Double Hit on Food Delivery
Food delivery apps are getting squeezed from two directions: higher fuel costs for drivers and higher food costs for restaurants.
Higher Delivery Fees
Delivery drivers pay for their own gas. With gas prices up 17% nationally (and above $5/gallon in California), drivers need higher payouts to make deliveries worthwhile. Platforms are responding by raising delivery fees, adding fuel surcharges, or both.
Higher Menu Prices
Restaurants are seeing their own costs rise — cooking oil, ingredients, packaging, and delivery from suppliers all cost more when diesel and oil prices spike. Many restaurants have already raised their in-store prices, and delivery app prices (which are typically already 15-30% higher than in-store) will follow.
What to Expect
- Delivery fees: Up $1-3 per order in many markets
- Menu prices on apps: Up 10-20% as restaurants pass through costs
- Surge pricing: More frequent during peak hours as fewer drivers operate
- Longer wait times: Some drivers are reducing hours due to fuel costs
Cost-Saving Tips
- Cook at home: The cheapest meal is always one you make yourself
- Pick up instead of delivery: Save the delivery fee and tip
- Use subscription passes: DoorDash DashPass and Uber One can offset fee increases if you order frequently
- Compare platforms: Prices and fees vary between apps for the same restaurant
- Order during off-peak hours: Avoid lunch (11am-1pm) and dinner (6-8pm) surge periods