Supermarkets exposed for 'shady' grocery markups
Aussie shoppers are paying up to 40 per cent more for groceries by ordering them using delivery apps like DoorDash, UberEats and MilkRun, according to consumer group Choice.
These inflated costs go well beyond delivery charges, says Choice Editorial Director Mark Serrels.
The grocery items themselves are also being marked up, the group has found, with Aussie shoppers paying more than they would for the same products in stores.
Aussie shoppers are paying up to 40 per cent more for groceries by ordering them using delivery apps. Supplied
Choice's investigation found individual items were on average 11 per cent more expensive when purchased via a third-party delivery service, but some items were as much as 42 per cent more.
They found adding delivery app charges alongside the product prices increased the total order cost by up to 39 per cent.
"We spoke to a lot of people through doing this investigation and very few of them really understood that they were also going to be paying more for the goods themselves, so that to me is the shady part of this," Serrels says.
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"We did reach out to almost every supermarket and they all pretty much universally said the same thing, that it was the cost of convenience ... I don't think that's fair.
"I think you've got to be transparent with that stuff. If you need to make more money, charge it through the transparent fee, not through charging sneakily extra for items.
"There's absolutely no way you could possibly know, unless they made it transparent on the site, which they're not going to do."
Both Costco and Aldi joined Coles on DoorDash earlier this year. Coles, Woolworths and IGA are all available via UberEats.
MilkRun has been owned and operated by Woolworths since 2023.
Choice decided to look into the grocery prices of major supermarket retailers across these popular food delivery services.
Choice's investigation found individual items were on average 11 per cent more expensive. Choice
Thirteen grocery products were chosen for the comparison, and the difference quickly became clear.
"For Coles, we compared the products with what you'd pay in-store versus via UberEats and DoorDash," Serrels explains.
"For Woolworths, we compared in-store prices to prices through MilkRun and UberEats, and for Aldi, we looked at in-store costs and the price when delivery was made via DoorDash.
Thirteen grocery products were chosen, and the difference quickly became clear. MilkRun
"Of the 13 items we compared, seven of the products from Aldi were priced higher on DoorDash when compared to the price you pay in-store.
"Twelve of the 13 items were priced higher on a Woolworths MilkRun order, and for all other comparisons, the prices for each item were higher when purchased via the third-party service when compared to what you would pay if you actually went in-store.
"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 UberEats, it will cost you a whopping $10.20."
Even some Aldi products via DoorDash were priced higher than in stores. Aldi Australia
The biggest markup Choice discovered was for Coles Vanilla Ice Cream Cones 4-pack.
They were just $3.70 in-store but you'll pay $5.25 which 42 per cent more through DoorDash or Uber Eats."Unfortunately, the costs keep adding up," Serrels says.
"Here are also delivery costs, which may include service fees, delivery fees, and sometimes bag fees ranging from $5 to just over $11.
"When we compared, 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."
A Coles spokesperson responded to our request for comment on the findings.
They said: "Like most merchants, including retailers and restaurants, products sold through third-party delivery platforms such as Uber Eats and DoorDash are often a higher price point compared to shopping directly.
"This ensures that we can offer the service to our customers wanting instant delivery options (particularly when they are in a time-crunch).
Coles has confirmed products sold through third-party delivery platforms 'are often a higher price point'. 9Honey
"However, for customers who prioritise value and want to access our in-store pricing and full range, they can shop via Coles Online, which offers home delivery and Click and Collect options."
DoorDash sent nine.com.au the following statement via a spokesperson.
"DoorDash is focused on giving customers choice, and good value, whether that's shopping in-store or using a fast and convenient delivery option.
"For retailers like ALDI, the partnership expands accessibility and convenience without compromising their commitment to quality and value.
'DoorDash works to ensure that every customer can see item pricing and any applicable fees ... ' Aldi Australia
"The average ALDI customer buys around more than 20 items per shop on DoorDash, meaning that delivery-related fees make up a far smaller share of the total order.
"When looked at through that lens, the overall difference in cost is significantly less than the figure being quoted.
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"DoorDash works to ensure that every customer can see item pricing and any applicable fees before checkout, so they understand exactly what they are paying for.
Woolworths, Aldi, and UberEats have also been contacted for comment. 9Honey
"The price customers see represents the value of a reliable, on-demand delivery experience, supported by DoorDash's technology and operations."
An Uber spokesperson told nine.com.au: "Merchants partner with Uber Eats in a variety of ways, and we're proud to offer over 60,000 partners across Australia – including grocery and convenience retailers – the flexibility and control to choose what works best for them.
"Each merchant sets the prices for their items on the Uber Eats platform, factoring in things like ingredient or product costs, supply chain pressures, and day-to-day operating expenses. This flexibility ensures that every merchant can run their business on their terms.
"Each merchant sets the prices for their items on the Uber Eats platform." Getty
"We know that convenience is important to customers, and we're continually working with merchants to provide a wide range of options that balance value, selection, and reliability."
An Aldi spokesperson responded to nine.com.au: "At Aldi, we're committed to delivering the best value to our shoppers and that extends to DoorDash.
'At Aldi, we're committed to delivering the best value to our shoppers and that extends to DoorDash.' Nine
"While there is a cost to convenience, many everyday essentials match our in-store prices."
Woolworths has also been contacted by nine.com.au for comment.
Today Money Expert Joel Gibson told Karl Stefanovic and Sarah Abo this morning that "the markup is really what's shocking for people" when it comes to the Choice findings.
'The mark up is really what's shocking for people.' Getty
"We all knew we were paying a delivery fee. Did we know that we were sometimes paying a 42 per cent mark up."
Gibson added that fast grocery delivery services can be an "absolute Godsend" but savvy shoppers should "probably avoid doing it all the time".
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