What is GrubHub?

Everything is changing with the rise of technology, so why not the way we deliver food?

GrubHub transformed the food industry with the introduction of an on-demand food delivery service. It brings hot and sizzling food right to the customers’ doorstep with just a few taps and swipes. 

Grubhub partners with restaurants to bestow upon their users the convenience to order their favorite cuisine even from the places that don’t normally deliver food. Their impeccable service bridges the gap between customers and restaurants. 

The big questions are, how does GrubHub work? How to build your own on-demand food delivery service? How to be as successful as GrubHub?

Idea Usher experts have all the answers right here. 

GrubHub’s Journey to Success

With the aim of delivering food to the “tired people group” – bachelors and workaholics, who couldn’t find the time to cook and eat, Michael Evans & Matt Maloney came up with the idea of GrubHub. And it was an instant success.

The on-demand food delivery service began its operations in Chicago, Illinois in 2004, and is now present in 4,000 cities across the USA. 

GrubHub is in service of its users, restaurants & dinners, 24X7. Their robust website and application allow dinners to order food from 225,000 partner food joints and restaurants in the USA. 

Thanks to their impeccable service and exciting features, the start-up soared with success, and now has a total valuation of $2.7 Billion.

How Does GrubHub Make Money

The most important thing for a business is cash inflows and, ultimately, to earn profit to stay afloat in the market. How does GrubHub make money? How does Grubhub work, and how much does it cost to keep it afloat?

To understand all that, let’s have a closer look at its revenue model. GrubHub primarily earns through the following ways. 

Commission Fee

GrubHub charges a fee for serving the restaurants with a ready market on a platter. This commission fee is paid as a fixed percentage on every order the restaurants or food joints get from GrubHub. It forms the primary part of their revenue cycle.  

The commission percentage ranges from 5-15% and averages down to a standard 13.5% for each order. 

Delivery Fee

GrubHub charges the customers with a basic delivery fee, which majorly goes into paying the delivery executive. However, GrubHub keeps a percentage of the fee earned. 

Advertisement by Restaurant 

Some restaurants pop-up while consumers make their search and are seen and suggested much more than the other restaurants/food joints listed on the site. These restaurants are paying an advertising fee to GrubHub for a higher visibility rate. 

GrubHub, in exchange for a larger customer base, charges the ad fee, making an additional income. 

These are the major sources of revenue for an on-demand food delivery service like GrubHub. 

How Does GrubHub Work?

How does Grubhub delivery work? GrubHub connects customers with a variety of food joints and restaurants near them. They can place an order with the restaurant of their choice, and the food delivery executive brings it to their doorstep in no time. It seems pretty straightforward, doesn’t it?

Let’s discuss how GrubHub works through their complex web of customers, restaurants, and food delivery executive in detail. 

Onboarding

In order to make the whole process seamless for customers, restaurants, and delivery executives, there is a separate dashboard for each category of users. 

The user can download the app and sign up to GrubHub in a few simple steps. 

Placing an Order 

To know how does Grubhub works for customers, let us walk through the next step they follow after they have successfully signed up.

The customers can browse through various restaurants available at GrubHub and place an order by simply adding items to the cart and confirming the order. 

When adding items to the cart, customers can apply discount coupons, reorder a previous order, and enjoy many more exciting features. We will discuss them later in the article. 

Accepting the Order 

Once the consumers have successfully placed an order, the restaurant is notified. After checking the availability of the items ordered, the restaurant accepts or rejects the order. 

Once the restaurant accepts the order, the delivery executives nearest to the location get notified. They accept the order if they can reach the place in the stipulated time. 

Processing the Order

The next step, followed by the restaurant, is to prepare the delicious meal and hand over the order to the delivery executive. 

It’s the restaurant’s responsibility to get the meal ready before the arrival of the delivery executive. And of course, cook a delicious meal!

Delivery 

After the pick-up, the delivery executive reaches the assigned location on time, while the food is still hot and sizzling. 

The consumers can track the progress of their order and the location of the delivery executive. But, How does Grubhub work for drivers or delivery executives?

Their dashboard puts them in contact with the customer to contact them in case of delay or problems finding directions. 

Payment 

Are you wondering how does Grubhub pay work? 

GrubHub has a very flexible payment procedure. Customers can pay via Apple Pay, Android Pay, PayPal, eGift and credit cards, or good old-fashioned cash. 

