Are Food Delivery Services Still Worth It in 2022?

I have deliveroo, doordash accounts. When it started I thought it was pretty cool, like $5 to not go pick it up yourself.

Nowadays, I've found every item on menu is 50c-$2 more than in store for most restaurants. The delivery is up, to get you to buy their pass. But even with pass, they add a new 10% Service fee.

For a $70 order in store, I'm now paying about $90 delivered. I would very much drive 5min to pick up for $20.

Every now and then you get the 10% off GCs, which kinda covers the Service fee not the rest. Then sometimes promos where having a GC balance makes you ineligible (doordash)

What do you think? Are the golden days gone? Are there other good ways to use these?

I'm looking at the Deliveroo 20% cashback. I think it may let me break even, but I still have 150 on account not used yet because I keep end up going to pick up to save $.

ETA: Seems DD have unlimited fees but DR at least cap it at $4. And half on DR pass. So possibly some restaurants will be worthwhile on DR pass depending on the markup. I'm giving DD the boot tho, $25 extra per dinner order.

Comments

  • +73

    Are Food Delivery Services Still Worth It 2022?

    Food Delivery Services exist for people who have the money to "pay for convenience".

    Those who are willing to pay for that convenience will think it's worth it.

    Those who aren't .. well… go it themselves.

    • +7

      Just thinking to before these. Restaurants themselves would either have or not have Delivery. If they do, they'd charge less than what these guys now charge…

      • +13

        Restaurants themselves would either have or not have Delivery. If they do, they'd charge less than what these guys now charge…

        Yes, but they've now created this platform where everything is one place for customers to look at - that adds an extra level of convenience. Customers no longer have to call up each place for a menu or work out whether they offer deliver or not. They also market the platform (and that means restaurants on their get exposure). All that comes at a price that eventually ends up being paid for by the end-consumer - ie, us.

        I personally don't like using these food delivery services in general, but on the rare occasion, I would still use them.

        • +3

          Paid by the consumer but the businesses take a pretty hefty cut on their orders through these platforms around 30%.

      • +3

        Vehicle running costs have gone up a lot though.

    • -1

      Food Delivery Services exist for people who have the money to "pay for convenience".

      Food Delivery is for drunk people who can't go pickup food and don't want to hurt themselves cooking.

  • +39

    I only use it when they throw free credits at me.

    • +3

      which they conveniently do when you don't use them for some time. True OZbarginer you are mate, respect.

      • -1

        easy to please… respect for not doing anything

      • A bit of self-restraint is required when there are nights when no one in the house can be bothered cooking.

  • -6

    Horses for causes, but I don't use such services.

    • +33

      Courses :)

      • +22

        so it's not a fund raising saying?
        .

        • +20

          It sounds like a registered charity, doesn't it? (Doctors Without Borders, meet Horses For Causes)

        • Different race tracks have different surfaces, some more dirt than turf, some very dry, some more wet.
          And most horses prefer to run on specific surfaces more, so the saying is very much for race horses… "horses for courses".

    • +5

      Bone Apple Tea

  • +19

    Personally I don't use them any more.

    When they first started to become "a thing" (maybe 10 years ago?) they were great.

    I started to move off them when the service eroded … deliveries that were taking 20 to 30 minutes becoming 45 or more.

    Then the prices started jacking up via both the menu items, service fees, and delivery fees.

    It ended up where I was paying more and getting less than just doing a old school call ahead and arrange for pick up.

    • I feel this way. Except only used them for about 3yrs.
      It's not like they deliver from very far away anyway…

    • Havent ordered for a while but I generally now order 30 minutes beforehand.

  • -1

    Doordash is still viable with $65 credit per account and free dashpass, the others not so much.

  • +1

    The users are part of the problem.
    But, unfortunately, it is not only the users of these services that are impacted. The restaurants etc. appear to increase their menu prices to cover their arrangements with these delivery services, regardless if the delivery service is used or not. So everyone ends up paying more, just some more than others.

    • +1

      The users are part of the problem.

      Um, what

      • +8

        Part of the problem is the users. How that clears things up. Kthxbye

    • +1

      Delivery services charge restaurants 30%. They have no other choice than to increase their prices.

