The Truth About Grocery Delivery and Pickup Fees

Grocery delivery services have become increasingly popular for consumers. Over half (51.8%) of American adults bought groceries online in 2024, according to Capital One. The firm adds that “Americans will spend $327.7 billion on online groceries in 2025; projections indicate that sales will reach $363.8 billion in 2026.”

However, the convenience of your grocery delivery comes at an additional cost. Estimates vary, with one study indicating potential markups of up to 23%. But despite the higher cost, there are ways to utilize the service while minimizing the premium cost.

WorkMoney put together a guide on what you need to know about grocery delivery services.

Why Grocery Delivery Costs More Than It Appears

When you order groceries, multiple businesses are involved in the transaction. The app you choose (i.e. DoorDash, Instacart), the business you’re ordering from, and the delivery driver. Each of these businesses aims to make money on your purchase, which drives the price hike compared to you shopping yourself.

Delivery services can use slick marketing phrases like “free delivery”, but that delivery isn’t free when the prices of items are higher when compared to in-store prices. Similarly, apps have stores listed with subtitles like “same in-store prices”, but may include fees and ask to tip drivers at the end.

Here’s a hypothetical example of two grocery store orders, and where the price differential lies:

This concept is known as drip pricing. This is where you’re charged several small fees after the initial price to hide the true total cost. It can be easy to overlook, but doing this regularly can be a real budget killer.

How To Save, But Also Have Convenience 

There are instances where you can buy back your time, and even potentially pay nearly the same amount by opting for pick-up service. Here are some factors to consider:

• Curbside Pickup: Many grocery stores and grocery delivery apps offer options for either in-store pickup or curbside pickup. This can help you save time wandering through the grocery store by having someone else collect your items for you. This can be a great way to stay on budget and avoid buying items you don’t need.

• Promotions/coupons: Delivery apps occasionally run promotions in their apps where you can potentially pay close to the regular retail price. Additionally, individual stores may run their own promotions within apps as well, so weighing out prices and your time are essential to find the best deals.

• Grocery store loyalty programs: Apps like Instacart allow you to add loyalty program benefits to your order, dropping your out-of-pocket cost even further.

• Credit card benefits: Many credit cards offer periodic credits for grocery and food delivery services. If you regularly use grocery delivery, this can be an easy way to cut your overall bill down, and potentially earn rewards simultaneously.

Grocery Delivery And Government Benefits

For households using government nutrition benefits, grocery delivery and pickup can be both a convenience and a complication. While access has expanded in recent years, the way fees and eligibility work can still shape whether these services actually save time or money.

SNAP benefits can generally be used to pay for eligible food items online, but not for delivery fees, service charges, or tips. Some retailers and platforms periodically waive delivery fees for SNAP users or offer reduced-cost memberships. Even with waivers, it’s still important to check whether online prices match in-store prices.

Be sure to check the SNAP dedicated pages on apps like Uber Eats, Instacart, and DoorDash to find out how you can use your benefits. 

The Bottom Line

Delivery apps give consumers the ability to save time, but that time savings comes at a cost of more money. However, there are ways to utilize these apps without paying a significant premium. If you’re receiving government assistance, you can use your benefits to receive delivery of the essentials you need.

But like any convenience, it’s important to understand the premium you’re paying, and see if there are cheaper alternatives to get the items you need.