Food delivery has evolved from an occasional luxury into a daily habit that is creating a significant financial strain for young generations. Between high markups and the rise of buy now, pay later meal financing, the true cost of convenience is beginning to show its ugly teeth.
I’m Susan Ferrechio reporting for the Washington Times. Let’s take a look at how online food delivery is financially crippling some young adults in the U.S.
What exactly is driving the massive growth in food delivery apps?
The online delivery business, led by DoorDash and Uber Eats, was projected to generate a record $36.32 billion in revenue in 2025, up from nearly $32 billion in 2024. Revenue is expected to explode in the next decade as more people tap into the convenience of dinner delivered to their door.
DoorDash and fellow online food delivery services Grubhub, Instacart and Uber Eats paid millions to air Super Bowl ads featuring megastars like George Clooney, Ben Stiller, 50 Cent, Matthew McConaughey, Bradley Cooper, and Parker Posey.
Gen Z and younger millennials — specifically people aged 29 to 44 — are driving the online food ordering craze. Nearly 40% of people in this age group use a food delivery app at least once a week, a recent YouGov poll found. Among adult users of DoorDash, which is the nation’s most popular food app, 85% are under the age of 44. That makes roughly two-thirds of its audience young diners — consumers who grew up expecting immediacy, personalization, and mobile-first experiences, precisely what DoorDash aims to deliver.
How can a single meal end up costing double its original price?
Ordering through a food delivery app can really raise the cost of a meal. Those who order on DoorDash, Uber Eats, and other delivery services typically pay — in addition to the price of their food — a service fee of up to 10 or 15 percent. Then they have to pay a delivery fee based on the distance to their house and the demand at the time. They’ll also have to pay a tip to the driver and other potential fees for smaller orders or longer distances.
Here’s an example: a chicken sandwich with a side order of red beans and rice ordered from Popeye’s Louisiana Kitchen on DoorDash cost nearly $22 — or double the price of purchasing in person at the store.
What are the risks of using services like Klarna to finance a food order?
In March, DoorDash announced a partnership with Klarna that offers users options to finance their food delivery and pay for it later. The new deal with Klarna lets users split orders costing more than $35 into four interest-free installments. Critics warned young consumers to steer clear of this option to finance their food, warning that it could put them even further into debt. Each missed payment to Klarna incurred fees of up to $7, and total fees can rise as high as 25% of the order of the food.
How is this daily habit impacting the overall debt levels of Generation Z and Millennials?
LendingTree reported in January that 41% of buy now, pay later users paid late in the past year, up from 34% in 2024. The analysis said among those most likely to pay late were men, young people, and parents of young kids. Nearly a quarter of those who used a plan said they had three or more active buy now, pay later loans for food deliveries and other purchases. Those age 18 to 44 were twice as likely to take out the loans as Baby Boomers.
Why do some users feel this is a necessity?
Users of food delivery apps say ordering in gives them more free time for their children and relieves them from the exhausting daily chore of cooking and cleaning up. Some users say it improves their work productivity.
Why are older generations skeptical of food delivery services?
Baby boomers are expanding their use of food delivery apps, but they only make up about 10% of the mix. Generation X makes up about 12% of food delivery app users. These two generations say that the high cost turns them off, and they also complain that when the orders arrive, the food is cold and soggy.
What’s the biggest warning for people who have become addicted to using these food delivery apps?
Food delivery apps are a convenient way to order meals, but the costs add up quickly and can literally double the price of your dinner. Based on my reporting, my takeaway is: use it as an occasional convenience, but don’t make a daily habit of financing your french fries.
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