  • +3

    Ive noticed deliveroo have increased their prices across the board from all the places i used to purchase from, add in the service fee and its a good $5-10 more expensive than just getting it yourself, the 20% off deals just make it break even.

    Uber eats i find without the buy 1 get 1 free offers is the most expensive of the lot.

    Doordash with the dashpass is propably the best value as you get alot of offers and it ends up paying for itself if you use it at least once a week.

    Menulog has consistently added delivery fees for all the places i used to use that were free delivery, prices have gone up significantly across the board, and when you add the service fee it makes them almost as bad as uber eats, and the minimum delivery amounts going up alot as well make this service not worth it anymore for me.

    • I had the dashpass trial, still with the 10% Service fee it's about $10 more overall. I would'nt join a pass given only use it 2-3/mth

  • +15

    The delivery services give people the choice if they want to pay for the convenience. For others on a very tight budget, then no they are not for you.

    When it's cold and raining, I wouldn't want to go and pick up my food. I'd rather pay more to get it to my door. No chance of getting sick from whatever that's going around, no chance of getting into a car accident, don't have to find a park, and won't get wet.

    • Not sure why you got negged. You pay the premium for the convenience, that’s always been the case.

      • Probably by those who say you should never let delivery companies take advantage of small businesses, blah blah blah

    • +1

      When it's cold and raining, I wouldn't want to go and pick up my food.

      I used to use them mainly in this scenario, but noticed that the service drops massively in the rain as well. Can only assume the people delivering on bikes also want to stay out of the rain.

  • I like UberOne @ $9.99 per month.
    https://www.ubereats.com/uber-one
    Usually no delivery fee for a Food Order over $20, but still a Service Fee.

    • I use Uber One but I am a heavy user so it is cost effective for me. It used to be a lot better value before they put on the service fee idea. Things are expensive but I cbf messing around with pick up orders that aren't a ton cheaper. Also nice to save a few quid when I use an Uber

    • Agree, I use it mainly for the taxi service discount as I'll use a few per week, but removing a $9 delivery fee off a potential night in makes it worth the monthly cost just for that one night.

    • I also use uber one. Save around a hundo in fees a month with heavy usage.

  • Our local Chinese Restaurant has their own driver, so food doesn't have the 10% surcharge.

    • -1

      My local restaurant, a 3 minute walk away, announced free delivery after jacking up prices by 20% to match online platforms.

      Do you know how I don't know what they do since then?

    • +3

      local chinese is cash 10% off

      • +1

        no receipt :)

        • -2

          Order written in pencil on scraps of paper ….like women's hairdressers and certain other trades and industries.

  • +11

    mate when i wake up on a sunday arvo hungover as hell, misso putting me on blast for another weekend bender you bet i will be ordering a kfc zinger box and an extra side of wicked wings, gladly copping the 8.95 delivery and hiked up rates lmao

    • +1

      oh yeah, but when it doesn't come after an hour the pain!

      • +5

        That’s ok I’ll be sitting in the shower trying to sober up anyway

    • +4

      Jimmy have you got a air fryer, and a freezer, get some frozen chicken wings, and some frozen chips.

      It will be much faster, and cheaper.

      • +41

        Yeah but that doesn’t taste like regret

      • Faster, cheaper, and less tasty!

    • +1

      I always look at the delivery costs versus the cost of a DUI fine, loss of license etc etc. The delivery option always wins.

    • +2

      Jesus couldn't think of anything worse to ingest,.over paying for cold slop delivered, wondering why your overweight and tired all the time… The lazy fat tax

  • +3

    not worth it any more. only worth it for those who can't drive

  • -3

    Worth it, because it someone else' job.

    • +4

      Also it's the only real option when you're on the beers.

  • +8

    Never really worth it.

    e.g., Maccas:
    $15 for a meal, $5+ for delivery, $1.5 bull shit fee = $21.5
    Two prompts to tip - no
    Food takes 1 hour. If it doesn't arrive, say 5-10% of the time, you get a refund but still need to get food somewhere else.

