash-ubereats-grubhub

https://www.foodandwine.com/news/delivery-app-prices-higher-fees-2021-pandemic