Survey: 77% of Americans Report Using Delivery Services in the Past Year

It may come as no surprise that, throughout the pandemic, the popularity of delivery services has ramped up. This not only restaurant delivery services such as Uber Eats, Grubhub, and DoorDash but also grocery services like Instacart and several other “to your door” courier options. Now, a survey commissioned by LendingTree and performed by Qualtrics finds that the vast majority of Americans have utilized some kind of delivery platform in the past year, with many also noting that they’ve been overspending on such services.

According to the survey, 77% of respondents used an on-demand delivery service within the past 12 months. Extrapolated, that amounts to 196 million Americans. However, it should be noted that Qualtrics included “retail delivery” options such as Amazon in their findings. In fact, retail delivery services proved the most popular, with 51% of respondents reporting having used one or more of them in the past year. Meanwhile, food delivery services weren’t far behind, with 45% of those surveyed utilizing them while 29% say they’ve used grocery delivery services.

Of course, with many delivery services tacking on various fees, the costs associated with ordering from these platforms can add up. To that point, the survey found that consumers spend an average of $157 per month on delivery services. These figures were even higher among Millennials and Gen Zers, spending an average of $208 and $206 per month respectively. Elsewhere, Baby Boomers saw a much lower monthly average of just $79. Overall, 29% of respondents say they overspend on delivery services — including 48% of Gen Zers and 39% of Millennials surveyed.

As one might imagine, a big reason why consumers keep turning to delivery services despite the costs is the added convenience. This led 70% of respondents to state that they’re willing to pay more in order to avoid such tasks as driving to the store, carrying items, etc. Furthermore, 37% of those surveyed said they’d be willing to pay up to $50 per month if it meant saving time while 14% said they’d spend up to $99 and 10% upped that figure to $149.

Although delivery service spending did increase during the pandemic, the survey also found that it was quite popular before that as well. 30% of respondents said they placed delivery orders at least once per week pre-pandemic, with this figure rising to 37% in the past year. Notably, even as venues reopen, perhaps making delivery less necessary than it once was, 45% of those surveyed expect that they’ll continue using these services at a similar clip as they did during the height of the pandemic.

On the one hand, the increasing popularity of delivery services could be beneficial to side hustlers as several platforms utilize an independent contractor model. But, on the other end of the equation, the fees associated with these services can really impact consumer’s finances — and not all of those fees go to the person making the deliveries. That said, the convenience of some of these offerings cannot be denied. Therefore, while you shouldn’t feel bad about splurging on delivery from time to time, it’s worth looking closely at the costs and determining if they’re really worth your money.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Hawaiian Airlines Introduces Enhanced Bag Benefit for Cardholders

When it comes to travel credit cards, there are several routes that consumers can take. For some, a generic catch-all card may make sense, while others may prefer to leverage their brand loyalty by adding a co-branded travel card to their wallet. With the latter, travelers can often enjoy perks specific to their preferred airlines or hotel, allowing them to save money and/or time. Case in point: Hawaiian Airlines and...

Debt Payoff App Tally Raises $80 Million

A well-known FinTech app that offers debt consolidation to consumers has just secured a major investment. Today, Tally announced that it had raised $80 million in its latest funding round. The Series D was led by Sway Ventures, while Menora Mivtachim along with previous investors Kleiner Perkins, Andreessen Horowitz, Shasta Ventures, Cowboy Ventures also participated. With the new funding, Tally plans to further expand its debt pay-down platform and continue...

Bilt Rewards Announces Rent Day Offers, Increased Earning Rates

Six months ago, the Bilt Mastercard became available to more consumers after Wells Fargo came aboard to issue the card. Since then, the unique rewards card has continued to expand its offerings, including debuting its own travel portal and adding travel transfer partners. Now, Bilt has unveiled its Rent Day promotion, that will bring new benefits and perks to cardholders. The Bilt Mastercard is a rewards credit card that, most...