    Use the app, get a $5 meal, or 20% off $10 spend, or don't buy if there's no good deal.

    • My 1st Maccas, ordered 7pm. Nothing, can't reach anyone either.
      11.30pm guy knocks on our door.

      • +2

        I hope you told them where to go!

        This is why I refuse to use Uber eats anymore. Far too many cases of waiting an hour, for them to quietly cancel the order on me.

        I've had a few bad drivers on DoorDash. Mainly spilling drinks in Maccas bags.

        Had a case Yesterday, where Maccas mixed the 2 food bags up for 2 orders. We got the right drinks, but someone else's food order. Fortunately, we weren't too badly under-fed, and 5 minutes on chat gave us a complete refund plus a bit extra.

        Always had excellent service when orders go wrong with DoorDash. Not the hassles we have with Menulog.

        • Menulog i think doesnt even have a help line, they just say sorry on the website, better luck next time!

          • @dbmitch: You have to E-Mail them with the issue. It takes a bit of messing about, but I've always gotten an acceptable outcome when things go wrong.

    • We get Maccas far too often …

      On Dash pass, so we get free delivery, and only 5% bull shit service fee.

      We've been surprised that prices don't seem to have moved much. The basic family box is still $29.95.

  • +2

    A five minute total drive suggests 2.5 minutes there and back. Plus a minute to get out of your car and pick up the order, so 2 minutes there and back. There's only one Vietnamese restaurant within a minute of me. McDonald's is about five minutes away. Some burger places nine minutes away. Pizza and Indian places 13 minutes away, that's 26 minutes there and back, plus dealing with traffic on the strip where all those restaurants are.

    For me though, the biggest disincentive is that most of this food tastes better when it is hot and freshly cooked. It doesn't matter if someone drives it to you or you drive it back, it won't taste as good as sitting at the table and eating it. One Indian place near me drives themselves but sells through only Uber Eats, and their food always arrives piping hot. And pizza often arrives hot because of those hot bags. Anything else though and it arrives tepid.

    • +1

      5 each way. So 15 door to door. 1 in car, 1 to pick up. Save $20. That's $40/hr earning for us still.

    • +1

      Totally. I don't use these services anymore (after lockdown necessitated them) because most of the time the food is either barely warm or is affected adversely from sitting around on a counter, in the back of somebody's car for the mysterious 1 hour ++ it takes to get to you.

      It's just easier, cheaper & a better culinary experience to plan ahead and order + pick it up at the time you know it's ready by.

      I can't believe people actually think this convenience is progress…

  • +4

    delivery fee, now a service fee, on top of higher prices for some things, unless you are sick in bed or have a broken leg or the car won't start it is cheaper to go get it yourself.

    I had one order turn up wrong, then the resend was wrong, then I got told the third time would be the last time I could order from the place - yeah, like your screw up is my fault.
    I've had a bike delivery rider carry my pizzas ON THEIR SIDE, and when I refused to take them after seeing the mess in the box he said it wasn't his fault hig bag wasn't wide enough.
    I've had deliveries turn up late, sometimes 10 - 15 minutes I can live with but when it hits the hour mark and still nothing that's a problem.

    These services were great when they started, but it is really noticable how much they have declined.

  • +1

    I get 3 $5 Menulog vouchers per week for pickup orders between 10am-4pm, I use them for picking up lunch sometimes, which makes it cheaper than ordering directly in most places.

    Having a service fee on top of the delivery fee is a joke! so I don't get anything delivered now.

  • +12

    They were never worth it.

    • As usual it's a service created for the wealthy (or at least people with more money to spare than time) that the stupid/thoughtless then embrace wholeheartedly too.

      And then they complain they can't afford to eat, because they're certain it's reasonable to be paying $60 for $6 worth of food every single meal, and shopping/cooking are too much work when there's tiktoking to be done…

  • +3

    Use the services while they give you a sign up bonus or other credit. Take advantage of that sweet venture capital money.

