This post contains referral links. I may be compensated for sign-ups through them.
Well, I did the unthinkable on Tuesday and ordered through GrubHub.
Normally, I just go pick up any takeout. If I don’t have the energy, I just don’t get it. But I had very intense cravings that made everything in the house sound super unappealing. Meanwhile, I’d only gotten 2 two-hour stints of sleep and a one-hour nap, meaning I was exhausted and it wasn’t safe for me to drive.
So I bit the bullet. And what a bullet it was!
A heinous convenience tax
I really wanted my favorite takeout place’s food, but it had closed while the spike was so bad. So I chose my favorite Thai food.
I’m always torn about which dish to get at this particular restaurant: pad kee mao noodles or pad thai. So I usually just get both, then have one the following day. In this case, it was an extra good idea, since it amortized the cost of fees over two meals. If I’d just gotten one meal, the price would’ve been exorbitant!
Specifically, I paid a $3.99 delivery fee, a $2ish service fee (which is what, exactly?) plus a $6 tip. So getting it delivered added $12 to my total. If I’d gotten only one meal, it’d have been a $8 add-on (since the service fee and tip would’ve been smaller). Meanwhile, the meals themselves were $9.65 and $10. So the fees I’d have paid for ordering just one meal would’ve nearly doubled the cost.
That’s insane. How do people afford these services regularly?!
The bad way to save
Well, when I tweeted complaining about the cost and asking how people can keep using the service, two former drivers piped up to say that a lot of people just don’t tip. Which frankly, is incredibly crappy of them.
If you’re going to get delivery at any place, you should be tipping. But also, it’s important to note that, like any restaurant’s or pizza place’s delivery fee, that amount doesn’t go to the driver.
Instead, the driver is paid a per-order amount (around $3-4 according to GigWorker.com) and some mileage. I guess people rationalize that the per-order amount is tantamount to a tip. But c’mon, folks, not cool. If each order takes an average of 20 minutes to pick up and deliver, a driver working eight hours would only get $72-96 if they’re not tipped. For eight hours’ work.
Delivery fee variety
One tip I heard from Twitter is that delivery fees can vary among restaurants. Some even have a $0 fee. (Though there may be a small-order fee if your bill doesn’t reach a certain threshold.) So you can browse an app’s offerings (in general or by cuisine type) and see if you can find a place with a low or $0 delivery fee.
The problem is that I’m super loyal to restaurants. I don’t like the unknown — especially with Asian food here in Arizona. It’s a total crapshoot.
So another Thai place with a $0 delivery fee isn’t going to help me much if I specifically want my place (which has a $3.99 fee) where I know I’ll like the food.
Get referred
Next good way to save: referral codes.
For example, if you have a friend who uses GrubHub and it’s your first GrubHub order, have them refer you. You’ll each get $10 off. If you don’t have a GrubHub-using friend, here’s my referral link.
It’s also great to go to sites like Savings.com, RetailMeNot, etc. to find sign-up offers.
Important note: To get a new user signup discount, you’ll usually need to specifically sign up through their links. In other words, don’t download the app until you’ve looked around for promotions.
By the way, don’t forget to check out all the apps’ websites to see which ones have the restaurant you’re interested in. Some apps have much more substantial new user discounts. UberEats is offering $20 off your first two orders of $25 or more through certain referral/affiliate links.
Get coupon codes
Even if it’s not your first order, the coupon sites will often have other discounts (5% off, $5 off, waived delivery fee, etc.). Of course, many of those offers are user-submitted, so you may have to go through several before finding one that works. But that should only take a few minutes, max, so it’s worth it.
It’s also worth noting that some of these apps are on cash back sites like Mr. Rebates. There will be coupons there, too. For example, it currently has $10 off $30 at GrubHub plus 3% cash back. DoorDash and Postmates don’t have coupons but offer $3 and $6 back, respectively.
That said, I know Postmates frequently has sign-up offers for free delivery fees in your first month, up to $100. In fact, I used that offer the only other time I’ve ever used a delivery app. Admittedly, that was two years ago, so the offer may have changed since. Point being, once again, it’s worth doing your homework before actually downloading the app.
And once you’re signed up for an app, you’ll probably get a slew of offers on a semi-regular basis. I haven’t ordered anything from Postmates in two years, but I still routinely get free delivery offers or other incentives.
Membership
Another savings option that’s popular is the use of programs like the Eats Pass (UberEats), GrubHub+ and DashPass (DoorDash). These offer discounted or free delivery (plus sometimes a discount) for $9.99 each month.
For UberEats, you get free delivery and 5% off $15+ orders. It applies to all restaurants.
GrubHub+ also offers free delivery, but there’s no mention of any additional discounts. It’s also not applicable to all restaurants. You have to look for GH+ by the name.
DashPass offers $0 delivery fees for $15+ orders for $9.99 a month. Like GH+, not all restaurants participate. But the program is free for a year if you have the following cards:
- Chase Sapphire Reserve
- Chase Sapphire Preferred
- Chase Freedom Unlimited
- Chase Freedom
I have the Freedom card, so I’ll have to look into that. If you don’t have one of those cards, then some quick math shows that you’ll only save money with these programs if you order at least three times a month. So depending on how often you get takeout, the membership may or may not benefit you.
