New Study Reveals The Cities Paying The Highest And Lowest ‘Hidden Fees’ On Uber Eats
Food delivery has surged in recent years, with the pandemic accelerating its growth. Today, the popularity of food delivery shows no signs of slowing down. However, ordering takeout frequently can be costly. When you reach the checkout page on any of the food delivery apps, hidden fees often appear, making the final price unexpectedly high. Beyond taxes, these hidden fees include service charges, delivery fees, operation costs, and even auto-filled “suggested tips.”
CouponBirds, an online discount ranking website, calculated how much extra you pay in hidden fees when you order fast food delivery. They analyzed 164 of the most populated U.S. cities and compared the online prices, taxes, and additional fees for three fast food dishes commonly ordered on Uber Eats: Subway’s 6” Garlic Roast Beef Sub, Chick-fil-A’s 3x Chick-n-Strips Meal, and McDonald’s Double Quarter Pounder with Cheese Meal. Alaska and various cities in Wyoming were excluded due to insufficient data.
Key findings from the study reveal that Seattle ($12.16) has the highest hidden fees for takeout orders on Uber Eats, while Toledo, Ohio ($2.13) has the lowest average. Seattle’s top position isn’t surprising, given its reputation for high costs. A new law, enacted in January 2024, mandates a minimum wage for gig workers, including delivery drivers. This “Local Operating Fee” adds an additional $5 to your order.
Interestingly, Seattle’s hidden fees exceed the average costs in cities with the lowest hidden fees. For example, in Grand Rapids, Michigan, which ranks tenth for the lowest hidden costs, the average fee is just $2.74. It seems food delivery tends to be pricier on the West Coast overall; Washington ($7.80) and California ($6.42) top the list of states with the highest hidden fees. San Jose, Sacramento, and Tacoma also appear in the top ten, while New York ($6.24) ranks seventh.
Whether you support Seattle’s new minimum wage law or not, paying $7.86 for a Quarter Pounder With Cheese Meal compared to $4.66 in Hawaii makes a significant difference in your wallet. For the price of one meal in Seattle, you could enjoy nearly two 3x Chicken Strips Meals from Chick-fil-A in New Jersey. While factors like population, demand, median income, and state law contribute to these costs, it’s clear that hidden fees can be frustrating.
CouponBird’s study provides more insight into how hidden fees vary by city and state. Seattle isn’t the only major city to implement a minimum wage for gig workers; New York enacted a similar measure in July 2023. As food delivery continues to rise in popularity, this trend may become more common. Until then, you can save on delivery by ordering from nearby restaurants, using online deals, or simply cooking at home.
