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Gephardt Busts Inflation: Nearly half of consumers say they’re overspending on delivery services

Aug 31, 2023, 10:10 PM | Updated: Sep 1, 2023, 8:35 am

SALT LAKE CITY — We’re not just talking packages from Amazon or last-minute pizza deliveries anymore. In recent years, we have seen just about everything become available for delivery.

From HP’s ink-by-mail service to companies that will deliver your laundered clothes. Heck, you can even buy a new car and have it delivered.

The pandemic, more than anything else, gave delivery services a huge shot in the arm as people did their best to stay home and social distance while some stores closed their doors to the public. But over three years later as stores have mostly gone back to how they operated before COVID struck, many of their customers have not.

“It does seem like it’s one of those pandemic-era phenomena that is sticking around,” said Matt Schulz of LendingTree.

The appeal is obvious – convenience. But as Americans struggle with inflation squeezing their wallets, the cost many pay for that convenience may be surprising. According to new research shared with the KSL Investigators by LendingTree, Americans who use these services spend an average of $407, per month. That is up 159% since 2021.

“It’s an eye-opening number,” said Schulz.

But he says what is perhaps more-eye-opening is the number of folks who say they got down the road with a delivery service without really understanding the costs. Then by the time they got to the cart just decided to check out without weighing those additionals costs, only to get hit by buyer’s remorse later. In fact, 44% admit to spending more than they can afford on delivery services.

“Life’s expensive enough in 2023,” said Schulz. “People’s financial margin for error is generally pretty tiny.”

The top three delivery services among people surveyed by LendingTree are retail at 54%, food at 42% and grocery delivery at 34%.

The survey also found that younger people spent the most a month, on average, on these services.

  • Millennials (ages 27-42): $575
  • Gen Zers (ages 18-26): $535
  • Gen Xers (ages 43-58): $282
  • Baby boomers (59-77): $153

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Gephardt Busts Inflation: Nearly half of consumers say they’re overspending on delivery services