But maybe just don’t do it?
All of this being said, I’d actually urge you not to use these apps — especially for small restaurants. Not just because of the fees you’ll pay, but because it’s come out recently just how much these services charge the restaurants. In the most extreme example, a restaurant had $1,042 in charges and got only $376 after fees.
In other words, all these recent Postmates commercials about supporting your local community are pretty much BS. Yes, it’s better for the local business than not ordering food at all. But they’ll get substantially less than if you just order directly and pick it up yourself.
Obviously, there will be times when going to get your food yourself just isn’t an option: if you’ve been drinking, if you’re too sleep-deprived to drive, if you’re too sick to go anywhere, etc.
But if you have the option of leaving the house for a quick outing, I’d strongly suggest you just suck it up and do it. Not only will you save money, but you’ll also be making sure small restaurants get the full cost of your food.
Do you guys use these apps?
Cynthia McClure says
We are so far out in the country no one will deliver here, or if they would, the price would be way more than the cost of the food. We have only gotten take-out twice since the whole pandemic began and we picked it up. We won’t do it again. None of the employees at either place were wearing masks! We live in an area where people think the wearing of masks is a liberal lie. Sigh…..
Abigail says
Oh dear, I’m sorry the people around you feel that way. On the other hand, I guess you’re saving on takeout? A reader pointed out in a comment recently that the CDC thinks it’s difficult to get COVID from food. But it still feels like an unnecessary risk and/or I don’t want to support businesses that don’t make their employees wear masks.
Honey Smith says
I pay $10/month for uber eats membership. Delivery always free for orders over $15 and 10% off the restaurant fee. (I don’t drive)
Abigail says
Argh! I forgot to mention the memberships. I meant to put that in there. Sigh. I’ll add a mention now. Thanks for the reminder! (And I’m glad you’ve found something that works for you, since you don’t drive. Another good reminder that people are in different situations, so money-saving tactics will look a little different from person to person.)
Chris@TTL says
We’ve been using DoorDash, Postmates, and GrubHub during the pandemic more for little treats / “nights out” as a small way to still feel connected to our local places.
I’ve had pretty good experiences across the board, though I know that restaurants lose a pretty big cut to their fees.
Also, DoorDash just started a pretty big series of promos this week. I think they mostly rely on being a “DashPass” member (which is free for most Chase cardholders), though.
You’ll find details with a quick google, but summarizing:
“DoorDash: ‘Summer Of DashPass’ Promotions ($15 Off $15+, $20 Off, $15 Off, & $15 Off)”
That $15 off $15+ is solid.
Chris@TTL recently posted…How Much Money Is Enough? Build the Life You Want, Then Save.
Abigail says
Yes, I meant to mention the membership option. Can’t believe I forgot that aspect! Thanks for the reminder. I think DashPass is only available free for the Sapphire cardholders, though. Not for all Chase cards. I’ll investigate to be sure.
spiffikins says
I have only used it once – when I was on vacation in a town where I didn’t know the area, was exhausted from driving all day and the front desk had told me the downtown area, where the restaurants were, had all the roads blocked off that evening for a festival of some time, so google maps was not going to help me, plus finding parking was going to be an issue.
It worked out well for that one time – the service I used, DoorDash, I think, offered me a free delivery as my first delivery, so it only cost me the tip.
Recently I read that when COVID-19 started and the shelter in place orders came down, all of these delivery services started offering discounts and deals – but the restaurants had to make up the difference behind the scenes. So while people were trying to support their local restaurants by ordering delivery, it was actually costing the restaurants more than usual.
These days I have a couple of restaurants that I do takeout from – I stick to a couple in a probably vain effort to restrict my “bubble” of interaction with people 😀
Abigail says
Yeah, on vacation I can definitely see a delivery app making sense when you’re tired and just want to eat in the room. I almost feel like I’ve seen fewer deals (from Postmates, anyway) than usual since the pandemic started. I thought maybe they just didn’t need the offers as much now that people are more inclined to use them no matter what. But maybe that’s just Postmates.
Ann says
I have the Door Dash membership through my Chase card. I have used it twice and only had to pay a tip. I figured if I ate in the restaurant I would have to pay for a tip PLUS expensive beverages so it was cheaper and safer than dining in. I tip higher than the suggested minimum. My son used to deliver pizzas so I know that the drivers need tips! Yes my Chase card has an annual membership but it flew me to Hawaii last year first class so it is worth it!
I use Instacart as well with a membership through Chase. Publix has deli items that are like a restaurant to so it is another option. There is no tip for curb service so I can stay safe get a half gallon of milk, a bag or ice and a rotisserie chicken.
There is no fee or tip for Walmart. I buy more than half of our supplies there. I shop for my family and my parents. I figure between Instacart and Walmart, it saves me about 3 or 4 hours a week. One neat perk with Walmart. They often substitute more expensive products if they don’t have what you ordered. I now put “Sam’s Choice” in my cart knowing I have about a 1 in 5 chance of getting a better product. So far I haven’t been disappointed with the store brand.
