What a difference a few decades make! Back when I was a young boy, there was just one place that I knew of that delivered food. That place was Pizza Man. Mediocre pizza delivered right to your front door. It arrived cold, greasy, and cost substantially more than other pizzerias. We loved it!
Fast forward to today and you can order just about any food item you can think of. With the advent of the internet, the rules for business have changed. Not only can you now converse on Facebook with your buddy in Siberia, but you can also order Siberian food for breakfast and not leave your bed.
Meal delivery has been available from some restaurants for a while now. These restaurants had their own delivery drivers and tended to be either Chinese or pizza joints. Good luck getting a prime rib dinner 10 years ago without getting in your car and driving to a sit-down meal. Times have changed and so have meal delivery options.
Today we have several meal delivery services to choose from. They are alike in many ways, yet the business models seem to be constantly changing. These changes are often accompanied by increases in fees. The dirty little secret is many delivery companies keep the highly visible 'delivery fees' the same, but increase the 'service fees.' It's a complicated subject and laws are in the pipeline to provide some sense of regulation and consistency. A balance is required between the services and the restaurants. There's a point where the fees charged to the restaurants are so high by the delivery services, it doesn't make sense to use them.
Who are the front-runners in this new and developing industry? There are a few standout companies that rise to the top of the heap. The question isn't cut and dry. Reputation, cost, number of areas, and restaurants serviced need to be factored into the equation. Let's look at a few.
Grubhub spent its early years buying up several smaller food delivery companies, before themselves being acquired by Just Eat Takeaway of the Netherlands for a cool 7.3 Billion dollars. This tidbit of information is provided merely to display the size of this expanding niche.
Providing delivery for over 300,000 restaurants in 3,200 cities, Grubhub's app is busier than most but allows one to sort by cuisine, rating, distance, delivery fee, and any new restaurant that has recently popped up.
One can upgrade to Grubhub+. At a cost of $9.99 per month, Gubhub+ will provide free unlimited deliveries from participating establishments, as well as 10% cashback for every $100 spent.
Like the other companies listed here, Grubhub will also pick up and deliver your favorite alcoholic beverage straight to your doorstep.
2019 saw Door Dash surpass Grubhub in market share, shooting them to the top of the food delivery chain. Probably the most similar to Grub Hub than other services, Door Dash services over 4,000 cities and 300,000 restaurants.
Delivery fees vary from $1.99 to $8, but if you subscribe to their DashPass option for $9.99, you can take advantage of zero delivery fees from select restaurants and reduced service fees on orders over $12. First-time customers are also targets of additional discounts, such as free delivery for orders over $10.
In addition to delivering hot food to your door, Door Dash will also do your grocery shopping and pick up a bottle of your favorite vodka as well.
Postmates states that they deliver “anything from anywhere.” They give some strange examples of unique products they have delivered to their customers as proof. Without getting into examples, I suggest you try pushing the boundaries sometime and test their motto.
Postmates operates in 4,200 US cities and features more than 600,000 businesses on their platform. Delivery fees are not static and change due to the time of day. If you order during busy times, (blitz hours) you'll pay more than you would when the drivers are less active. Uber Eats has a similar set-up.
Delivery charges range from $0.99-$3.99 for partner merchants and $5.99-$9.99 for everything else. When utilizing their subscription service, Postmates Unlimited, orders over $12 are free and there are no extra fees during “blitz” hours. Postmates Unlimited will set you back $9.99 per month or $99 for a full year. It's a no-brainer option if you are a chronic user.
From Uber, the company that became famous for delivering patrons home safely after a night of drinking comes Uber Eats, an app that delivers your munchies after you get back. Although arriving late to the food delivery party, Uber Eats has become a formidable player in this uber-competitive arena.
With over 320,000 restaurants located in more than 500 cities worldwide, Uber Eats is considered by many to be the most affordable meal delivery service around. One offer that should be not be dismissed is the promotion they offer new users. 40% off the first four orders amounts to quite a deal for newbies.
Like other food delivery services, there is a premium membership known as Eats Pass. For the familiar fee of $9.99 per month, subscribers enjoy unlimited free delivery (regardless of hours), as well as 5% off on orders of $15 or more.
Covid-19 has greatly amplified the need for the services these companies provide. What was once merely a novel way to get your favorite restaurant food delivered to your home, has become a lifeline to many. Fearing the outside world and the germs that come with it, consumers have become increasingly dependent on delivery services and this habit will probably continue long after the virus is gone.
Disclaimer: This article is for informational purposes only and is not intended to be a substitute for professional consultation or advice related to your health or finances. No reference to an identifiable individual or company is intended as an endorsement thereof. Some or all of this article may have been generated using artificial intelligence, and it may contain certain inaccuracies or unreliable information. Readers should not rely on this article for information and should consult with professionals for personal advice.