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<ul class="summary-list"><li>Research shows that ordering food for delivery has gotten expensive, yet demand remains high.</li><li>Pandemic habits and time-saving needs drive consumers to prioritize convenience.</li></ul>Convenience comes up with a pretty hefty cost these days.There's now a <a target="_blank" class="" href="https://www.businessinsider.com/ordering-food-through-uber-eats-doordash-gotten-wildly-expensive-2024-9">considerable difference in spending</a> between eating out and getting your meal delivered. But demand for food delivery has remained high — as has its price.The personal finance site FinanceBuzz did <a target="_blank" class="" href="https://financebuzz.com/compare-costs-food-delivery-apps">an experiment</a> in September and found that based on the cost to deliver an entrée, a side, and a drink from 10 popular chains on the same day within 3 miles — organizing dinner with an app such as DoorDash, Grubhub, UberEats or Postmates can cost almost double what it would to collect it yourself. This is when factoring in charges for food, fees, taxes, and suggested tips. Business Insider contacted these delivery companies for comment. Both Uber — which owns UberEats and Postmates — and Grubhub pointed out that restaurants also often set the menu prices for delivery, and these may sometimes be higher than when purchasing in-store. Still, diners aren't necessarily being deterred by the much higher prices.Last week, food delivery company DoorDash, reported an 18% rise in orders year over year in its third quarter of 2024. Revenue grew 25% to $2.7 billion in the same period.While Uber doesn't split out the results of its individual delivery companies, it saw gross bookings for its delivery segment grow by 16% year on year in Q3.So, why has delivery gotten this expensive?<h2 id="ef2204e7-2a73-4ce1-b97e-9e59db13fb63">Consumer competition</h2>"As app delivery has become more popular, apps have to pay more to <a target="_blank" class="" href="https://www.businessinsider.com/drive-for-uber-eats-after-layoff-would-not-recommend-2024-7">drivers</a> to convince them to make deliveries for their team — with many drivers juggling multiple apps throughout their shifts," Anthony Miyazaki, a professor of marketing at Florida International University, told Business Insider."At the same time, demand for delivery pushed consumers to unknowingly compete against each other, with <a target="_blank" class="" href="https://www.businessinsider.com/how-much-to-tip-food-delivery-driver-doordash-ubereats-2023-7">a willingness to pay more for delivery and more for tips</a> to get their food delivered on time," he said. A food delivery driver <a target="_blank" class="" href="https://www.businessinsider.com/how-delivery-driver-gets-big-tips-declines-orders-wealthy-areas-2023-4">previously told BI</a> that he decides to accept or pass on a variety of deliveries often based on the highest upfront tips.