Abigail says
I heard something similar from another Walmart customer, so I guess it’s somewhat common. I’m glad you’re getting an upgrade some of the time. And yes, delivery is *definitely* safer than dining in, so I’m glad you chose that option. And yeah it sounds like your Chase annual fee is well worth it. Nice that you get the added bonus of free delivery.
Revanche @ A Gai Shan Life says
We’ve been doing our best to stick to take out that we can pick up safely too, though we had occasionally used DoorDash and GrubHub when we had credits and coupons before we found out how little the restaurants get on those orders. We’re doing our best to make the best of the choices we have, support local, and not take unnecessary risks.
Revanche @ A Gai Shan Life recently posted…Living in the time of pandemic: COVID-19 (11)
Abigail says
It’s a delicate balance to be sure. I think I’ll keep delivery apps as an option if I’m housebound for some reason and truly can’t force myself to eat what’s here. But by and large, I’ll try to choose the option that gets the restaurant the most money.
Middle class revolution says
Even though I don’t order food delivery that often, I wish I learned about these tips sooner! I have been ordering via yelp and not getting any cash back. I also should look into first time customer offers.
Middle class revolution recently posted…Retired by 50?
Abigail says
Well hopefully you get some good deals now!
Donna Freedman says
Is it okay to give a cash tip to the driver when s/he arrives? Or does that get them in trouble with the service, I wonder?
When I took a rideshare from a hotel in D.C. to Union Station, I asked the driver if perchance he knew where to pick up the Megabus there. If not, he could just drop me at the main entrance. He said, “I know exactly where it is and I will take you there.” And he did: dropped me so close to the buses that I could have hit one with a spitball.
So even though the tip had been factored in when the ride was booked, I gave the gentleman a cash tip. He saved me a longggg walk when I was already so tired I couldn’t see straight. Yet I won’t say which rideshare in case he’d get in trouble.
Donna Freedman recently posted…Back to school giveaway: $500 Visa gift card.
Abigail says
You can tip however you want, I suppose. Most people just do it through the app — and tips aren’t touched by the delivery service. But since they wouldn’t mention tips to the service, I don’t see how cash ones could get them in trouble.
Glad that your driver was so nice and accommodating!
Teinegurl says
As a former Grubhubber and Uber Driver cash is king because you don’t have to report cash tips to IRS plus it’s just nice to have.
Abigail says
Well, technically you DO have to report cash to the IRS. But yes, it’s unlikely the IRS would know that you weren’t reporting the odd cash tip now and again.
carrie says
I’m not a user of any of these services, we just don’t eat out (or in…) that often. But I got a DoorDash gift card from my boss back when our state shut down that I haven’t used yet. I’m a Chase Freedom cardholder so I looked into the free offer. Turns out it’s just for 3 months, and once you activate, you’re signing up for the service to continue – discounted at first, then the full price on a monthly basis. So I held off for now since we’re not ready to use the gift card. I need to make sure I could cancel after the free 3 months too. Just a heads up for anyone else who wants to look into that…
Abigail says
Ah, thanks for the heads up! If I sign up, I’ll have to make sure to mark the calendar to cancel. I hope when the time does come, you greatly enjoy whatever you end up ordering from DoorDash!
Teinegurl says
As former Grubhub driver here (I pretty much stopped since 2020 started) all good tips. I like to think people would use it as a treat for yourself or if you have a party or something like that but you wouldn’t believe how many repeat and regular customers there are! Like no judgement at all but I’ve had people ordered two drinks from Starbucks which one would be kinda melted by the time you got to you and two incredibly expensive almost double what you would but ahh job security? When we were on lock down I gave in and ordered pizza from Dominos, Grubhub, Bite Squad on average of about once a week just because simply I was just tired of running to the grocery store and cooking breakfast, lunch, and dinner 24/7. It was well deserved treat and I always tip. I even chased after a driver to giver her a tip. I’ve delivered to people who were pregnant, one with broken leg, mom stuck at home with two very young kids, disabled people, one guy who was on house arrest (!), vacation, and people who work two jobs. So it can be interesting.
Abigail says
Yep, there are a lot of times people truly can’t go out and pick up food themselves. I’m glad other people’s GrubHub habit helped you out. And yes, everyone — even without a pandemic — deserves a break now and again, so I’m glad you allowed yourself that treat.
Alice says
I haven’t used the apps. Pre-pandemic, we ordered delivery rarely, and only from places that offered it directly from the restaurant itself. In our old neighborhood, that meant a pan-Asian place. In our current one, it was Domino’s. And we always tipped.
I did have groceries delivered from my grocery store one time about two months ago– my daughter had developed a cough–it turned out to be asthma, but we didn’t know that at first, and I didn’t want to do the wrong thing by going to a store directly until we knew what was going on. The grocery store runs its delivery through Instacart. I personally wouldn’t do it again unless the situation was dire– about 1/3 of our order ended up being substitutions and the substitutes generally weren’t actually true substitutes. (Along the lines of: asked for onions, got potatoes.) I tipped well when I placed the order and didn’t change the tip once I discovered the problems: we got food into the house without potentially putting others at risk, and that was the important part.