Get the Facts: Food app fees and how to save (2024)

Whether it's an iced latte or a burrito, steak dinner or sushi, people can get a full meal delivered to your door with just a few clicks. Food delivery apps are more popular than ever, and if you can't break the habit, there are ways to save.On a sunny Tuesday afternoon on Milwaukee's East Side, the lunch rush is on.Erin Hammond, a teacher at a nearby school, is grabbing a quick bite. She opted for pick-up instead of delivery through an app."It's convenient, but it's way too expensive," she told WISN 12 News.She said she can no longer justify the price."They hide fees. So, they charge a delivery fee, but also other fees you don't see until you check out," Hammond said. Everyone we spoke with had an opinion."It's more convenient than running to go pick something up," Taylor Canitz said."The fees are crazy, too, with some of them," Reginald Felder said."Sometimes it's a little crazy because if you order something for $20 and all of the sudden, it's $50," Melissa Bodden said.These fees include service and delivery charges, plus an upcharge on restaurant menu prices.Despite all of this, business is booming for food delivery apps. According to the Business of Apps, these platforms made nearly $18 billion in revenue last year in the U.S. alone.While out driving for DoorDash, Jamel Brayloch told WISN 12 News the apps didn't slow down after the COVID-19 pandemic. "No, I think it got more popular," he said. "People are more lazy now," Industry experts agree. Associate professor Allen Li studies on-demand delivery platforms at the University of Wisconsin-Madison."It's very interesting because the pandemic actually permanently changed consumers' purchasing behavior, including ordering food online," he said. "Many consumers do like to enjoy different type of food on different days. Having the wide selection is certainly helpful."Li says the top-performing apps are Door Dash, Uber Eats and Grub Hub, but he predicts that the market will narrow to two.Susan Quam with the Wisconsin Restaurant Association says they are good for the restaurant industry, for now."Definitely the concept of people being able to enjoy restaurant quality food in their home office or another location other than the restaurant is definitely a trend that's here to stay. As we look at the costs relating to food eaten away from home, whether or not that's going to weather the storm from a pricing standpoint," she said.Delivery apps can be a lifeline for small businesses."We use Uber Eats and DoorDash as well," said Kallab Fierro with Smokin' Jacks BBQ at the 3rd Street Market Hall. He says approximately 20% of their business comes from delivery apps.Latonya Hughes, co-owner of Dawg City Dogs at 3rd Street Market Hall, agrees. She says 15% of their revenue comes from the apps.If you're looking to save on these apps, you might not have to do much at all."They try to offer promotions or zero delivery fee for some customers and they are looking at data and trying to figure out whether you are sensitive to delivery fee," Li said. According to Li, if you only order from places with no delivery fees, you're more likely to get more of these promotions.Another pro tip? Shop around. Some restaurants have their own drivers and may charge lower delivery fees."The best thing to do when youre looking to get food from a retsaurant, go to the restaurant's website or Facebook page first," said Susan Quam.And, always read the fine print. For example in the Chipotle app, you'll pay just under $10 for a chicken burrito to pick up in store. If you get it delivered through their app, you'll pay about $15 before tip. On the Door Dash app, you'll get free delivery, but pay at least $16 for a $10 burrito.Almost everyone agrees the apps are here to stay."I think they're getting more and more popular, and don't take this the wrong way, the world is getting a little more lazy," Fierro said.

MILWAUKEE —

Whether it's an iced latte or a burrito, steak dinner or sushi, people can get a full meal delivered to your door with just a few clicks. Food delivery apps are more popular than ever, and if you can't break the habit, there are ways to save.

On a sunny Tuesday afternoon on Milwaukee's East Side, the lunch rush is on.

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Erin Hammond, a teacher at a nearby school, is grabbing a quick bite. She opted for pick-up instead of delivery through an app.

"It's convenient, but it's way too expensive," she told WISN 12 News.

She said she can no longer justify the price.

"They hide fees. So, they charge a delivery fee, but also other fees you don't see until you check out," Hammond said.

Everyone we spoke with had an opinion.

"It's more convenient than running to go pick something up," Taylor Canitz said.

"The fees are crazy, too, with some of them," Reginald Felder said.

"Sometimes it's a little crazy because if you order something for $20 and all of the sudden, it's $50," Melissa Bodden said.

These fees include service and delivery charges, plus an upcharge on restaurant menu prices.

Despite all of this, business is booming for food delivery apps. According to the Business of Apps, these platforms made nearly $18 billion in revenue last year in the U.S. alone.

While out driving for DoorDash, Jamel Brayloch told WISN 12 News the apps didn't slow down after the COVID-19 pandemic.

"No, I think it got more popular," he said. "People are more lazy now,"

Industry experts agree. Associate professor Allen Li studies on-demand delivery platforms at the University of Wisconsin-Madison.

"It's very interesting because the pandemic actually permanently changed consumers' purchasing behavior, including ordering food online," he said. "Many consumers do like to enjoy different type of food on different days. Having the wide selection is certainly helpful."

Li says the top-performing apps are Door Dash, Uber Eats and Grub Hub, but he predicts that the market will narrow to two.

Susan Quam with the Wisconsin Restaurant Association says they are good for the restaurant industry, for now.

"Definitely the concept of people being able to enjoy restaurant quality food in their home office or another location other than the restaurant is definitely a trend that's here to stay. As we look at the costs relating to food eaten away from home, whether or not that's going to weather the storm from a pricing standpoint," she said.

Delivery apps can be a lifeline for small businesses.

"We use Uber Eats and DoorDash as well," said Kallab Fierro with Smokin' Jacks BBQ at the 3rd Street Market Hall. He says approximately 20% of their business comes from delivery apps.

Latonya Hughes, co-owner of Dawg City Dogs at 3rd Street Market Hall, agrees. She says 15% of their revenue comes from the apps.

If you're looking to save on these apps, you might not have to do much at all.

"They try to offer promotions or zero delivery fee for some customers and they are looking at data and trying to figure out whether you are sensitive to delivery fee," Li said.

According to Li, if you only order from places with no delivery fees, you're more likely to get more of these promotions.

Another pro tip? Shop around. Some restaurants have their own drivers and may charge lower delivery fees.

"The best thing to do when youre looking to get food from a retsaurant, go to the restaurant's website or Facebook page first," said Susan Quam.

And, always read the fine print. For example in the Chipotle app, you'll pay just under $10 for a chicken burrito to pick up in store. If you get it delivered through their app, you'll pay about $15 before tip. On the Door Dash app, you'll get free delivery, but pay at least $16 for a $10 burrito.

Almost everyone agrees the apps are here to stay.

"I think they're getting more and more popular, and don't take this the wrong way, the world is getting a little more lazy," Fierro said.

Get the Facts: Food app fees and how to save (2024)

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