<div type="image" title="food on a table from doordash delivery service" height="528" width="772" msid="114979379" hostid="261" sizebytes="27174"></div>This led delivery app companies to take a higher cut from restaurants and raise fees for customers, while at the same time, drivers are looking for higher tips, Miyazaki explained, which all results in a much pricier food order.Matched with inflation resulting in the soaring prices of labor and commodities, many chains — including Starbucks, McDonald's, KFC, In-N-Out, and Olive Garden — <a target="_blank" href="https://www.businessinsider.com/fast-food-price-rises-tipping-point-value-deals-combos-mcdonalds-2024-8">have increased the cost of menu items</a>.There are a couple of reasons that, despite the hikes, Americans are still choosing the ease of using an app to get dinner.<h2 id="5a6cf862-4bfe-4ddc-b330-71cd4f343f80">Creatures of habit</h2><a target="_blank" href="https://www.businessinsider.com/changes-restaurants-pandemic-qr-codes-self-service-kiosks-2024-10">The way we dined changed</a> following the COVID-19 pandemic.But despite lockdowns coming to an end and the country gradually opening back up, people grew accustomed to the trend of ordering food."The pandemic has shifted dining habits, leading more consumers to seek out restaurant-quality meals at home," Alon Chen, CEO of Tastewise, a consumer data platform for food and beverage brands, said."Consumers now consider ordering takeout as a time-saving experience akin to dining out but in the coziness of one's living room," he said.For Miyazaki, because of the rise of streaming, more are comfortable with 'entertaining in' rather than going out for a meal."Also, with more people working from home, they're likely further from lunchtime restaurants and <a target="_blank" class="" href="https://www.businessinsider.com/work-from-home-lunch-experts-broken-not-take-breaks-2024-9">don't feel the need to get away from the office anymore for their lunch break</a>," he said.<h2 id="ad899ce2-c371-4933-b511-e71d9133d92b">Time is money</h2>Oliver Wright, a senior managing director and the global lead for consumer goods and services at Accenture, explained that consumers feel "time-poor."This means that although <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/cutting-out-cost-of-convenience-for-a-month-2021-11">more money is spent on ordering food</a> than cooking or eating in a restaurant, the customer is saving time, he told BI.The degree to which <a target="_blank" class="" href="https://www.businessinsider.com/why-doordash-instacart-still-delivering-lots-as-consumers-pull-back-2024-8">convenience and ease are playing on consumers' minds</a> to alleviate time pressure has become especially relevant in recent years, Wright said, to the extent that people are willing to spend more if time is saved."Feeling 'time-poor' is a really dominant attribute," he said."The value of time might be very high," Chris Olivola, an associate professor of marketing at Tepper School of Business, told BI.He said that for the rational consumer, whether because of the amount of money earned per hour, how much importance is given to an activity, or the contribution being made to a company, these food delivery apps are popular because of how they assess their time.It's also about expertise, he said."You might be a good cook, but if you want Thai food and you don't know how to cook Thai, you have to teach yourself, Olivola said, "and that takes time."

