Australian supermarket giant Woolworths has significantly expanded its online delivery network, now offering customers four primary ways to get their groceries delivered. While this provides greater choice, it also raises questions about cost and convenience compared to traditional in-store shopping.
The Four Contenders in the Delivery Race
Woolworths shoppers can now choose between ordering via the supermarket's own website, the rapid delivery service Milkrun (which Woolworths acquired in 2023), and two major third-party platforms: DoorDash and UberEats. The addition of DoorDash in December came soon after rival Coles ended its partnership with the platform to work exclusively with UberEats.
Woolworths reported that its "on demand grocery offering" now represents a substantial 40% of all its e-commerce orders, highlighting the growing consumer demand for fast and flexible delivery.
Putting the Platforms to the Price Test
To compare value, a consistent basket of six common grocery items was assembled across all platforms and in a physical store. The items were: a 750g loaf of Helga's traditional wholemeal bread, five Cavendish bananas, 2 litres of Pura milk, 2 litres of Omo Sensitive laundry liquid, a 1kg bag of Woolworths basmati rice, and a dozen Manning Valley free range eggs.
DoorDash listed the basket at $61.05. With a waived $2.99 delivery fee but a $7.33 service fee added, the total came to $68.88. DoorDash states its service fee for Woolworths orders ranges from $4.99 to $11.99.
On the Woolworths website, the same items cost $56.50. However, adding a $15 delivery fee for a comparable one-hour delivery window and a $2 bag fee skyrocketed the total to $73. The supermarket does offer a $2 delivery fee for orders scheduled at least five days in advance with a six-hour window, which would have made the total $60.50.
UberEats matched DoorDash's item prices at $61.05. With a promotional offer waiving the delivery fee, the total was $66.40 including a $5.99 service fee. Without the promotion, the total would have been $74.30.
Milkrun showed slight price variations, with the laundry liquid and rice being slightly more expensive, and the eggs and milk slightly cheaper, resulting in a basket total of $61.70. With a waived $5 delivery fee and no service fee, the total remained $61.70, with an estimated delivery time of 52 minutes.
The In-Store Benchmark
Purchasing the items in a physical Woolworths store proved to be the most economical method. The total came to $56.53, with the only difference being bananas sold by weight ($4/kg) rather than per piece.
The Verdict: Convenience Comes at a Cost
As anticipated, buying in-store was the cheapest option, though it requires the most time and effort from the shopper. The most striking finding was that using the Woolworths website for a quick, small shop was by far the most expensive delivery method, costing over $20 more than the in-store price when the $15 express delivery fee was applied.
For planned, larger shops, the Woolworths website becomes economical, especially when utilising its advanced booking system for low-cost delivery.
Among the on-demand apps, Milkrun emerged as the best value for money in this test, being both the cheapest and among the fastest, despite not being available nationwide. DoorDash offered a middle-ground, while UberEats was the most expensive of the trio in this instance, though it promised the fastest delivery.
A Woolworths spokesperson emphasised the supermarket's focus on meeting diverse shopper needs, stating: "Customers continue to demand more fast and flexible grocery delivery. Like in many services, there are additional costs when choosing an 'express' option."
The spokesperson also pointed to other convenient services like the free "direct to boot" click and collect when scheduled ahead, or a $5 express version for pickup within an hour.
The test clearly shows that for UK readers observing global retail trends, the trade-off between speed, convenience, and cost in online grocery delivery is a universal consideration. Savvy shoppers must weigh their immediate needs against their budget.