  • +7

    In 2020 and 2021 I used them non stop, constant credits and free promos, the ING free delivery for a month, 90 days of Deliveroo+ for free and dash pass for 3 months etc, but in the last 12 months 2 things have put me off and I no longer use them:
    1 - the service fee which is just a money grab, does not go to driver, does not go to restaurant just goes to the company
    2 - when Uber bought out priority delivery, literally pay for delivery but pay another $X to get it first.
    I ordered maccas and did not pay the priority delivery, the guy delivered it 26 mins after picking it up so was literally trash food.
    I’m now 6 months clean and feeling great

  • +1

    It's kinda subjective.
    Downside is missing out on deals and specials when using delivery.
    But, it's very much about the opportunity cost. What would you be doing instead. Sometimes when you are working long hours that time is more precious than the delivery fee.
    Also if you spend 30 mins to pick up your own food to save $6-7, no point if you then pay someone $50 an hour to mow your lawn or clean your house etc.
    And delivery is kind of a bargain, fuel is expensive, car maintenance, just adding kms to car is expensive plus risk of accidents, car park damage, even injury to save $6-7 bucks.
    Then there's the absolute agony sometimes of dealing with Mr/Ms Crappy Customer Service with attitude at the end of a long maybe tough day. I just wish that dude wouldn't pack my cold drinks on top of my hot food in my delivery order.
    What if you made a conscious decision to spend the delivery fee and spent that 30 mins maybe helping your kids with homework, call a friend, work out, connect with partner etc.

    • +2

      Tbh this is why I just stock my freezer now with "ready-to-heat" foods for days when I can't be bothered cooking.
      That being said, I'm a single person so Uber was never that economical for me (average order is probably $25-30 including all the fees/delivery costs).
      Expensive food, on top of increasingly sub-par service (long waits & cold food), means I've gradually reduced my usage over time.

      • +2

        I'm finding those supermarket pre-cooked options from the meat section a good compromise expensive but cheaper than delivered fast food and nicer and better quality as well. Easy to microwave a potato or air fry a bunch of sweet potatoes and reheat as needed.

  • Food delivery has never been 'worth it', its a price you pay for convenience…. you know Friday night just got home from work don't feel like cooking kinda day.

  • +1

    Was it ever really worth it? When we got it in our town, not only did we have to pay a delivery fee… but we also had very inflated prices of the food items themselves, I don't know if this is the same in cities though…

  • +1

    I use it at least once a week. Feel like burritos for breakfast? Beep boop, here in 20 mins. Sure I could drive to get it but I don’t want to and also saving $10 in fees isn’t worth it from a hourly pay perspective.

    It’s a convenience thing, and yes I could make it cheaper at home, but sometimes I’m busy and just want a burrito.

  • +5

    They were never really "worth it", it's a good business model to feed on the notion of "convievence".

    Uber receives 30% commission from restaurants and restaurants bump up their price on the app to reflect this. I sometimes search the app and when a burger I can get in-store for $10, uber eats app charges $13+, plus delivery, plus service fees etc…….So is a $10 burger worth $19+ at the end of the day to get it delivered to you? To me, no.

    I haven't purchased uber eats or other apps in maybe 2+ years, only buy when they give me a code and that's rare.

    Do the restaurants a favour and buy from them directly or buy with one with their own driver.

  • +4

    This site should be renamed OzCashedUp.

    So many people here pay the lazy tax and then cry “everything is getting expensive”

    • +2

      Of course we're all rich after years of eneloop dividends and the return on our AMG investments. Gotta spend that money somewhere.

    • I just assume they're all like my neighbours, who are on Centrelink and get food delivered every day.

  • I do not have a car. So yes.

  • I have ordered 5x from my local maccas on menulog.
    More expensive and the fastest delivery time was literally ( not exaggerating ) 2 hours
    they have a 1.5 / 5 star rating and are a 8 min drive away. Their ETA is always 20-40 mins.

    I stopped when I called them up and said hey its been 3 hours. They said sorry theyre busy. I said ill come pick it up, my BAC is now low enough I can drive, give me the delivery cost as a large coke.

  • +2

    Everytime I go to restaurants I see a line of delivery drivers and empty tables. So yea. I'd say they're worth it to lots of people.

    COVID forced people to install the apps and experience the convenience of it. Once people get used to it, the 20 minute drive in the cold, rain, heat.. waiting around to argue with a 12 year old because they served you half of what you ordered seems unappealing.