Food deliveries keep getting more expensive — but we can't stop ordering       

As India gears up for its vibrant festive season, a notable surge in <keyword id="23052492" type="General" weightage="20" keywordseo="seasonal-hiring" source="keywords">seasonal hiring</keyword> is taking place across various industries, with gig roles leading the charge. According to data from job site Indeed, seasonal hiring is projected to rise by 20% this year compared to last, driven primarily by <keyword id="19990771" type="General" weightage="20" keywordseo="e-commerce" source="keywords">e-commerce</keyword>, logistics, and retail sectors, as companies prepare for heightened consumer demand. Sashi Kumar, Head of Sales at Indeed India, emphasised, "The festive season is a crucial period for businesses across India, and we're seeing a significant uptick in hiring for seasonal roles as companies prepare to meet heightened consumer demand." <h3 style="line-height:1.2;margin-top:14.0pt;margin-bottom:4.0pt;">What is gig work?</h3>Gig work refers to flexible, short-term, or freelance employment often facilitated by digital platforms. Unlike traditional full-time jobs, gig workers are hired on a project basis, allowing them to work for multiple employers or companies as needed. These roles are popular in industries like food delivery, transportation, and logistics. During India's <keyword id="21015356" type="General" weightage="20" keywordseo="festival-season" source="keywords">festival season</keyword>, when businesses experience a spike in demand, gig workers play an essential role in ensuring smooth operations across sectors like retail and e-commerce. <h3>Gig labour during festival season</h3>The festive season in India, spanning from September to December, is one of the busiest times of the year for businesses. As a result, companies ramp up hiring to cope with increased sales and customer demand. Seasonal roles in delivery, logistics, warehouse operations, and customer support see the highest demand, as businesses focus on timely deliveries, inventory management, and customer satisfaction. Indeed's data reveals that the top gig roles witnessing a rise in hiring this season include <keyword id="21462485" type="General" weightage="20" keywordseo="delivery-executives" source="keywords">delivery executives</keyword>, <keyword id="22103182" type="General" weightage="20" keywordseo="warehouse-workers" source="keywords">warehouse workers</keyword>, <keyword id="23052493" type="General" weightage="20" keywordseo="logistics-coordinators" source="keywords">logistics coordinators</keyword>, <keyword id="23052494" type="General" weightage="20" keywordseo="in-store-sales-executives" source="keywords">in-store sales executives</keyword>, and customer care executives. While major cities like Mumbai, Bengaluru, and Delhi see a steady increase in demand for gig workers (18-20%), tier-2 and tier-3 cities like Nagpur, Jaipur, and Vadodara are emerging as key contributors, witnessing a hiring surge of 22-25%. <div type="Article" hostid="261" msid="112999246" title="As fast as some jobs are growing, others are losing steam" mstype="2" mssubtype="0"></div><h3><keyword id="3480589" type="General" weightage="20" keywordseo="meesho" source="Orion">Meesho</keyword> major contributor</h3>One of the standout examples this festive season is Meesho, a leading e-commerce marketplace in India. According to sources, the platform has enabled around 8.5 lakh seasonal job opportunities, representing a 70% increase from last year. Of these, 5 lakh jobs were created within Meesho's seller network, while another 3.5 lakh jobs emerged in the logistics sector. Sourabh Pandey, CXO of Fulfilment and Experience at Meesho, shared, "This festive season, we are particularly thrilled to have enabled 8.5 lakh seasonal jobs, especially in tier-3 and beyond cities. Empowering SMBs, local manufacturers, and logistics providers to scale their business is resulting in meaningful economic opportunities that are driving financial inclusion in these regions." Meesho has reportedly also partnered with prominent third-party logistics providers such as Delhivery, Ecom Express, and Shadowfax to meet the increased demands of the festive season. These collaborations have not only expanded logistics capacity but also helped generate gig opportunities in first-mile, middle-mile, and delivery associate roles. Abhishek Bansal, CEO &amp; Co-founder of Shadowfax, commented, "We are particularly excited to nearly double our capacity across several value-added services, such as Reverse Quality Check-Based Pickups and Hand-to-Hand Doorstep Exchange. These efforts ensure smooth deliveries and returns during the festive rush." <div type="Article" hostid="261" msid="112720685" title="If you want to find a job, it&amp;#39;s time to specialize" mstype="2" mssubtype="0"></div><h3 style="line-height:1.2;margin-top:14.0pt;margin-bottom:4.0pt;">The future of gig work in India</h3>The rapid rise in <keyword id="23052491" type="General" weightage="100" keywordseo="gig-hiring" source="keywords">gig hiring</keyword> reflects the evolving needs of today's consumers, particularly during high-demand periods like the festive season. The e-commerce industry, which saw a 35% rise in demand for seasonal workers, is expected to continue driving this trend, with logistics and retail sectors close behind. "The industries that are growing — e-commerce, logistics, quick commerce — are doing so because they're aligned with the needs and behaviours of today's consumers,” Sashi Kumar explains. “This is where the future of India's <keyword id="19916569" type="General" weightage="20" keywordseo="job-market" source="keywords">job market</keyword> could be heading". With a flurry of companies contributing significantly to job creation, particularly in tier-3 and tier-4 cities, gig work is becoming a vital source of employment across the country. As India's job market evolves, gig work is likely to play an even larger role in shaping the future of work, offering flexibility and economic opportunity to millions of workers. (With inputs from agencies)

E-commerce is expected to help seasonal hiring for gig roles surge by 20% this festival season: reports

