It's Friday night, the end of a tiring week and you don’t feel like cooking. And why bother? With just a few taps on your phone, you can have your favorite burrito and guac delivered to your doorstep.

Food delivery is one of the most popular non-essential splurges for 27% of people, according to Empower findings. Online food delivery is a $242 billion industry expected to exceed $746 billion by 2033¹ — with apps like DoorDash, Grubhub, Uber Eats, and others servicing restaurants and diners alike.

The number of consumers opting for third-party delivery services over direct restaurant delivery has increased to 21% in 2024 from 15% in 2020.² Now some 60% of U.S. consumers opt for delivery or takeout at least once weekly.³

Budget eater

Food delivery apps have made it easy as pie to get what you want to eat, when and from where you want it. The Consumer Price Index for food away from home rose 3.8% year-over-year in October 2024.⁴ Even so, many Americans are happy to have the option: More than a third (36%) say they would rather pay more to get an item delivered instead of driving 10 minutes to get it, according to an Empower study.

On average, people spend $118 a month on food delivery — the third highest non-essential monthly expenditure after travel and fine dining, according to Empower data. Some third-party apps promote monthly or annual membership as a means for potential savings.

Monthly spending on food delivery

*Anonymized user data from the Empower Personal Dashboard™ as of November 2024.

Read more: Order up: Fast-casual favorites ring up at $40 a month

Hunger games

Just how much does it cost for food delivery via an app? Hold onto your forks, because it’s not quite as simple as paying a flat fee. For some third-party delivery services, the average outlay is 20% higher than the menu costs for dining in.⁵ Along with the price of the food, factor in service fees, delivery costs, and driver tips, all of which can vary depending on location and distance. Here’s a breakdown of where your money may be going:

🍕 Restaurant mark-ups. Restaurants pay a commission to be featured on food delivery platforms, and some may bump up their menu prices on apps to help them break even. So, right out of the gate you might be paying $12 for a salad that would run you $10 if you were to dine in or pick up your own take-out order at the restaurant.⁶

🍕 Service and other fees. These can include anything from operational expenses of running the platform, to service and delivery costs.

🍕 Delivery fees. Drivers pay for their own gas, without reimbursement from the app, and navigate traffic and the elements to get you your order while the burger is still hot, and the shake is still cold — yet they may only be getting a few dollars of the delivery fee.⁷ The rest generally goes to the food delivery app.

🍕 Tips. While many apps include a line item for it, tipping is discretionary. Some experts say 15–20% is a sound guide, with the caveat that this does not account for delivery time (for long distances) and effort (traffic, restaurant delays, etc.).⁸