The Financial Implications of Using Food Delivery Services
When was the last time you shopped for groceries online or ordered a meal from a fast-food restaurant or even a drink from a coffee house?
Millions of Americans have taken to their phones and the online space for their needs and wants during the pandemic lockdowns. Indeed, businesses have mostly reopened at this point. Nonetheless, many will continue to use delivery services because of the convenience and the habit that developed while in lockdown.
The question isn’t whether or not delivery services live up to their hype. A better question to ask is whether or not you should continue to use these services. It’s also worth asking how food and grocery services affect your budget.
It’s not within the scope of this article to make sweeping statements. However, we’ll go out and say that food and grocery services can be worth the money — albeit with a few caveats.
In this article, we’ll get into whether or not it pays to go food and grocery shopping online.
Worth It if You’re Pressed for Time
The USP (unique selling proposition) or value proposition of any delivery service is if it can save you a trip and avoid taking time off your hands.
Time is a valuable commodity. Businesses recognize this and cash in on the demand by offering service to time-crunched professionals or stay-at-home employees. Hence, if you value convenience more than saving money, then delivery services are worth your patronage.
If you do opt for using a delivery service, you’ll just need to be aware of the costs. For example, Amazon Fresh offers a subscription-based service that costs roughly $15.00 monthly. The shopping feature needs to be an extension to your Amazon Prime account, which incurs a separate fee.
Plus, some services provide alternative products if what you initially wanted was out of stock. This could lead to returns or general dissatisfaction and cost you some of that saved time.
It’s also the case if you opt for a shopping cart platform like Insta Express. In the case of Insta Express, you’re looking at a subscription fee of about $100 yearly.
Granted, these delivery and subscription prices may not be too steep for the average time-crunched shopper. Of course, if you’re saving money, every penny counts. Also, when you shop for yourself it may be easier to take advantage of deals you otherwise might be unaware of. Conversely, when you shop in person, you may be tempted to grab an item or two on impulse that you don’t necessarily need.
Worth It if You Live Far From a Grocery Store or Restaurant
With the prices of gasoline these days, it’s almost an act of madness to drive to a grocery store that’s miles away from where you live. Driving to a grocery store may not always be an option, especially for those who don’t own cars.
If this situation sounds a lot like yours, then a delivery service is worth it. After all, it’s a lot better than commuting with a supply of food that’s supposed to last a month.
However, perhaps the same can’t be said for fast food or restaurant delivery services. Groceries are of course a necessity. The same can’t be said for a restaurant meal. Also, the fees and tips can add up, in some cases 40% or more of the original meal cost.
While there will be costs associated with hiring a delivery service for food and groceries, think of the costs this way — what you get in return is perpetual access to food and groceries despite your proximity to a store. Also, if you throw in other perks like the convenience and increased savings for bulk purchases, the benefits of delivery services are a bit easier to see.
Hence, go ahead, and start using your Instacart or Amazon app, though you may want to double-check the costs of meal delivery services before placing an order for your favorite fast food.
Worth It if You Can’t Get to a Grocery Store or Restaurant At All
Whether it’s the aforementioned absence of a vehicle or the lack of ability to get to a grocery store, certain circ*mstances can bar you from buying food. This is where delivery services come in, and you should use them for situations where you can’t get to a grocery store — even if you’re saving money.
Now, you might be wondering what sorts of situations will prevent you from getting to a grocery store or restaurant. Let’s imagine that you don’t have a vehicle or access to public transportation, and the grocery store is too far away to walk to.
Unfortunately, it’s that time of the week — food shopping day. What do you do? Hop on your phone and do your grocery shopping or takeout ordering online!
Given your (imaginary) circ*mstances, the answer is clear. In short, if you’ve got no alternative but to opt for a delivery service, the costs aren’t just worth it — they’re a must.
Worth It if You Buy Occasionally and In Bulk
There’s an inherent inefficiency that goes with shopping frequently. There’s frequent use of gasoline. You’ll be paying for bus fares more often. As well, you’ll be taking more time out of your schedule to go food shopping.
When it comes to buying food for a whole household, the solution to slashing inefficiency is simple — buy occasionally and in bulk.
If you do this, you’ll be surprised to know that buying in bulk online can come out cheaper. Many platforms for online grocery and food shopping offer discount coupons. Coupons can also be used for purchases that meet a minimum amount or number of items.
Being eligible to use these coupons or discounts is reason enough to buy in bulk. Also, doing this means you don’t need to buy often. Shopping in bulk won’t just save you time, but you might also save money in the long run.
When To Skip Delivery Services
When is a delivery service not worth it? Let’s start with time. If you’ve got plenty of time on your hands, then you can probably do away with the extra expenses incurred from a delivery service.
Having extra time to go shopping also eliminates the need for delivery services. By using the extra two hours you’ve got to shop, there’s no need to pay someone else to run errands.
When a $6.50 mocha becomes a $20 drink. It’s hard to recommend overpaying to that degree, and we’ve seen the receipts that tack on the obligatory tip, and of course a delivery fee. Not to mention, many non-grocery delivery services mark up the costs of the meals. After all, the restaurant and the delivery service need to be made who on the exchange.
Further, if you live next door or just a block away from your nearest store or take-out place, save your money. You’ll be better off just walking. If you’re shopping for a large haul of groceries, a foldable shopping cart will cost a lot less than an Instacart subscription.
Key Takeaway: Budgeting Wisely Is Possible Even With Delivery Services — If You Need Them
At the end of the day, whether or not something is worth the money you pay comes down to your priorities. It’s no different when it comes to budgeting wisely and using delivery services.
Yes, grocery delivery services can be worth the money you pay for them. They’re worthwhile expenses if you need to buy groceries but can’t get to a store for whatever reason. In addition, they’re a sensible monthly expense granted that you’re in a financial position to choose convenience over saving money.
Of course, if you can do away with convenience and have the time, why not save your money and just walk?
Be sure to double-check the actual cost of using and relying on restaurant meal delivery. While a nice way to treat yourself occasionally, we can’t recommend using them routinely, especially if using them hinders your budget and ability to save and invest for your future.