<ul class="summary-list"><li>DoorDash has partnered with two companies to use hourly employees with benefits.</li><li>That's a change for a delivery service that built its business on contractors who are paid per gig.</li></ul><a target="_blank" class="" href="https://www.businessinsider.com/most-doordash-workers-spend-surprisingly-short-time-doing-job-2024-9">DoorDash</a> is experimenting with using employees with benefits — not just independent contractors — to make deliveries.The delivery service is working with at least two local delivery providers, one in Austin, Texas, and another in Fresno, California, through its <a target="_blank" class="" href="https://about.doordash.com/en-us/local-commerce-service-partner?_gl=1*ng6v7y*_gcl_aw*R0NMLjE3MjIyNjYzMjcuQ2owS0NRanctNXkxQmhDLUFSSXNBQU1fb0tubGp5QjdiOHNzU05OdDR6dE1Bcl9kZmd3YlJTQkpGUTBORE5RaVM3YVdUVkRoTVRYMHlNZ2FBbDJERUFMd193Y0I.*_gcl_dc*R0NMLjE3MjIyNjYzMjcuQ2owS0NRanctNXkxQmhDLUFSSXNBQU1fb0tubGp5QjdiOHNzU05OdDR6dE1Bcl9kZmd3YlJTQkpGUTBORE5RaVM3YVdUVkRoTVRYMHlNZ2FBbDJERUFMd193Y0I.*_gcl_au*MTg2ODQwNTE2MC4xNzE5OTI1Nzc0&amp;_ga=2.69043863.760568407.1727102173-897592233.1703081308">Local Commerce Service Partner Program</a>. The local providers handle hiring the employees, but the orders that they fill come from DoorDash.Websites for both companies say they are hiring W2 employees. That's a big change from the gig workers that DoorDash and other delivery services have largely built their businesses on.Though small in scale, the partnerships represent a fundamentally different business model from the one that DoorDash has used to become one of the world's largest delivery services.Since its founding in 2013, DoorDash has relied on independent contractors, who are generally paid for each delivery they complete and have more flexibility about when they work than traditional employees. Uber, Lyft, Instacart, and other delivery companies have also relied on gig workers to build their businesses, leading millions of people in the US into the gig economy.But using employees who are paid hourly and work shifts of up to several hours at a time helps make sure DoorDash always has people on hand to make deliveries, a company spokesperson said."We remain committed to preserving and protecting the flexibility of independent work that the vast majority of Dashers prefer," a DoorDash spokesperson said, referring to the company's independent contractors."However, we also know there is a small subset of workers who prefer set schedules and the predictability of W2 work, which is why we're piloting LCSP in select markets to focus on maintaining healthy supply levels and supplement the handling of new and different types of orders," the spokesperson added.LCSPs are local commerce service partners, or businesses that "operate their own delivery business and employ their own fleet of delivery associates who fulfill deliveries offered through the DoorDash platform," according to DoorDash's website.One of the partner companies, Fresno Logistics, says on <a target="_blank" class="" href="https://www.fresnologistics.com/dash/">its website</a> that it offers "high-quality logistics services to restaurants, grocery and convenience stores, and a variety of other businesses (e.g., retail) in the Fresno, CA area through the DoorDash Platform."Fresno Logistics' website touts the benefits for potential hires, including a $16-an-hour wage, tips, reimbursement for miles driven while on the job, healthcare, and paid time off. While not a direct comparison, that's much more than some gig delivery workers take home: A <a target="_blank" class="" href="https://www.businessinsider.com/uber-lyft-doordash-drivers-earn-below-minimum-wage-tips-study-2024-5">UC Berkeley study</a> this year found that many make less than minimum wage after accounting for expenses such as gas.Austin-based LCSP One, meanwhile, says on <a target="_blank" class="" href="https://lcspone.com/">its website</a> that it pays W2 workers $13 an hour plus tips and a per-mile reimbursement of 10 cents. Full-time delivery employees work four 10-hour shifts scheduled Monday through Friday each week, while part-time workers must make at least 20 hours worth of deliveries, according to the website.The home page of its website says that the company offers employees "gig-work mentality with a career mindset."Fresno Logistics and LCSP One did not respond to requests for comment from Business Insider.Gig workers lack many of the benefits and legal protections that employees get. Some gig workers have said that their pay has decreased over the last few years, especially compared to early 2020, when demand for the delivery of groceries, takeout food, and other goods rose.Others have had their accounts on the delivery apps deactivated with little or no explanation. And some gig workers have pointed to performance metrics, such as the percentage of potential orders that they accept, saying that they make the work more <a target="_blank" class="" href="https://www.businessinsider.com/doordash-grubhub-uber-workers-gig-work-feels-like-a-job-2024-8">like a traditional job.</a>Making deliveries as an employee could solve some of those problems by giving workers more predictable pay and reimbursing them for miles driven.The amount delivery services pay gig workers has been going up in some cities, too. <a target="_blank" class="" href="https://www.businessinsider.com/doordash-regulatory-response-fee-nyc-minimum-wage-law-delivery-workers-2024-2">New York City</a> and <a target="_blank" class="" href="https://www.businessinsider.com/instacart-doordash-pushing-back-against-seattle-gig-worker-laws-payup-2024-4">Seattle</a> recently enacted laws meant to raise gig worker pay.Do you work for a gig delivery service and have a story idea to share? Reach out to this reporter at <a target="_blank" href="mailto:abitter@businessinsider.com">abitter@businessinsider.com</a>

DoorDash is trying a new way of making deliveries — and it doesn't involve gig workers

