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Home / Business and Economy / Delivery Apps Charge Up to 39% More for Groceries Than In-Store Prices

Delivery Apps Charge Up to 39% More for Groceries Than In-Store Prices

22 Oct

•

Summary

  • 7 out of 13 Aldi items priced higher on DoorDash
  • 11 out of 13 Woolworths items priced higher on MilkRun
  • Delivery fees of $5-$11 significantly increase grocery bills
Delivery Apps Charge Up to 39% More for Groceries Than In-Store Prices

According to a recent investigation by consumer advocacy group Choice, Australian shoppers are paying a premium for the convenience of rapid grocery delivery. The group compared in-store prices at Coles, Woolworths, and Aldi with the prices of the same items on third-party delivery apps UberEats, DoorDash, and Woolworths-owned MilkRun.

The findings are concerning - Choice discovered that on average, grocery items cost 11% more on these delivery platforms, with delivery fees of $5 to $11 further driving up the total cost. In some cases, the price difference was even more dramatic, with 7 out of 13 Aldi items priced higher on DoorDash and 11 out of 13 Woolworths items costing more on MilkRun.

The most expensive platform was UberEats, with baskets from Woolworths and Coles costing 39% and 35% more respectively than in-store purchases, even after factoring in delivery fees. Choice's editorial director Mark Serrels argues that there is "no reason" for consumers to pay more for basic grocery items just because they are being delivered.

Both Coles and Woolworths have defended the pricing structures, stating that products sold through third-party platforms often have a higher price point to cover the costs of offering instant delivery options. However, Choice found that shopping directly through the supermarkets' own online channels was consistently cheaper than using the delivery apps.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.
Aldi's price advantage is mostly in packaged and ready-to-eat foods, and the price difference for fresh produce is very small. When ordering through DoorDash, the added delivery fees make Aldi no longer significantly cheaper than other major supermarkets.
Choice found that 11 out of 13 Woolworths items were priced higher on the MilkRun delivery service compared to in-store prices. This price difference, combined with the delivery fees, significantly increased the total cost of the grocery order.
On average, grocery items cost 11% more on third-party delivery platforms like UberEats, DoorDash, and MilkRun. In some cases, the price difference was even higher, with baskets from Woolworths and Coles costing 39% and 35% more respectively through the apps compared to in-store purchases.

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