Cheapest Food Delivery App | 4 Best Options - 2023
Online ordering apps offer customers the ultimate convenience. But which platform is the cheapest food delivery app? And, which food delivery service is best for restaurant owners? Surprisingly, these two factors go hand in hand.
The best food delivery service will offer ways to order takeout on a budget while giving every business owner resources to succeed. In this blog post, we’ll cover the popularity and key expenses of DoorDash, Uber Eats, Grubhub, and Postmates. Then, you’ll be able to determine which app best suits your wallet.
Standard Costs Associated With Delivery Service Providers
Whether you’re trying to buy or sell high-end or fast food restaurant delivery services, there will be a few costs associated with each transaction. See below for the top three fees:
All online ordering platforms require customers to pay a delivery fee. These payments go toward wages for the drivers. They might also pay for vehicles, insurance, maintenance, and other variable expenses. That's why picking up orders is a slightly cheaper option. After all, customers are paying for the convenience of delivery.
Do you ever wonder what all those service fees are about when you order food online? Well, those fees allow the restaurant business to stay afloat. You see, there are many restaurant expenses that business owners will incur. So, implementing a service fee is how restaurant operations stay in motion.
Restaurant marketing, innovative restaurant technology, and payment processing are just a few popular costs eateries face. Then, you have the costs of inventory, paper goods, payroll, and utilities. Oh, and you can’t forget that they still need to earn a profit.
The only way to avoid service fees is to invest in a paid subscription. Though you’ll be paying a fixed rate on a monthly basis, it’ll all level out over time. This is especially true for customers who often order restaurant food delivery.
Almost every food delivery service offers a subscription model where customers can gain access to many benefits. More often than not, these include discounted or zero fees. They typically cost upwards of $10 per month for unlimited access. Plus, they serve as consistent cash flow for the provider.
If you’re researching how to increase food delivery sales, offering an enticing subscription model might do the trick. It’ll give the illusion that an app is cheaper since there won’t be certain fees present upon checkout. And if they order through the app often, it technically does make it a more cost-effective platform.
Cheapest Food Delivery App | 4 Options
Are you striving to determine which is the best app for food delivery from a financial standpoint? Keep on reading to learn about the basic fees behind DoorDash, Uber Eats, Grubhub, and Postmates!
It’s no surprise that there are over 390,000 restaurants on the DoorDash app. After all, they offer some of the best perks and prices to its customers.
On average, DoorDash users can expect to pay the following fees and expenses:
- Delivery Fee: Customers who order food for delivery on DoorDash usually pay a delivery fee starting at $0.60. This fee can go up to 10% to 15% of the total cart value.
- Service Fee: DoorDash: Customers that use DoorDash without a DashPass membership pay around $3 on service fees. This figure is about 10 percent of the order's total cart value.
- Subscription Model: DoorDash customers have access to DashPass, which offers a 30-day free trial. Plus, customers can receive free delivery on orders that cost $12 or more.
Key Takeaway: DashPass is the best subscription model. Not only does DashPass lower fees more than other subscription models, but the app offers many exclusive discounts.
2. Uber Eats
Uber Eats dominates every market too, as there are over 900,000 restaurants that use the platform. They likely accomplished reaching nearly one million businesses due to the popularity of the on-demand transportation app of the same name. So, it’s safe to say that they’ll offer quite the variety.
Those who use Uber Eats should anticipate spending the following average costs:
- Delivery Fee: Consumers who place orders through Uber Eats can pay anywhere from $0.99 to $2.99 when purchasing from restaurants within a five-mile radius. The farther the restaurant, the higher the delivery fees will be.
- Service Fee: Customers who order from Uber Eats pay an average minimum of around $2.90 on service fees. On some orders, this fee has been upward to 15 percent of the subtotal.
- Subscription Model: For just $9.99 per month, customers can purchase Uber One. This subscription completely waives delivery fees. As you can imagine, this makes Uber Eats one of the cheapest food delivery apps for frequent diners.
Key Takeaway: Uber Eats offers the widest selection of restaurants with almost a million restaurants on the app. Plus, it provides customers with the cheapest delivery fee.
As of early 2023, there were approximately 320,000 restaurants using the Grubhub app. However, bear in mind that this third-party platform executes steady marketing efforts. So, we expect more restaurants to hop aboard in the upcoming years.
