James Duty used food delivery apps pretty regularly until about a year ago, when the costs began hitting his wallet a little too hard.
“Food delivery was always a very luxury item,” said Duty, 24, of East Liberty. “As prices everywhere rise, this is a natural first cut for a budget.”
But, while costs have risen, the use of online food delivery apps does not appear to be waning. About 48 million Americans used food delivery apps in 2019, according to the National Institutes of Health. Fueled by the covid pandemic and growing comfort with online food delivery, that number increased to 70 million in 2024, with increased costs only slightly slowing use.
According to an October study from Lending Tree, ordering food through delivery apps like DoorDash, Uber Eats and Grubhub can increase the cost of an $11.71 meal to $21 — a nearly 80% markup. Lending Tree is a United States online marketplace that connects users with lending options.
When compared to other dining options, the markup becomes even more dramatic.
Delivery is about 280% more expensive than buying a similar frozen meal at the grocery store. It’s more than 600% more expensive than cooking a comparable meal at home, Lending Tree said.
Duty began using food delivery apps around three years ago when he began his first full-time job.
“I had a better source of income and felt like I could finally afford Uber Eats,” he said. “Then, I stopped after things got more expensive.”
Duty cut his use from once or twice a month to only calling on the apps to satisfy a specific craving or when he’s unable to pick up the food himself.
“I think this is one of the few times in history where you can get any food in the city that you want and not have to speak to anybody at all. You just tell them to leave it at your door,” Duty said. “The first couple times using it, it really does feel magical. I can see how it’s easy to fall in the trap of ordering it every day.”
Despite the increased expense, Duty said, delivery services can become an indispensable resource for people who are not able-bodied or who do not have access to reliable transportation.
Justin Pollard, a 24-year-old student at Robert Morris University, uses DoorDash about once a week.
“It’s more convenient when I have a lot of homework to do or I have a busy schedule,” Pollard said. “I just order my food from DoorDash and it saves me a lot of time.”
Even with the convenience factor, Pollard tries to keep his usage to a minimum since he lives near a variety of restaurants.
He began using delivery apps when he was 18. A freshman in college, he was living away from his mother’s cooking for the first time. He’s been using them off and on since.
“I stopped using them about three years ago and just started up again recently,” Pollard said. “I stopped using them because I didn’t have the finances to do it.”
As Pollard looks to the future after his graduation on Friday, he thinks he’ll use the apps less after he starts working in an office job. His office is located within walking distance of different food options if he feels the need to eat out, he said.
According to Lending Tree, 38% of Americans order delivery each week. Of that amount, 24% do it at least a few times weekly.
About 56% of millennials and 50% of Gen Zers get delivery at least once a week. Just 32% of Gen Xers and 12% of baby boomers do the same.
Surveys from companies like DoorDash and Lending Tree show circumstances and location are among the biggest factors determining whether someone will use an online delivery service. Those in urban areas are much more likely to order food from a third-party delivery service, as are those with busy schedules and little time to pick up food in person.
Maisie Albert is one of those people with a busy schedule recently, as she’s in the throws of finals at Duquesne University. Most of her meals have come from DoorDash the past couple of weeks.
Albert, 21, has spent most of her days, and some nights, in the library studying.
“It’s nice to not have to leave the library when you’re studying, or to have to take time to make food and go to the grocery store when you have eight finals in 10 days,” Albert said.
She began using delivery apps when she started college about two and a half years ago, she said. Because of the nature of her academic program, Albert said she is taking exams and studying throughout the semester. The demanding schedule causes her to utilize delivery apps more often than not.
To help budget her spending, Albert uses a student Dash Pass, a subscription offered by DoorDash that offers lower delivery and service fees. She also only orders from restaurants that don’t charge delivery fees and looks for sales.
Looking ahead, Albert said she likely won’t cut the service out completely after she graduates, but she expects to rely on it less.
“I feel like I wouldn’t use them as often because I wouldn’t be at the library until 11 p.m. during my normal day job,” Albert said.
