Food delivery fees in Canada, explained
A delivery order carries up to five separate charges, and only one of them is called a delivery fee. Here is what each one is, what it typically costs in Canada, and what a $30 order actually comes to on a percentage-fee app versus one flat $4.99 on MinuteBasket.
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The five charges on a delivery order
Two of these are stated plainly at checkout, two are optional, and one — the menu markup — never appears as a line item at all, which is why most people never notice it.
1. The delivery fee
What you pay to have the order brought to you. On most Canadian apps it varies with distance and demand, roughly $3.99–$8.99. On MinuteBasket it is a flat $4.99 on every order, near or far, peak or quiet.
2. The service fee
A percentage of your order value charged for using the platform — commonly up to 15% in Canada. Because it scales with the basket, it is the charge that hurts most on a family order. MinuteBasket does not have one.
3. The menu markup
The invisible one. Delivery apps charge restaurants a commission on every order, and restaurants recover it by listing higher prices in the app than in the shop — usually 5–15% more. Nothing at checkout tells you it happened. Because MinuteBasket takes no commission on the food, partner menus carry in-store prices.
4. The priority or express fee
An optional charge — around $5.99 — to move your order up the queue. MinuteBasket has no priority tier, so there is nothing to buy your way past.
5. The subscription
A monthly membership that waives or reduces delivery fees, typically $9.99 and up. It does not remove the service fee or the menu markup, and it only pays back if you order frequently. MinuteBasket has no subscription — everyone gets the same pricing from their first order.
Fee structures side by side
| Charge | Other delivery apps | MinuteBasket |
|---|---|---|
| Service feeCharged as a percentage, so it grows with every item added. | Up to 15% of the order | $0 |
| Menu pricesMarked up to cover the commission the app charges the restaurant. | 5–15% above in-store | Same as in store |
| Delivery feeVaries with distance and demand on other apps. | $3.99–$8.99, varies | $4.99 flat |
| Priority / express feePaying to jump the delivery queue. | Around $5.99 extra | Not charged |
| Subscription for lower feesA membership needed to unlock reduced fees. | $9.99+ per month | None |
| Share of your tip keptWe never count a tip toward a driver’s base pay. | Varies by platform | 0% — drivers keep all of it |
Other delivery apps figures are typical published ranges for major Canadian delivery apps and vary by city, restaurant and order. MinuteBasket’s $0 service fee and flat $4.99 delivery fee are the same on every order.
What a $30 order actually costs
Take a $30.00 basket at the restaurant's own counter prices. On an app charging a 10% menu markup, a 15% service fee and a $5.99 delivery fee, here is where it lands — before tax and tip, which both platforms charge the same way.
| Line | Percentage-fee app | MinuteBasket |
|---|---|---|
| Food, at in-store prices | $30.00 | $30.00 |
| Menu markup (10%) | $3.00 | $0.00 |
| Service fee (15%) | $4.95 | $0.00 |
| Delivery fee | $5.99 | $4.99 |
| Total before tax and tip | $43.94 | $34.99 |
Menu markups we measure on real menus
We hold a comparison price for menu items on our partner restaurants, so the markup is not a claim — it is something we can count. Across 822 items on 8 partner restaurants, the median item costs 21.6% more on UberEats than the in-store price we charge, and the widest gap we currently record is 50.5%.
| Restaurant | Items compared | Median markup | Largest markup |
|---|---|---|---|
| Simply South — Mississauga | 164 | 28.6% | 50.5% |
| Yo! Sushi Mississauga — Mississauga | 153 | No difference | No difference |
| Pizza Pizza — Mississauga | 151 | 20.7% | 31.8% |
| Burger King — Mississauga | 119 | 25.0% | 25.1% |
| Bella'S Inasal — Mississauga | 74 | No difference | No difference |
| Domino's Pizza — Mississauga | 58 | 19.0% | 29.7% |
| Gabby'S Bar And Grill — Mississauga | 56 | 6.8% | 21.6% |
| Thairoomgrand — Mississauga | 47 | 5.0% | 16.7% |
Why MinuteBasket can charge less
Because we do not take a commission on the food. That single decision removes the reason menus get marked up, and it means we do not need a percentage service fee to make the numbers work. What is left is the actual cost of getting the order to you, which is the flat $4.99 you see.
It also means the restaurant keeps what it earns and the driver keeps the whole tip. There is no membership tier that unlocks fairer pricing, because there is only one price.
How to pay less on any delivery app
- Compare an item's price in the app against the restaurant's own menu before you order — that difference is the markup.
- Watch percentage service fees on large orders. A 15% fee on a $80 family order is $12 before delivery.
- Skip paid priority tiers; they buy queue position, not a faster kitchen.
- Do the subscription arithmetic: divide the monthly fee by the delivery fees you would actually avoid.
- Tip in the app only where the platform passes on 100% of it.
Compare MinuteBasket with each app
- MinuteBasket vs UberEats
- MinuteBasket vs DoorDash
- MinuteBasket vs SkipTheDishes
- Every city MinuteBasket delivers in
Delivery fees: common questions
What is a service fee on a food delivery app?
A service fee is a percentage of your order value that the app charges for using the platform. It is separate from the delivery fee and separate from any tip, and because it is a percentage it grows with every item you add. Canadian delivery apps commonly charge up to 15% of the order. MinuteBasket charges $0 — there is no service fee line on our receipts.
Do delivery apps mark up restaurant menu prices?
Frequently, yes. Most delivery apps charge the restaurant a commission on every order, and restaurants recover that by listing higher prices in the app than on the counter menu — typically 5–15% higher. Because the markup is baked into the item price rather than shown as a fee, it is invisible at checkout. MinuteBasket does not take a commission on the food, so partner menus carry in-store prices.
What is the cheapest food delivery app in Canada?
It depends on your order, because the charges are structured differently: a percentage service fee costs more on a large order, while a flat delivery fee costs more on a small one. On MinuteBasket the only platform charge is a flat $4.99 delivery fee, with no service fee, no menu markup and no subscription — so on a typical $30 order it works out cheaper than a percentage-fee app.
Is a delivery subscription worth it?
A subscription like a $9.99-a-month membership waives or reduces delivery fees, so it pays back only if you order often enough — usually several times a month — and it does not remove the service fee or the menu markup. MinuteBasket has no subscription, so there is nothing to break even on.
Does the driver keep the whole tip?
On MinuteBasket, yes: we take nothing from tips and never count them toward a driver’s base pay. Tip handling varies between platforms, so it is worth checking each app’s policy.
How can I pay less for food delivery?
Order directly where you can, compare the item price in the app against the restaurant’s own menu, watch for percentage-based service fees on large orders, skip paid priority tiers, and check whether a subscription actually pays for itself at your order frequency. Choosing a platform that charges no service fee and no menu markup removes most of the gap in one step.