Australians shopping at Coles, Woolworths, and Aldi could be paying as much as 40 per cent more for groceries when buying through some of the country’s most widely used food delivery services.
Consumer advocacy group CHOICE has revealed that using services like DoorDash, Uber Eats and MilkRun to get groceries from the major supermarkets could see you paying far more than if you popped into the store yourself.
The grocery delivery business is projected to be worth more than $15 billion in 2025, and a large proportion of Australians are using the services. Statista research found 30 per cent of customers are opting for convenience at a major cost.
But CHOICE said there are additional costs that many consumers may not even realise they are paying.
“Delivery costs, which may include service fees, delivery fees and sometimes bag fees, range from as little as $5 (for our Woolworths Milk Run order) to as much as $11.32 (for our Woolworths Uber Eats delivery),” the CHOICE report said.
“That’s to be expected, but the additional costs don’t end there.”
The grocery prices are more expensive, too.
Seven of 13 Aldi items cost more on DoorDash, while 12 of 13 Woolworths items were pricier on MilkRun. Source: ABC
CHOICE analysed prices across a comparable list of 13 grocery products and found that on average, items were 11 per cent higher via a third-party delivery service. Add delivery, service, and bag fees, and the overall bill can jump up to 39 per cent.
Incredibly, some were up to 42 per cent more expensive — with the “biggest markup” on a Coles ice cream cone four-pack.
In-store, they were $3.70, while on DoorDash, customers would pay $5.25.
CHOICE looked at a comparable basket of items to find out what consumers are paying for the convenience of rapid delivery via apps such as DoorDash, Uber Eats and Milkrun. Source: CHOICE
Customers didn’t know they were paying for ‘disorganisation’
Customers interviewed by CHOICE were unaware of the big differences. “I expect to pay for delivery and service, but not extra for the items,” customer Mel told CHOICE.
Milkrun customer Jo said she expected the prices to be the same, given the service is “owned by Woolies”.
She didn’t take issue with the delivery fee, admitting she was paying for her “disorganisation”.
Extra costs for Coles, Aldi and Woolworths shoppers
CHOICE editorial director Mark Serrels said getting groceries delivered “to your door within an hour” is ideal for Aussies with a “busy schedule”.
But the price shock might make you think twice.
Seven of 13 Aldi items cost more on DoorDash, while 12 of 13 Woolworths items were pricier on MilkRun. For all other comparisons, delivery apps always came out more expensive.
“If you purchase a 400g tub of Lurpak in-store from Woolworths, it’s $9. If you forget you’ve run out of spread for tomorrow’s sandwiches and place an order via Uber Eats, it will cost you a whopping $10.20,” Serrels said.
“Unfortunately, the costs keep adding up — there are also delivery costs, which may include service fees, delivery fees, and sometimes bag fees ranging from $5 to just over $11,” Serrels said.
“For Coles, we compared the products with what you’d pay in-store versus via Uber Eats and DoorDash. For Woolworths, we compared in-store prices to prices through MilkRun and Uber Eats, and for Aldi, we looked at in-store costs and the price when delivery was made via DoorDash.
“When we compared them, the flat fee for a fast delivery from the Coles and Woolworths websites was $15. This matched the price of our Coles orders from DoorDash and Uber Eats, but for Woolworths, the MilkRun order was the cheapest option.”
Groceries might cost up to 40 per cent extra when ordering from supermarkets via services like Uber Eats.
Supermarkets weigh in
The supermarkets told CHOICE that “higher prices reflect the cost of convenience”.
Woolworths said pricing on MilkRun was different due to the level of convenience offered, adding that all prices were clearly marked and delivery fees clearly disclosed.
DoorDash said higher prices reflect the additional costs of providing an on-demand service, “such as technology, operations and delivery logistics”.
Coles added that this “ensures we can offer the service to our customers wanting instant delivery options, particularly when they are in a time crunch,” and noted customers “offer better value options such as delivery or Click and Collect”.
Do you have a story tip? Email: newsroomau@yahoonews.com.
You can also follow us on Facebook, Instagram, TikTok, Twitter and YouTube.
