Demand for grocery delivery cools as food costs rise

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Demand for grocery delivery cools as food costs rise
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Demand for grocery delivery cools as inflation drives food costs higher

Then earlier this spring, Raschke learned her rent was increasing by $617 per month. Delivery was one of the first things she cut from her budget. Now, the 75-year-old walks four blocks to the grocery several times a week. She only uses delivery on rare occasions, like a recent heat wave.Raschke isn't alone. U.S. demand for grocery delivery is cooling as prices for food and other necessities rise.

That's causing some turmoil in the industry. Buyk filed for bankruptcy in March; Jokr pulled out of the U.S. in June. Instacart - the U.S. market leader in grocery delivery - slashed its own valuation by 40% to $24 billion in March ahead of a potential IPO. Kroger said its digital sales - which include pickup and delivery - dropped 6% in the first quarter of this year.

DoorDash also offers delivery from Target, but it charges more for each item on its website. The cart rings up at $39.90 from DoorDash, which then adds $12.18 in taxes and delivery fees. If the consumer adds a $10 tip, that totals $62.08. But earlier this summer, as gas prices approached $7 and a box of strawberries neared $9, she got serious about cutting costs.

But cost isn't the only reason some consumers are moving away from delivery. Cloutier says many customers are wary of the quality of items selected by workers.

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CP24 /  🏆 30. in CA

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