The Price We Pay For Convenience
Delivery apps are training us to be comfortable paying more for the same thing, but how much more?
Delivery Costs Far Exceed Carryout
Note: For how I conducted this analysis, click the footnote
Delivery is nothing new but the apps that support it these days are making it more costly for the end consumer. It’s no matter of just paying a tip but the various fees associated with the added convenience significantly increase the end price.
I analyzed carrying out (CO), delivery from their own app (Del./App), or from DoorDash (DD) for three companies: Domino’s DPZ 0.00, Chipotle CMG 0.00, and Sweetgreen SG 0.00.
On average, ordering from the company’s native app, was 63% more expensive than if I went to go pick it up.If I used DoorDash, the cost was 62% more expensive than had I just picked it up.
What is interesting too was that when you compare using DoorDash for Chipotle and Sweetgreen versus their native apps, the price was ~4% more for the exact same thing.
The question we need to ask ourselves is what’s the tipping point that will convince consumers to physically go pick up their food instead of ordering? Does it even exist?
Until next time,
Cedar Grove Capital