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Up to 91% More Expensive: How Delivery Apps Eat Up Your Budget
Uber Eats, DoorDash and Postmates might be convenient, but the apps are making you pay a juicy premium.
After a long day, yous accept probably done some back-of-the-napkin math and decided there was no point in going out for dinner when you could get food brought to your door for the same cost, plus a tip. And so yous fired upward a delivery app.
Too bad the numbers aren't that unproblematic.
When you gild through a commitment app, you pay multiple parties, including the commuter and the companies that offer the apps, like Uber Eats and Postmates. In some cases, you pay the restaurants extra fees also.
The markups can be downright egregious. Take Panda Limited, the fast-food chain. If you ordered a $39 Family Feast value meal using Uber Eats, your tab would exist 49 percent college than if you bought the same meal at the restaurant.
You would take to really love Panda Limited to pay this kind of premium — and that doesn't even include a tip.
The actress fees creep into your bill for various reasons. Some restaurants hike the prices of food ordered for commitment. And almost of the popular apps charge a delivery fee and cram taxation and extra service costs into a single line on the beak, making information technology difficult to notice the inflated costs.
To requite you an idea of the true cost of commitment app convenience, I tested some of the apps. Read on for what I found. (Hint: It wasn't pretty.)
I tested the four biggest competitors.
I focused my tests on DoorDash, Postmates, Grubhub and Uber Eats, the four largest delivery apps in the Usa. To compare them, I used all iv apps to make identical orders — such as the same kind of pizza — from four restaurants.
The results, for the most office, followed this trend:
How Delivery Apps Drove Up the Cost of a Subway Order
I ordered ii turkey sandwiches from a nearby Subway. Here are the details of how the costs worked out.
| Cost | Grubhub | DoorDash | Postmates | Uber Eats | Eatery |
|---|---|---|---|---|---|
| 6-inch Turkey Chest Sub (x2) | $eleven.98 | $14.78 | $14.78 | $xiv.78 | $12.58 |
| Commitment fee | $ane.99 | $1.99 | $two.99 | $3.99 | |
| Service fee | $1.29 | $1.xx | $2.42 | $2.22 | |
| Sales taxation | $ane.20 | $1.29 | $1.33 | $ane.26 | $0.63 |
| Misc. | $3 | ||||
| Total cost | $16.46 | $19.26 | $21.52 | $25.25 | $13.21 |
| Markup | 25% | 46% | 63% | 91% |
The markups on the food deliveries were 7 percent to 91 per centum more than than what you would pay if you bought the repast directly from the restaurant. Yes, you read that right.
Boy, is Uber Eats expensive. So is Postmates.
Uber Eats bills were loftier across the board, which was surprising because it offers practically the same type of service as Grubhub and DoorDash.
Merely unlike the other apps, Uber Eats charged a $three "small social club" fee when I ordered the sandwiches from a Subway. Plus it added a 15 percentage service charge and a separate $iii.99 delivery fee, which was determined by my proximity to Subway.
Meghan Casserly, a spokeswoman for Uber, said that the company'southward goal was to deliver meals to people as quickly every bit possible, and that the transparent fees covered operating expenses while adequately compensating workers.
Yet amidst the iv apps, Uber's service charges were also the most unpredictable, I found. Its delivery fees fluctuated depending on the availability of couriers when I placed an guild. That was similar to Uber's and then-chosen surge pricing for rides, which it uses to go more than people to bulldoze when rides are in high demand.
Postmates' markups were also confusing. Its commitment fees and service fees both vary widely, depending on the merchant you are ordering from. For the same Subway guild, its delivery fee was $2.99, lower than Uber'south $three.99. Only its service charge was highest at about 16.4 percentage, or $two.42.
Postmates service charges tin can skew higher in part considering information technology doesn't deliver only meals. Its couriers offering to bring you practically anything they can pick up, from a pair of sneakers to a birthday block.
Other commitment apps by and large have relationships only with restaurants, so their offerings are more limited and they charge a smaller service fee. DoorDash's service fee for the Subway order was xi percentage, and Grubhub's was five percentage.
Watch out for higher carte du jour prices.
Another thing to wait out for are food prices that are inflated to comprehend delivery expenses.
In my tests, this exercise was most evident at Panda Express. While the family value meal's normal cost was $39, the price was listed at $44.85 in Postmates and $47.x on Uber Eats, DoorDash and Grubhub.
How the Prices of a Panda Express Order Broke Down
| Cost | Grubhub | DoorDash | Postmates | Uber Eats | Eating place |
|---|---|---|---|---|---|
| Family Feast | $47.10 | $47.10 | $44.85 | $47.10 | $39 |
| Delivery fee | $one.49 | $5.99 | $2.99 | $four.99 | |
| Service fee | $four.71 | $5.18 | $9.73 | $7.07 | |
| Sales tax | $4.61 | $iv | $3.81 | $four | $3.32 |
| Total | $57.91 | $62.27 | $61.38 | $63.16 | $42 |
| Markup | 37% | 47% | 45% | 49% |
For another comparison, I created identical orders for two entrees and a smoothie from Little Szechuan, a local Chinese restaurant. The spicy spare ribs, normally $13.98 at the restaurant, cost $sixteen.98 at Uber Eats, Postmates and DoorDash.
What's going on here?
Information technology depends on the app and the eating place. DoorDash, Postmates and Uber said restaurants controlled their food prices. Grubhub said it worked with restaurants on their pricing, and though it encourages them to keep prices consequent, it allows merchants similar Panda Express to offering different prices for delivery. Big national chains also tend to requite smaller commissions to delivery apps, so menu prices are sometimes inflated for the apps to collect more commission, co-ordinate to a person at Postmates, who asked to remain anonymous.
Panda Express said its delivery prices immune it to provide delivery services nationwide. Fiddling Szechuan did not respond to requests for comment.
Or simply sidestep the cost of convenience.
After you rack up the exorbitant costs of delivery, going to a eating place to swallow or grab takeout probably feels like a bargain.
Here's another thought: Consider cooking your own repast. You may need to plan a little to purchase some groceries ahead of fourth dimension, just there are many simple weekday meals you tin can set up in a fairly brusk time. My favorite get-to is fresh chicken with a side of vegetables, roasted in my toaster oven. No tips or markups required.
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Source: https://www.nytimes.com/2020/02/26/technology/personaltech/ubereats-doordash-postmates-grubhub-review.html
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