The delivery charge not covering the extra costs is not the whole picture. The business is still (presumably) making a profit on the goods that they are selling. Providing a delivery service, even if it is subsidised, may get them customers they would not otherwise have. Most supermarkets seem to have an 'order value' at which delivery charges cease. Presumably, at this level the picking and delivery costs are more than paid for by the value (to the business) of the underlying sales, and the business still makes a profit on the whole transaction.
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