How Does Grubhub Work For Customers, Restaurants, And Drivers?

When an intelligent person struggles and doesn’t want anyone to scuffle for the same, they create a solution. This solution, sooner or later, flies high, giving competition to conventional good-for-nothing solutions. Today, tons of entrepreneurs fondly look forward to developing Food Delivery Apps like Grubhub. You are most probably one of them and want to know Grubhub’s business model too.

But do you know, Grubhub was also founded out of an annoying dilemma of searching for good local dining options?

When two real-estate-rental company’s co-workers, Matt Maloney and Mike Evans, couldn’t find better options for dinners, when they were frustrated with calling restaurants for take-outs and reading credit cards, this scenario emerged Grubhub’s idea. Both decided to implement the similar business model they followed in their real-estate-rental company to a new industry–online food delivery service.

Results?

Grubhub has provided nearly $9 billion food sales in gross to local takeout restaurants in 2020;
It processes over 745,000 daily orders;
It quenches the hunger of around 33 million active diners;
It features over 300,000 restaurants, of which 280,000 are across 4000 U.S. cities;
There are distinct brands operated by a single food delivery company, including GrubHub, Seamless, LevelUp MenuPages, and AllMenus.

Grubhub was founded in 2004, and it’s among the first to expect the rise in the on-demand economy and shift in customer behavior. Being one of the pioneers allowed Grubhub to take a solid market share of the food delivery market. In 2014, after remunerating ten years, Grubhub attained IPO status.

Now, let’s end historical talking and dive deeper into its crux. Are you ready?

Highlights Of Grubhub

I. Key Activities:

Customers can place an order by accessing the official GrubHub web app or speed up by ordering through its mobile app.
GrubHub doesn’t employ any of its couriers; instead, it hires independent contractors to deliver the order to the customer.
GrubHub manages the logistics through a separate panel to process the orders.
Grubhub never fails to fascinate its users and attract more by improving and introducing new features, thereby sustaining the top position in the food-tech realm.

II.KEY RESOURCES:

Grubhub uses a technological platform to attract and retain customers, streamlining the food delivery for restaurants that don’t usually deliver; and offers a convenient online ordering system for ones who do.
GrubHub partners with so many different restaurants and let customers order from diners and eateries from their locals.

III. KEY PARTNERS:

Majorly, there are two types of parties Grubhub collaborates with to reinforce its business. They are:

a. Restaurants: Grubhub partners with restaurants, diners, and food chains, helping them list their online stalls on the platform. They can leverage Grubhub’s massive customer base and attract new customers.

b. Delivery men: To deliver the thousands of orders placed on the platform, Grubhub constantly needs personnel who can deliver the order from restaurants to the customers at its earliest. Thereby, it offers an opportunity for everyone willing to work with Grubhub and make money at their convenience.

IV. KEY-VALUE PROPOSITIONS:

1) Customers

a. Customers are empowered to order meals at any time.

b. They can browse through the menus along with the prices of various restaurants.

c. Friendly 24/7 customer service.

d. Customers can track their order in real-time.

2) Restaurants:

a. Restaurants can increase their customer base and brand visibility, saving time and money from marketing expenses.

b. Restaurants can leverage a ready online platform to serve their customers conveniently.

c. Restaurants just need to pay a tiny commission for the food orders processed by Grubhub.

3)Delivery Men:

a. Anyone who wants to earn money by delivering orders can register on Grubhub and get started.

b. Grubhub offers an option for customers to give a tip for delivery men and has sent over $4 billion in total tips to drivers to date.

Made up your mind to make an app like Grubhub already?

How Does Grubhub Work For Its Customer Base?

To avail of the offer, customers first have to download the app or continue with the Grubhub website. Then, select sign in. They will direct to a screen with fields to enter email and password or choose Facebook or Google account to sign in. However, customers can also create their accounts quickly.
After logging in or signing up, they head back to the home page, and by entering their ZIP code, they can find the food nearby.
The next screen comes up with a list of registered restaurants on Grubhub in customers’ areas that are open to deliver with estimated delivery time. They can also search by food item or cuisines with a series of additional filters.
Customers can also select a restaurant and see menus, prices, and other contextual information.
Customers can select food and add it to their order. Everything they add appears on the right of the screen.
When customers are done with selecting food, they can proceed to checkout from the bottom of the order.
They will need to enter their address and continue to the payment method.
Grubhub offers multiple payment options, including PayPal, that users can select to complete the order. Moreover, there is an option to include tips in their payment or to pay cash.
If customers add their phone number, Grubhub texts them when their order is confirmed with approx delivery time.

How Does Grubhub Cooperate With Restaurants?

Similar to customers, restaurants can quickly sign up and become Grubhub partners. To help restaurants increase their visibility in their areas, Grubhub provides them with free resources and articles on the latest trends.

Once a restaurant becomes a Grubhub partner, they get their own Grubhub for Restaurant account with features like:

Manage the ordering process
Update the menu and live it on the Grubhub site
Upload logos and mouth-watering menu photos
Schedule a free photography session
Review financials reports
Review order history
Create promotions campaigns
Receive data-driven insights into how their business is performing compared to other local restaurants.

If any restaurant has its own delivery fleet, they can choose self-delivery at the time of sign up. Later they can receive orders through Grubhub and control delivery boundaries and fees from their own portal.
Regarding restaurant package pricing, restaurants have to pick a model from basic, Plus, and Premium packages. However, it offers 30, 60, and 90 days free trials for each package, respectively. Each has its own benefits and price.
Restaurants can start and stop receiving orders, manage their menu prices, and more without much hassle. There is no cancellation fee, and Grubhub charges a flexible marketing commission as low as 5%.
Restaurants can choose when they want to be paid, once a week via direct deposit or monthly via cheque.

How Does Grubhub Help Drivers?

Grubhub lets its drivers earn competitive wages, pay100% of their tips, and offer a flexible schedule. All they need to do is:

Sign up

People who want to work with Grubhub as drivers need to submit their application, driver’s license, and insurance to register.

Brace up

Drivers can get car decals, warming bags, and more from Grubhub or use their own.

Get ready

The driver panel onboard drivers covering topics such as the app introduction, scheduling, picking up orders, order tracking, and more.

Choose hours

In order to get started delivering orders, drivers can set their own schedule with working hours and hit the road!

Exposing top reasons behind Grubhub’s SUCCESS

GrubHub offers impressive features, making it an incredible platform for online food delivery services:

Grubhub tries to partner with and cover as many restaurants as available in the city, making its online delivering services omnipresent to the customers.
It gives discounts on various restaurant food to customers depending upon its partnership with the restaurant.
The app allows customers to rate the restaurant to help other customers know their food quality.
Grubhub also displays the average pricing of the food for each restaurant.
Customers can order online, and once it is prepared, Grubhub notifies the customers through their app. Thus, customers can choose to pick up their orders as well.

On that note, let’s wrap it up, hoping this helps you to understand how exactly Grubhub works.