Their mantra is, “What works best for you, works great for us.”

Feedback Process 

The last and most crucial step is the feedback process. 

The consumers rate their service and can write a review on the app. It helps restaurants and GrubHub improve their service and deliver only the best!

Now that we have understood the working of GrubHub for different users, let’s dive in further and know why they love the app!

Exceptional Features Offered by GrubHub

Wondering how does GrubHub app work to provide a breathtaking experience to all its users? 

We have the answers right here!

For Customers

The customer is the king, and making them happy is crucial. With these exceptional features, GrubHub creates a long-lasting relationship with the customers.

• Easy Onboarding – GrubHub has a very easy sign-up and login procedure in place. They also allow social login, making it quicker and easier for customers. 
• Online Payment – GrubHub has a very flexible payment procedure. Customers can pay via Apple Pay, Android Pay, PayPal, credit cards while placing the order however, they can also pay via cash on delivery of food.
• Pre-ordering – With the latest feature, customers can now schedule deliveries on GrubHub. But, how does Grubhub scheduling work? The user can pre-book their order up to 120 hours in advance. Working people love this new feature. 
• Re-ordering – GrubHub understands how busy the working people can be, so they can just re-order their favorite meal from the reorder tab and save an ample amount of time.
• Real-time Order Tracking – The users can track the status of their orders. They can track the driver while they are on their way and contact them if needed. 
• Map-based Search – This feature allows users to view the restaurant location in map-view and figure out how far it is to them. It enables them to gauge how long a delivery might take. 
• Exclusive Offers – GrubHub offers its users with discounts, offers, and several gift cards. But, how does Grubhub gift card work? The users can very easily apply for the gift card while checking out and placing the order. 

For Restaurants

The restaurant dashboard comes with many features that make their life easier. 

• Easy Onboarding –  GrubHub has an easy onboarding process for its users. The hassle-free process makes it easy for the local joints to get a robust presence in the market.
• Accounting Support – GrubHub maintains a record of invoices and order receipts for the restaurants. It stores the data of orders completed in one place, making it easy to keep track of the transactions. They can view orders completed during the month or quarter. 
• Manage Deliveries – The GrubHub restaurant dashboard allows users to manage deliveries and orders efficiently. Their software lines up all the orders and assigns delivery executives to each one. This organized structure has made the restaurant’s job easier. 
• Ratings and Reviews – The customers add reviews and ratings to the restaurant. The feedback is constructive in getting more orders and increasing the restaurant’s visibility on the app. 

For Delivery Executive

Let’s dive in and know-how does driving for Grubhub works?

• Easy Onboarding – The delivery executives have to follow a simple procedure to signup on GrubHub. They can view their current orders, ratings, and easily accept or reject orders in the courier application. 

• GPS Service – The GPS service provided on the driver dashboard allows them to find the delivery location with the utmost ease and It also suggests the most efficient route that saves time.

• Easy Contact – The delivery agents have access to the contact information of the restaurant and the customer. They can easily contact them in case of a delay or any discrepancies. 

• Managing Orders – The application keeps track of all the orders completed by the delivery executive. They can update the order status as ‘delivered’ and rate the customer as well. 

You can add a million other features that will enhance the user experience. Check out this blog to read about a few more essential features. 

Enter The Growing Industry

The on-demand food delivery service is growing with no intention of slowing down. GrubHub, Ubereats, and Doordash are the major players in the US market, leaving a lot of room for you to develop and grow.

As per reports by Statista, the revenue in the Online Food Delivery segment is expected to show an annual growth rate of 5.1% and reach a market value of $32,325 Million by 2024. The best time to enter the market is now!

Are you ready to build your own on-demand food delivery services like GrubHub?

Over To You!

We have laid down how does GrubHub works on a platter for you. Now it’s your turn to use that information and empower your business. 

This already thriving industry saw a spurt of growth in the COVID era, monetize the emerging trend, and open a room for infinite possibilities and growth!

Where to go from here?

Idea Usher is Your One-stop Solution

Our team has been in the business of delivering excellence for over a decade. Our clientele from the USA, Canada, and all across Europe rely on us for providing the best web development and app development solutions. 

We have a team of expert tech developers and experienced marketing wizards who will build you the best on-demand food delivery service! 

Contact us for a free consultation session with our experts today!