Driving misconceptions
Only a fraction of these fees goes to the delivery driver.
Ann Veres, 55, of Plum puts an average of 100 miles per day on her car.
She’s on her third set of brakes for the year. It’s the price she pays for being a full-time DoorDash driver.
“I think customers are under the impression that DoorDash pays us an hourly rate plus the tips,” Veres said. “We do not get an hourly rate. Not at all.”
Veres said she gets a $2 flat fee from DoorDash per order unless there’s some sort of surge pricing to incentivize drivers. This is usually sporadic and does not offer much more than the base fee. She said each pickup offer is optional for drivers to accept.
“If (the order) comes up and it’s $2 and no tip going 10 miles, most will decline that because it’s just not worth it,” Veres said.
In those situations, drivers are operating at a net financial loss, she said. Drivers don’t get compensation for gas or car repairs since they’re considered independent contractors.
Veres has also driven for Uber Eats. On the app, customers are able to offer a tip up front and then have two hours after the food has been delivered to take it back. Veres said she stopped driving for the app because of that feature.
DoorDash offers different tiers to drivers. After a little less than a year of driving for six hours a day, Veres earned “Platinum Status,” which means she completed 100 orders in the last 30 days, averaged a 4.5 customer rating and maintained at least a 90% completion rate. This status means the app will only offer her orders with tips included.
“Before I was platinum, I was barely making $50 or $60 in a day because of the no-tip orders,” Veres said.
Veres began driving in November 2024. Her husband was laid off for six months and she began driving to supplement their income. To date, Veres has completed 2,100 deliveries, typically generating between $500 and $600 weekly by driving at least six hours a day, five days a week.
Probably the most-delivered food in the country, according to companies like Nerd Wallet, is pizza. But many pizza shops shy away from third-party delivery apps, having a longstanding tradition of doing their own deliveries.
Steve Senjan, Leechburg Pizza Company co-owner, said his shop employs its own drivers and avoids third-party apps.
“They’re too inconsistent,” he said about delivery apps.
Senjan charges a $3.25 delivery fee with orders. Unlike ordering apps, the money goes directly to drivers for gas. Senjan said, in the cases when drivers don’t get tipped for their services, they’ll at least get the fee amount.
“They’re the ones using their cars, their gas. They should get it all,” Senjan said. “We don’t take any of their tips either.”
He said delivery makes up about 35% to 40% of Leechburg Pizza’s total orders.
The fee won’t be changing any time soon, Senjan said. Each December he and his wife and co-owner, Jamie, sit down to look at the costs of their ingredients among other operational and labor costs. He said food costs have remained relatively flat in the past year and they’ve only had to tweak a few smaller costs and menu items for this coming year.
“We’ve upped quantities and portions, so we may have to tweak a few minor details but nothing across the board,” Senjan said. “Our labor is right around equal with food costs.”
George Hohman, 50, has been driving for Uber for three years. Whether it’s picking up people or food, he enjoys the freedom the job provides him.
“It’s okay money,” Hohman said. “It’s nothing great, but I get enough to live fine, but I wouldn’t call it fantastic.
“Before I started doing Uber, I had pizza delivery jobs so I’ve been doing this for a long time,” Hohman said.
He said his livelihood depends on tips, and those are completely dependent on the area and the types of orders he’s delivering.
“I’m 50 and I don’t think I’m in the best health,” Hohman said. “I can’t go work in a warehouse or something like that because I can’t handle it.”
Veres chooses to stick to deliveries in the Alle-Kiski Valley. She avoids traveling into the city if she can since high traffic volume slows her down.
Despite having an inside look at the high prices the ordering services demand, Veres orders DoorDash a couple of times a week. She said after driving around all day, she just wants to go home and unwind.
“I’m guilty of DoorDashing all day then going home and ordering DoorDash,” Veres said. “It’s expensive, but it’s (worth) the convenience.”