For restaurant owners in today’s competitive market, partnering with a food delivery service is almost essential. But with so many options available, the question becomes: which food delivery app offers the best value without sacrificing quality and reach? The allure of the Cheapest Food Delivery Service is strong, especially when margins are tight. However, “cheapest” doesn’t automatically equate to “best.” Let’s delve into a comprehensive food delivery app price comparison to help you make an informed decision that benefits your business.
Comparing Costs: DoorDash, Postmates, Uber Eats, Grubhub, Caviar, and Branded Apps
The fundamental question for many restaurants is straightforward: what is the cheapest food delivery service among giants like DoorDash, Postmates, Uber Eats, and Grubhub? The answer, unfortunately, isn’t always clear-cut and can vary based on location and specific order details.
Initial explorations into pricing reveal interesting nuances. One study highlighted that the same menu items can fluctuate in price across different platforms. For instance, ordering carne asada fries might be cheapest on Postmates, yet the overall cheapest option for various orders could surprisingly be Uber Eats, even with potentially higher base prices, due to fluctuating delivery fees. Another order, like a tofu teriyaki bowl, might see Grubhub emerge as the cheapest, while DoorDash could take the lead for a Greek chicken pita. Interestingly, despite these individual order variations, Uber Eats sometimes averages out to be marginally cheaper overall in certain regions for the customer. This might suggest why consumers seeking the absolute lowest price point might gravitate towards Uber Eats.
However, market share data paints a more complex picture. While Uber Eats held a significant 61% of the Miami market in late 2020, DoorDash dominated in major cities like Philadelphia, San Francisco, and Houston. Grubhub maintained a strong lead in New York City with 51% market share, and Postmates showed dominance only in Los Angeles with 38%. This regional variation emphasizes that popularity and perceived value aren’t solely driven by the absolute cheapest price for the end consumer.
Let’s shift our focus to the crucial perspective of restaurant owners and dissect the fee structures and offerings of each major player, alongside the increasingly attractive option of a branded app solution.
DoorDash
DoorDash has captured a substantial market share, claiming nearly 27% of the market in 2019, making it a leading contender among cheap food delivery apps. Its commission fee structure starts around 20%, which, relative to some competitors, is moderately competitive. DoorDash’s extensive reach, operating across all 50 US states, is a significant advantage. This broad availability translates to maximum exposure for restaurants, tapping into a vast pool of potential customers. For businesses prioritizing widespread visibility, DoorDash presents a compelling option within the spectrum of food delivery services.
Grubhub
Grubhub, a pioneer in the food delivery app space, expanded its reach by acquiring Seamless, Eat24, Foodler, and OrderUp. Operating in 2,700 cities across all 50 states, Grubhub’s commission rates are variable, ranging from 15% to 30%, influenced by factors like restaurant type and location. While once the undisputed market leader, Grubhub now closely trails DoorDash, holding around 27% of the market. A notable feature of Grubhub is its flexibility, offering options for restaurants to utilize their own delivery drivers, even providing POS system integration. This allows for seamless integration with a restaurant’s existing website, streamlining the online ordering process for enhanced customer convenience.
Postmates
Postmates holds a smaller market share of approximately 12% and operates in 1,500 cities across the 50 states. While offering a slightly reduced reach compared to DoorDash and Grubhub, Postmates boasts high customer satisfaction ratings. However, its commission structure is on the higher end, around 30%. This higher cost could contribute to its lower popularity among both restaurants and price-conscious customers. To offset this, Postmates offers perks like a monthly subscription plan (around $10) providing free delivery on orders exceeding $15. Another appealing feature is the absence of surge pricing, which can be a significant advantage during peak demand times like weekend evenings.
Uber Eats
Despite being available in only 500 cities globally, Uber Eats commands a substantial market share of approximately 25%. Its user-friendly interface and vast network of drivers, leveraging Uber’s original transportation infrastructure, ensure readily available delivery services. However, Uber Eats faces challenges regarding delivery quality. Because drivers are not specifically trained for food handling, issues like cold food, spillage, and delivery errors are more frequently reported. Customer service responsiveness can also be a point of concern. Paradoxically, despite these service quality issues, Uber Eats charges a high commission, ranging from 30% to 40%, making it potentially one of the most expensive options for restaurants in terms of commission percentage.
Caviar
Caviar distinguishes itself as a premium food delivery service, partnering exclusively with select, often upscale, restaurants. Its market share is considerably smaller, around 3%, as it occupies a niche market rather than directly competing with mass-market apps. Caviar operates in only 11 major US cities, making it geographically limited for many restaurants. However, within its niche, Caviar offers reliable, high-end service with a comparatively reasonable 25% commission rate. Its affiliation with Square POS further simplifies operations for restaurants using the Square ecosystem, ensuring a smooth ordering process for both the restaurant and the customer. For restaurants in its service areas seeking a premium delivery experience and brand alignment, Caviar is a viable option.
Branded App: Your Own Platform for Control and Cost Savings
An increasingly attractive alternative to third-party apps like Uber Eats and Grubhub is developing your own branded app and online ordering system directly through your restaurant’s website. This approach offers significant advantages in terms of brand identity, customer loyalty, and cost control. Building a strong brand identity is crucial for fostering repeat business, and owning your customer ordering experience allows for direct engagement and relationship building. Financially, branded apps typically operate on a flat fee model, often ranging from $49 to $169 per month, offering predictable and potentially significantly lower costs compared to percentage-based commissions charged by third-party platforms. This fixed-cost structure can be particularly appealing for restaurants seeking to maximize profitability from their delivery operations.
What Truly is the Cheapest Food Delivery Service?
The answer to “what is the cheapest food delivery app?” remains nuanced and context-dependent. It’s not solely about the lowest commission percentage. Factors like market reach, order volume, customer satisfaction, service quality, and brand control all contribute to the overall value proposition for a restaurant. Analyzing market data for your specific location is crucial to understand which platforms are most popular with local diners. Experimenting with a few different services can also provide valuable insights into which partnerships function most smoothly for your operations and resonate best with your customer base. While focusing on the cheapest option is understandable, a holistic approach that considers all aspects of value and long-term business goals is essential for selecting the optimal food delivery service for your restaurant.
| Solution | Fee |
|---|---|
| DoorDash | 20% |
| GrubHub | 15% – 30% |
| UberEats | 30%-40% |
| Postmates | 30% |
| Caviar | 25% |
| Own Branded App | Flat $49 – $169 See pricing |
