Food Delivery Prices Are Drastically Different By Location, According To A New Study

The rise of food delivery apps such as Uber Eats, Grubhub, and DoorDash has brought unprecedented convenience into our lives. Unfortunately, it has also brought unprecedented expenses as well (per Circuit). We all know the experience of ordering from one of these apps. As you select your items of choice, the total cost is clearly and conveniently displayed at the bottom of your screen, but when you go to check out, that number suddenly balloons by a shocking degree. That's because these apps tack on extra fees that significantly mark up the price. Sometimes you'll even order with a coupon and end up facing charges that outweigh the discount. Most frustrating is the fact that these extra fees aren't always explained in clear terms.

For example, Uber Eats adds a number of different fees depending on what and where you order. There's the delivery fee, which is a relatively straightforward charge to cover transportation expenses. Uber states that the charge depends on "factors like demand, your location and the availability of nearby delivery people." Then there is the vague service fee, which, according to Uber, depends on the size of your order. However, the company does not specifically state what this money is for. On top of that, you may be charged extra for small orders, restaurants that use their own couriers, and local laws providing driver benefits. It can add up fast, and the exact same meal could carry dramatically different prices depending on where you live.

The credit-building site Self conducted a survey of the 100 largest cities in the United States to determine where you'll pay the most for delivery. Using Uber Eats, DoorDash, and Grubhub, they placed the exact same McDonald's order in each city: a Quarter Pounder regular meal, a 10-piece McNugget Meal, a regular Coke, and regular fries. This order reflects some of the delivery trends noted during the height of the COVID-19 pandemic, which showed that fries were an especially popular choice. The most expensive meal in Self's survey came from Seattle, Washington, where the aforementioned order averaged $55.35 counting delivery fees. The cheapest city surveyed was Lubbock, Texas, where the same order came to $31.40.

The price in Seattle reflected a 57% markup from the in-store price of $23.53. However, 23 cities had higher markups than that. The highest was Virginia Beach, with a 65% markup, but the total cost was still less than Seattle because fast food costs more in certain cities, to begin with. Lincoln, Nebraska's 19% markup was the lowest. Food & Wine notes that Self's survey was not peer-reviewed, and there is one key factor missing from their data. They do not specify what the delivery distance was for each order, so we don't know to what degree the delivery fee influenced the total cost. Nevertheless, it seems clear that people in Seattle and Virginia Beach might benefit from selecting the pickup option when they order through apps.