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Using food delivery apps has become an integral part of everyday life for many households. These apps provide a convenient way to grab your next meal without having to leave your home. Whether you use these apps occasionally or frequently, you’re probably paying too much for takeout.
Uber Eats, Grubhub, and DoorDash are some of the biggest names in food delivery apps. If you’ve ordered delivery recently, you’ve probably used one of these apps. It is common knowledge that if you place an order for food to be delivered to your home, you will likely pay a service charge and a delivery charge. This is expected, and it’s the extra price you pay for convenience.
But did you know that you might be paying too much in other ways? You may also be paying a higher price for the food itself.
Businesses that partner with delivery apps pay commission fees and other fees. For this reason, each time a customer places an order through these apps, the restaurant only receives a portion of the total price paid. This is why many businesses display higher menu prices per item on delivery apps. Some items may only cost a few cents more, but others may cost $1 or more.
For example, a restaurant might list a cheeseburger for $14 on its own restaurant menu, but that same cheeseburger might cost $14.75 when ordered through a delivery app. So the next time you place a delivery order, you might want to check the prices first. If you compare the company’s usual menu prices, you might find that it’s cheaper to order directly from them rather than using an app.
Why is it important to consider the price of the food itself?
If you place a few small orders here and there, a few extra pennies or dollars might not be a big deal. However, these menu item increases could add up quickly for individuals or families who place larger orders frequently.
The extra money spent on food and delivery and service charges translates to more money spent and ultimately less money in your Bank account. For some households, these additional costs can be significant. After all, life is busy and delivery may be the best option. You will have to decide if this is a big deal for you.
Ways to save on takeout
There may be ways for you to save money on your next takeout party. Here are a few tips:
- Order directly at the restaurant. If possible, order directly from the restaurant. Doing this is a win-win because you can save money by paying accurate menu prices, and the business can save money by not paying additional fees. Some restaurants offer free delivery to local community customers.
- Place a pickup order instead of a delivery order. Another way to save money is to place a pickup order. When you use a food ordering app, you can save money by avoiding service and delivery charges. If you want to save even more money, order directly from a local restaurant and pick up your order.
- Use Delivery App Credits to your advantage. If using delivery apps has become a normal part of your routine, there’s another way you could save money. Some rewards credit cards now include monthly delivery app credits. This will allow you to get a direct discount on your order or a statement credit when charged to your eligible card.
Take-out apps can make your life easier and help you get dinner on the table faster. Just be aware that you’ll likely pay more money for the convenience of using delivery apps. You don’t have to break up with your favorite restaurant. But you may be able to save some money by adjusting some of your habits.
Don’t forget to use credit cards for restaurants and restaurants to earn rewards on your takeout spend. And if you’re looking for more ways to save money in your daily life, check out our personal finance Resources.
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We are firm believers in the Golden Rule, which is why editorial opinions are our own and have not been previously reviewed, approved or endorsed by the advertisers included. The Ascent does not cover all offers on the market. The editorial content of The Ascent is separate from the editorial content of The Motley Fool and is created by a different team of analysts.Natasha Gabrielle has no position in the stocks mentioned. The Motley Fool owns and recommends DoorDash, Inc. The Motley Fool recommends Uber Technologies. The Motley Fool has a disclosure policy.
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