We continue to survey the cost of food delivery services and found that since May, the costs of using them peaked drastically. However, they’re now showing signs of stabilizing and a slight decline.
The average premium (including a 20% tip) decreased to 87% in July, down from 95% in May, but it’s still above the 82% we measured in March. The takeaway is that even with the recent declines, food delivery is still expensive and cutting back on delivery remains a ripe target for consumers looking to save money.
We expect future declines in the overall costs of food delivery.
Methodology
We surveyed ten meals delivered in Minneapolis across three major platforms (DoorDash, Uber Eats, and Grubhub) to measure the costs of food delivery.
3 takeaways
- Delivery and service fees are unchanged. In May, the hidden service and delivery fees averaged $3.35, spiking up up 77% y/y. Over the past two months, these fees have remained the same.
- Initial mark-ups are 12% on average, the same as noted in May.
- Delivery premiums averaged 87% more than pick-up orders, a notable decrease from 95% in May.
Here is a summary of our July findings:
