Over the last five years, the market revenue of food delivery apps has skyrocketed by 200%. Given the widespread appreciation for the convenience of such services, the industry’s growth seems unlikely to slow down. That said, we’re not here to talk about the benefits of food delivery services, which have been covered ad nauseam. Instead, here are a few reasons why people should actually avoid using food delivery services.
1. Your money doesn’t end up supporting local businesses
Throughout the pandemic, many consumers embraced the idea of supporting neighborhood small and mid-sized enterprises (SMEs). However, if you’re trying to support them by giving them business via third-party delivery services, you should know that most local establishments only end up breaking even. This is because of commissions that can be as high as 30% or 40% of the total bill. A recent New York Times write-up has even revealed that some participating business owners have had to close shop due to slim margins.
2. Apps drastically drive up costs
In order to make up losses from the hefty commissions, many local restaurants pad their prices on food delivery apps. According to financial resource AskMoney, this can result in your final bill increasing by up to 44%. While this is understandable from the restaurants’ perspective, it is simultaneously unfair to consumers. We’ll note that some cities — like Los Angeles and Philadelphia — have implemented laws capping commission rates. But by and large the issue of inflated costs remains.
3. These services worsen costly food waste
With great power comes great responsibility, right? Unfortunately, studies have shown the power to easily order food via food apps has made people less responsible regarding waste. More specifically, people order too much food, and discard it carelessly, compounding the pressing global issues of food waste and improper trash disposal. According to eco-conscious publication 2030 Magazine, environmentalists are specifically concerned about the impact that food delivery apps have on food waste and its related plastic pollution. As of 2020, the average American family now throws out a whopping $1500 worth of leftovers every year; that amounts to more than $160 billion down the drain nationwide.
4. You may still have to go to physical stores anyway
Another reason to avoid food delivery services is the fact that they aren’t foolproof. There will be occasions when you get the wrong order, or your order is incomplete. Either way, since most third-party services only cover getting the food from the restaurant to you, additional issues are up to you to solve. This can result in your having to stop what you’re doing and drive to the restaurant — or a different restaurant — or simply making a fresh order and spending more money. These occurrences aren’t rare either. A national report shows that 24% of all third-party food delivery transactions have had an issue of this kind. Furthermore, 27% were seriously late, and 21% of orders had missing dishes.
Although the food delivery industry does have some undeniable benefits, the true cost on you, small businesses, and the environment is steep. It may occasionally be worth the extra cash for a seamless, convenient delivery. But in the long run, your wallet, your neighborhood SMEs, and the environment around you will all be better off if you avoid using food delivery services and patronize restaurants more directly.
Photo Credit: stock photo
Madison says
Sorry. No can do. I’m addicted to DoorDash!
Frank says
Len – Question of the week: How may of your readers use a food delivery service on a regular basis? Or, do you order: once a week, once a month, rarely/never… I would exclude the occasional pizza order, as that is old-school, not part of the current food deliver service trend.
Also, how many of us use the “prepare you own meal” food delivery services?
And, how may of us subscribe to a food delivery service? Not groceries, but the meat packs, wine/beer, etc.
A whole lot of potential questions. I suspect I already know the answer for most of your readership:)
Len Penzo says
Thanks, Frank. Good questions, all. Stay tuned to see which one I select for next week.