    Personally I pick up all my food orders.
    Delivery costs a lot more, it can take an hour and a half to show up, if they screw up it ruins the whole families dinner because even if they refund you, you have still have no dinner and hungry kids because we're not gonna wait another hour for a new order.

    But I'm not surprised it's super popular. It's not hard to make money off people's laziness.

    • +4

      This.

      Lazy to do it themselves but cry about the price. Jfc the sense of entitlement.

  • +2

    All these companies were running at losses to build marketshare like millions of dollars for the last 5 years.
    DelivR just went belly up & the rest are losing millions.
    The reality is the infrastructure & delivery costs would be well over $15 per delivery (Company fee + Driver to collect & then deliver). Obviously some gets chipped in by the restaurant but you have to be realistic and not think that $5 is going to cover it.

  • +1

    I don't understand how those food delivery companies survive. I am pretty well paid but I bauk at the prices for getting food delivered. Beyond the odd pizza it is simply a no way in hell. I guess people just aren't struggling enough yet with inflation and interest rates for them to go the way of the dodo yet.

  • +2

    Is there not a single person in this thread that works? Getting food delivered to the doorstep of your office is well worth the extra price. This means I don't have to spend time in the mornings/night before preparing cold leftovers. It's not just about the convenience - for some people it's logistically impossible to pick up the food yourself. Some days I'm so busy I barely have time to eat, let alone take an extra 30 mins going to the restaurant, standing in line, and then paying for my order.

    • +4

      I work hence why I value the money I earn, takes less time to make a sandwich for lunch and take it with me than ordering it online. So if time was really the issue ordering delivery is not the answer. But that is just me, others I work with prefer to order lunch in, I can afford to do that but it just doesn't make sense, it doesn't save time and it costs a butt load extra. If I am thinking about restaurant food I will go to the restaurant, as this is unlikely to be something I would be thinking about when snowed under with work so it isn't an issue.

      • -3

        But a fresh char-grilled lamb plate or butter chicken is better than your morning sandwich, and has more nutrition too.

        • +4

          you mean a crap load more fat and sugar and significantly less nutrition.

          • @gromit: Not necessarily. The average Australian household isn't really boasting anything that'd be considered healthy food either. Rates of obesity and diabetes show that.

            If you know about nutrition and smart with what you order, you can certainly maintain a healthy diet on restaurant food. Eg I can get a wagyu burger from Grill'd on a gluten-free keto bun. No sauce or mayo, please. That's a lot healthier than a home-made burger from the average Australian household, which would be cooked in toxic vegetable oil, shoved into a cheapie bun from Woolies and then smothered in BBQ sauce.

            Most people who bring their own lunch usually have store-bought sausage rolls or frozen pizzas. That's certainly not better than what you'd get at an established restaurant.

            • @SlavOz: The people that order the smart healthy food are the same people that would also make the smart healthy lunches. Someone that brings sausage rolls and pizza is not going to suddenly be make the healthy choices when they order.

    • Restaurant food is generally not as healthy as food you make your self. That catches up later

    • Some days I'm so busy I barely have time to eat

      Does that include the 2 hours/day (conservative estimate) you spend on ozbargain?

  • +3

    They're worth it for somebody who has accidentally inhaled burning plant vapours and is feeling very hungry but shouldnt drive under that state.

    • +1

      There is an insanity that comes with the munchies.

      • mungry and hangry

  • +2

    If you can book a taxi/ rideshare from your home to the restaurant and back AND purchase your meal at the restaurant for less than the total price offered by these apps, it is not worth it.

    Otherwise, suck it up buttercup.

    Does anyone actually think there is big money to be made by anyone delivering a $19 burger meal that costs $13 instore?

    • +2

      I don’t own a car, a conscious decision because I public transport to work and use share cars/rentals/Uber when I need to get somewhere.

      Even with all the delivery fees I’m better off, but I seriously don’t get the people who seem to think it should cost the same as the restaurant plus $4. It’s just never going to happen.

      • +1

        People just want everyone else to subsidize

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