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A food delivery messenger is seen in Manhattan.
Food from the restaurant of your choosing, delivered right to your door — at what cost?
Third-party food delivery is becoming the norm for American consumers, as delivery apps like Grubhub, DoorDash and Uber Eats take hold in day-to-day dining. It’s also presenting customers and restaurants with an increasingly complicated equation of service fees, delivery costs, and worker tips.
Frustrations from both sides of the table have hit the services, which have worked to protect (or achieve) profits and prop up orders while cash-strapped Americans scrutinize the checkout screen — and order totals that often add up to more than expected.
Compared to orders made directly through restaurant sites, consumers reported higher yearly increases in their total checks on third-party apps between 2022 and 2024, according to Technomic. Though Uber Eats, DoorDash, and Grubhub each promote paid memberships to reduce fees, consumers still claim to pay more on average for third-party orders, according to the food service industry research firm.
The rising costs come as more Americans watch their wallets during a period of persistent inflation.
Adding Value to the Delivery Equation
As the landscape of third-party delivery services continues to evolve, companies like Grubhub, DoorDash, and Uber Eats are striving to balance affordability with sustainability. Grubhub, owned by Just Eat Takeaway in Amsterdam, is actively exploring options to maintain fees at a reasonable level while adapting to changing market conditions.
DoorDash has focused on reducing fees for consumers in response to historic inflation, resulting in increased user activity and order frequency. Despite challenges, the company remains committed to providing a valuable service to both customers and restaurants.
Uber has seen significant growth in its delivery segment, reporting substantial earnings and improving its overall financial standing. The company emphasizes the importance of its Uber Eats platform in providing a seamless ordering experience while supporting delivery partners and covering operational expenses.
Overall, the delivery industry is facing a complex economic landscape, with companies striving to strike a balance between affordability, profitability, and customer satisfaction.
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