<ul class="summary-list"><li>A scam is leaving Instacart shoppers or customers on the hook for gift cards they never ordered.</li><li>The scammers ask Instacart shoppers to replace items with gift cards and then send the card's code.</li></ul>Some Instacart shoppers are the targets of a scam centered on gift cards.It works like this: A scammer acting as a legitimate customer will place an order with a few small items, like a beverage or a piece of fruit. After an Instacart shopper accepts the order, the customer messages the shopper and asks if they can add one or more gift cards — often worth $100 or more — to the order.The customer will then ask the shopper to send them the card's code, which gives them access to the money before the shopper has even checked out and left the store.That "customer" can then say they didn't order the gift card — which they've already spent the money from. That could theoretically mean Instacart or the delivery worker has to cover the cost of the card. The delivery worker is also left at risk of having their account deactivated by Instacart for violating company policy."I need a 150$ Vanilla gift card," one scammer told an Instacart shopper, according to <a target="_blank" href="https://www.reddit.com/r/InstacartShoppers/comments/16o0c8b/got_my_first_scam_order_today/#lightbox">a post on Reddit</a> from last September, referencing a type of Visa prepaid card. "Its for my dads birthday but i couldn't go out." The request came with an offer for a $100 tip, according to the post."Got my first scam order today," the poster wrote, adding in the comments that they contacted support to intervene in the order once the gift card request came through.The scam doesn't just affect the workers shopping for Instacart. It can also impact legitimate customers. One TikTok user, itsjwest, said in a video posted in August that someone hacked into his Instacart account to order a Slim Jim beef stick and a $100 Xbox gift card from a Walgreens store.The two items showed up in a bag on his doorstep — but the driver had scratched off the code on the gift card and sent it to the hacker in exchange for a tip. "He tells me that he was having a conversation with the guy, and he tells me that he was tipping him $58 to go ahead and scratch off the code and send to him before actually making the delivery," itsjwest says in the video. "How is that not a red flag to anybody?"Heidi Bleau, an Instacart shopper in Massachusetts who works in marketing but shops through the app to make extra money for her son's college expenses, told Business Insider that she got a similar request after agreeing to shop and deliver an order from a Walgreens last fall."Within 30 seconds, I got a message about buying the Vanilla Visa gift card," she said. "I tried calling the customer directly, and I got a message that they prefer not to be contacted." Bleau said she just closed the app and didn't finish the order after she couldn't talk to Instacart support over the phone about the scam.Her son, who also works for Instacart, has also had at least four similar requests over the past several months, she said. It's unclear whether the requests were from fraudulent customers or scammers who had hacked legitimate accounts.One of the orders initially included a bottle of cologne, which the customer then requested be replaced with a $150 gift card. Instacart policy does allow shoppers to replace items as a "special request" for customers and override the system by adding a custom price for the item. The feature is designed to accommodate items for sale in a store but which don't show up for customers in Instacart's catalog.Instacart forbids shoppers from adding gift cards to orders, a screenshot of the company policy seen by BI indicates."It's impacting consumers who have to deal with the fraudulent charges on their credit card, but even more, Instacart has to be seeing massive chargebacks, yet I don't see they are doing anything about this," the shopper told BI."Customers are not able to order gift cards through the Instacart platform or place a special request for a gift card via chat," an Instacart spokesperson told BI.Instacart also tells shoppers not to purchase gift cards for customers, the spokesperson added.Do you deliver food, groceries, or other items as a gig worker and have a story idea to share? Reach out to this reporter at <a target="_blank" href="mailto:abitter@businessinsider.com">abitter@businessinsider.com</a>

Scammers are using delivery apps like Instacart to swindle customers and delivery workers out of money

