Delivery apps are turning a $40 meal into a $54 purchase, as Australians pay around 36% more when ordering food through platforms such as UberEats, DoorDash and Menulog. While these services offer convenience, the extra charges included in meals and added at checkout are putting pressure on household budgets and restaurant income.
Over the past decade, the growth of food delivery apps has reshaped how Australians eat. With 60% of food businesses now offering takeaway, many have partnered with third-party platforms to stay relevant. Australians currently spend about $60 a week on delivered meals like burgers and burritos, despite the hidden costs that continue to rise.
A review of 100 eateries in Sydney found that meals ordered through apps generally cost over 36% more than if bought in-store. This increase comes from several areas including restaurant mark-ups to cover platform commissions, service charges added during checkout and delivery fees ranging from 99 cents to more than $10. UberEats showed the highest average markup at 37.1%, while DoorDash followed closely with a 35% increase.
Restaurant owners report that they too are bearing the burden. Delivery platforms can take a 33% share of each sale, a margin that many small operators say is unsustainable. Some try to keep prices consistent between app orders and dine-in purchases but with a net profit of only 5 to 10% per order, it remains difficult. Others increase their menu prices online to stay afloat, though this may lead to lower rankings in search results within the apps, reducing their visibility.
For smaller venues that rely on digital orders, this business model is becoming harder to maintain. Some have begun focusing more on dine-in customers to lessen their dependence on high-cost platforms. Although the delivery market is unlikely to disappear soon, rising prices and shrinking profit margins are forcing both businesses and consumers to reconsider just how beneficial delivery convenience really is.
