Benchmark Federal Credit Union: Evaluating the Cost of Convenience for Grocery Apps and Meal Delivery

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meal delivery apps
Image via Benchmark Federal Credit Union.
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Meal delivery apps continue to grow in popularity, changing the way many of us access food. But how much more are you paying for the convenience factor, when it comes to the delivery of essential products through apps such as Gopuff, Instacart, meal subscription services, grocery delivery services, or the purchase of certain convenience items at the grocery store?

Unfortunately, we found that the vast majority of the time, the most convenient option is also the most expensive. With delivery fees, service fees, and driver tips, it’s almost always cheaper to shop and cook yourself, or dine in your favorite restaurant, rather than opt for takeout and meal delivery. The extra costs can creep up and catch you by surprise, especially if you’re not watching for them. In fact, an article in the New York Times said delivery apps can be up to 91 percent more expensive. Now that’s significant.

Breaking down the cost of convenience

Why does convenience cost so much more? When you order through delivery apps, you may be paying a markup to multiple parties. Some restaurants even inflate the price of food delivered through apps to compensate for the delivery expenses. In researching different delivery apps, the cost of the same item from the same restaurant may vary by 20 percent or more depending on the app you use. Here’s a breakdown of the different costs you may face:

  • Cost of actual menu items you order
  • Service fee or fee charged by the delivery company for providing the service
  • Taxes on your order
  • Delivery fee on your items
  • Gratuity, which is an optional tip for the driver
  • Fee of a loyalty or subscription plan, which may give you the benefit of no delivery fees, etc.

Although other convenience services, such as grocery delivery apps, may not have those exact charges, there is still a significant upcharge for the convenience of shopping and delivery vs. shopping yourself.

The cost of convenience inside the grocery store

As we mentioned above, convenience does come with a cost. Stroll through any grocery store and you’ll see displays of bagged, ready-to-serve salads, pre-cut fruits, chopped vegetables, and ready-made meals. It may be tempting to pick up these ready-to-use items when you are short on time, but if you compare costs, you’ll find it’s considerably cheaper if you do the work yourself. In addition to a much higher cost, pre-cut fruits and veggies, as well as some other prepared foods, come with a shorter shelf life.

Time vs. Money

Giving up the luxury of convenience often means giving up a lot of your time as well. What’s more valuable to you: Your money or your time? If you prefer to spend your free time with family and friends, rather than shopping or cooking, the time savings of convenience services may be worth it for you.

On the other hand, if you have plenty of time on your hands, you can probably eliminate the extra expenses incurred from various delivery and convenience services. It all comes down to your priorities and what you can actually afford to do. Keep in mind, whether it’s the subscription cost of a convenience service or the thousands of purchases you will have made for various convenience services, the cost of convenience over the course of your life can be significant.

Need to start budgeting? Read our “7 Steps for Creating a Budget You Stick to.” Read more helpful information and financial tips monthly on the Benchmark Federal Credit Union blog.

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Rebecca Worthington is the Vice President of Community Relations at Benchmark Federal Credit Union. The only federal credit union to exclusively serve Chester County, Benchmark FCU has been serving the community for more than 80 years and is known for providing extraordinary service. To learn more about the products and services available at Benchmark FCU, visit our website at BenchmarkFCU.org. Anyone who lives, works, worships, or attends school in Chester County is eligible to join Benchmark Federal Credit Union.

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