You’ve probably noticed your DoorDash order getting more expensive by the time you hit checkout.
That Thai food has become more expensive, and now the Competition Bureau is calling foul on certain pricing practices.
TheStreet reports that DoorDash and its Canadian arm are accused of deceiving customers for nearly ten years using a tactic known as “drip pricing,” potentially costing customers far more than the initial advertised price.
The hidden cost of convenience
According to the Competition Bureau, DoorDash has collected nearly $1 billion in mandatory fees from consumers through allegedly deceptive pricing tactics.
The lawsuit claims DoorDash advertises lower prices upfront, only to reveal additional charges as customers move through the ordering process, TheStreet reports.
Even more concerning, the Bureau alleges that DoorDash portrayed certain fees as taxes or regulatory charges when they were actually company-imposed fees.
DoorDash maintains that all fees are “clearly labeled and disclosed” throughout ordering.
Those appetizing menu prices can balloon once delivery fees, service charges, regulatory fees, and tips enter the equation.
Common pricing tricks to watch for
Some food delivery apps have mastered the art of incremental pricing. Here’s what can happen between browsing and buying, whether through DoorDash or other platforms:
- Service fees often appear as a percentage of your order total. These typically don’t go to your driver; they’re platform fees that pad the company’s revenue.
- Delivery fees vary widely based on distance, time of day, and driver availability. During the dinner rush, for example, the fee might jump, though you won’t know until you’re ready to check out.
- Small order fees can penalize you for not spending enough. Regulatory fees and local operating fees sound official, but may not be government-mandated.
- The platform might also display menu prices that differ from those charged by restaurants. Some items cost more in-app than when ordered directly from the restaurant.
Smart strategies to save on delivery
Pull up the restaurant’s website on your phone before placing your next order. Compare their listed prices to what the food delivery app shows. The difference might convince you to call in a pickup order instead.
Always scroll to the checkout screen before committing. Those promotional banners advertising “free delivery” often exclude service fees and other charges that still add cost. If the final price makes you wince, that’s your cue to reconsider.
Consider pickup options when available. Many restaurants now offer their own online ordering systems that bypass third-party fees entirely. You’ll need to leave the house, but saving on fees might make that drive worthwhile.
Stack your orders strategically. If you’re paying delivery fees anyway, coordinate with friends, roommates or family members to place one larger order rather than multiple small ones. This helps avoid small order fees and reduces the per-person cost of delivery.
When delivery apps make sense (and when they don’t)
Despite the fees, delivery apps serve a purpose. They’re genuinely valuable when you’re sick, working late, or can’t leave home. The convenience fee becomes worth it when the alternative is going hungry or losing productive work time.
Group orders for office lunches or family gatherings can also justify the expense. When splitting fees among multiple people, the per-person cost becomes more reasonable.
But for routine meals? Those fees add up fast. Ordering delivery frequently means you’re spending considerable money annually just on fees. That money could cover several nice restaurant meals where you’d actually enjoy the full dining experience.
Taking control of your food budget
The DoorDash lawsuit highlights a broader issue with modern convenience services: the actual cost is often hidden until it’s psychologically harder to back out.
Consumers must stay vigilant about these pricing tactics, whether the courts side with the Bureau or the company.
Start tracking what you spend on delivery apps versus what you think you’re spending. Many people underestimate their monthly delivery fees.
Once you see the real numbers, you might be motivated to dust off those cooking skills or rediscover the simple pleasure of picking up your takeout.
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