<ul class="summary-list"><li>China's food delivery market has doubled in size over the last three years, Nikkei Asia reported.</li><li>Despite booming business, gig workers driving the industry told the outlet they face poor working conditions.</li></ul><a target="_blank" href="https://www.businessinsider.com/how-make-money-gig-worker-uber-lyft-doordash-delivery-driver-2023-12">Gig workers</a> in China are the driving force behind the country's booming food delivery market, which has doubled over the last three years to 1.5 trillion yuan, or $208 billion, according to a report from <a target="_blank" href="https://asia.nikkei.com/Business/Business-trends/China-s-food-delivery-market-explodes-to-208bn-as-workers-scrape-by">Nikkei Asia</a>.However, the laborers behind the surging industry face conditions similar to those in the country's factories, facing <a target="_blank" href="https://www.businessinsider.com/low-wage-workers-got-big-raises-during-pandemic-now-ending-2023-3">low wages</a>, long hours, and risky, repetitive work, according to numerous reports.In China, the average salary for a factory worker is <a target="_blank" href="https://www.erieri.com/salary/job/factory-worker/china#:~:text=Salary%20Recap-,The%20average%20pay%20for%20a%20Factory%20Worker%20is%20CNY%2058%2C369,education%20for%20a%20Factory%20Worker.">28 yuan per hour</a>, or $3.94, according to statistics from the Economic Research Institute.Lu, a 19-year-old <a target="_blank" href="https://www.businessinsider.com/coronavirus-changing-food-consumption-in-china-2020-2">Meituan delivery driver</a> in Guangzhou, told Nikkei Asia he earned just 7 yuan per delivery, less than a dollar. He averaged about 30 deliveries daily, making his wages lower than employees at a local factory in Guanzhou, the outlet reported."I was only allowed two days off per month and couldn't visit home," Lu, who quit the job after six months to return to his home province, told the outlet. "This job is very difficult."One courier in Shanghai told <a target="_blank" href="https://www.wired.com/story/chinas-gig-workers-challenging-algorithmic-bosses/">Wired</a> the frequency of <a target="_blank" href="https://www.businessinsider.com/dangerous-motorcycle-crash-traffic-france-2015-3">motorbike accidents</a> he witnessed on the job caused him anxiety while driving and that he frequently had to work 12-hour days, completing 50 to 60 orders to make ends meet.In the US, delivery drivers average <a target="_blank" href="https://www.bls.gov/oes/current/oes533031.htm">$17.10 per hour</a>, according to the Bureau of Labor Statistics.The problem is so bad even the Chinese government is stepping in to enforce new guidelines that major gig-work employers — like Meituan and <a target="_blank" href="https://www.businessinsider.com/uber-china-competitor-didi-chuxing-looking-to-raise-2-billion-2019-7">Didi Chuxing</a> — must adhere to to ensure ride-share and delivery drivers can take time off and earn enough to stick to minimum wage laws, per the <a target="_blank" href="https://www.scmp.com/tech/policy/article/3253078/meituan-didi-chuxing-spotlight-china-stresses-rights-delivery-ride-hailing-gig-workers">South China Morning Post</a>.Authorities with the Ministry of Human Resources and Social Security have found "pronounced problems" in the industry, including excessive working hours, <a target="_blank" href="https://www.businessinsider.com/fast-food-operator-kills-vacations-hikes-prices-calif-wage-law-2024-1">minimum wage violations</a>, and a lack of resources to report rights violations, SCMP reported.The apps have tried to force the couriers to work faster by narrowing delivery windows, which Wired noted has correlated with a rise in police reports of <a target="_blank" href="https://www.businessinsider.com/amazon-delivery-drivers-crashes-propublica-buzzfeednews-report-2019-12">traffic accidents</a> involving couriers and has prompted some drivers to fight back.Some laborers have taken to organizing through WeChat groups to identify and collectively refuse to deliver to difficult-to-navigate locations, such as large buildings requiring elevators or gated communities, per Wired.They "know it is impossible to deliver in the time expected by the platform," Tiziano Bonini from the University of Siena, who has been studying gig work in China, told the outlet. "So they organize these kinds of collective rejections until that order comes back with a higher price."

You Searched For "food delivery market" and got 5 results

Food deliveries keep getting more expensive — but we can't stop ordering

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E-commerce is expected to help seasonal hiring for gig roles surge by 20% this festival season: reports

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DoorDash is trying a new way of making deliveries — and it doesn't involve gig workers

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Scammers are using delivery apps like Instacart to swindle customers and delivery workers out of money

Alex Bitter

China's food delivery gig workers are driving a $208B business, but couriers have it as bad as factory workers

Katherine Tangalakis-Lippert

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