On average, customers can expect to pay the following fees for Grubhub:
- Delivery Fee: Those who order food online via Grubhub can expect to pay 10 percent of their order's subtotal in delivery fees.
- Service Fee: Customers can expect to pay an average minimum of $1.50 on service fees. Meanwhile, this price is typically 2.9 percent of the total cart value.
- Subscription Model: To save some money, Grubhub users can pay $9.99 for Grubhub+. This flat fee each month will grant customers with free deliveries on orders that cost $12 or more. Grubhub+ will also provide access to exclusive deals.
Key Takeaway: Grubhub offers customers the cheapest service fees of all the delivery apps.
Since Postmates is very inclusive, there are over 600,000 businesses on the platform. That’s likely because they were one of the first food delivery apps that also delivered groceries. It’s about two years older than DoorDash, which offers similar services. However, this period was quite a long time to get a headstart in growing a client base.
When using Postmates to order food or groceries, customers can expect to incur the following costs:
- Delivery Fee: Customers can expect anywhere from $1.99 to $3.99 when ordering on Postmates. However, delivery fees can vary depending on the restaurant and city
- Service Fee: The service fees on Postmates are usually a minimum of $3.60. This estimate is usually about 15% of an order’s total cart value.
- Subscription Model: Customers who like using Postmates can get Postmates Unlimited. This subscription allows customers to get free delivery. Plus, they also receive 5% off the service fee on restaurant orders over $15.
Key Takeaway: Postmates is one of the oldest food delivery services for restaurants. With this in mind, there are so many options across restaurant and retail brands.
The Importance of Food Delivery App Costs
As the business owner or manager of a restaurant, you might be wondering why it’s important to identify the cheapest food delivery app. After all, those are expenses that the customers will incur. But you see, that’s exactly why! Using what’s most suitable for customers will attract the most business.
Let’s say you operate a fairly inexpensive restaurant. Using an app that requires hefty fees will deter people from using it. Once the checkout page shows that the fees are almost as much as the dishes, it makes sense that the customers would feel discouraged from clicking “place order.”
On the other hand, an upscale restaurant might be more inclined to use a pricer delivery app. This theory goes hand in hand with premium pricing strategies. In other words, restaurant owners might choose to use a more expensive food delivery software, as it’s reflective of their quality. Even though the eatery and app are two separate entities, the pricing would correspond with one another.
All in all, the decision to use the cheapest food delivery app boils down to the target audience. However, never lose sight of the fact that businesses can use more than one multi restaurant food delivery app. Though it’ll come with an expense, this will certainly help optimize restaurant success.
Frequently Asked Questions About the Cheapest Food Delivery App
Are you still trying to choose the cheapest food delivery app to download or partner with? If so, there are a few more tidbits of information you should be aware of. Read below for the details:
What Is the Cheapest Food Delivery App?
DoorDash constantly ranks as the cheaper food delivery app. The Dash Pass memberships is a cost-effective way to dodge various fees. Plus, the app conveniently displays restaurants nearby that won’t charge you a delivery fee.
Which Food Delivery App Has the Least Amount of Fees?
Technically, DoorDash offers customers the least amount of fees. This is because the DashPass subscription reduces both delivery and service fees.
Is DoorDash or Uber Eats Cheaper?
DoorDash is just a tad bit cheaper than Uber Eats. DoorDash is an app with lower service fees, while Uber Eats often has lower delivery fees. But here’s the thing–DoorDash also displays a list of restaurants that have zero delivery fees. That’s the determining factor that makes this app cheaper to use. On average, customers spend approximately $6 less on DoorDash.
Is DoorDash or Grubhub Cheaper?
DoorDash is known to be significantly less expensive than Grubhub. After analyzing the cart values of numerous orders, it seems that people spent roughly $10 less while using DoorDash. Plus, DoorDash offers customers a membership where people can pay less in fees. For those who frequently order from the app, this could help save a ton of money.
What Is the Best Food Delivery App?
The best food delivery apps are Grubhub, DoorDash, and Uber Eats. All three of these delivery apps have great memberships, a wide selection of restaurants, and a user-friendly interface.
The Cheapest Food Delivery App
There are many variables that can contribute to a platform being the cheapest food delivery app. However, there are features and subscriptions across the board that lessen costs for customers. Are you a business owner contemplating which third-party delivery apps to integrate with? If so, book a demo with Revolution Ordering to learn all about your options!