I agree to an extent (about the services moving to the suburbs), but if the market's there as well, I'm sure the services are fine to squeeze out every last profit.
I do use Instacart for grocery delivery (Chicago), but I really dislike grocery stores and willing to pay the premium (avg +30% in my exp) to avoid that trip. Honestly, If I was in the suburbs, with a vehicle, I might be better incentivized to personally make the trip.
Another thing I forgot to consider is people that can't leave their home for reasons other than they are tired from work or just hungover. You can get much healthier meals delivered now, much better than the pizza and chinese food that were pretty much the only option years ago. Grocery delivery is much more prevalent now too so for those that can at least cook for themselves, they don't have to rely on a family member coming by with groceries.
I do use Instacart for grocery delivery (Chicago), but I really dislike grocery stores and willing to pay the premium (avg +30% in my exp) to avoid that trip. Honestly, If I was in the suburbs, with a vehicle, I might be better incentivized to personally make the trip.
All my own opinion though.