Two weeks ago, I presented Grubhub to the class, an online and mobile food delivery service that has over 20% market share in the digital delivery market. As promised, this follow-up blog post will give you an inside look into the resources available for Grubhub’s restaurants, as well as Grubhub’s key partnerships.
Inside the Grubhub Restaurant App:
As you learned in my presentation, Grubhub has thousands of restaurant partners across the United States. While I was able to discuss the key features of their user app, I did not have time to address their Grubhub for Restaurants app, a major contributor to Grubhub’s success.
Since Grubhub’s performance is based primarily off of the amount of orders that a restaurant receives, their business model is geared towards making restaurants as profitable as possible, rather than burning them dry. Through Grubhub for Restaurants, Grubhub encourages businesses to give up over 13.5% of their commission, often the rate required to join the Grubhub delivery platform, by providing business owners essential tools to run a successful restaurant.
Once restaurants decide to partner with Grubhub, they are given access to Grub Central. This is a website that gives restaurants the ability to customize their Grubhub page, manage their incoming and past orders, update their menus, and manage their financial statements and transactions. These tools ensure that all Grubhub partners are structured to grow and to provide the best client service possible. When a restaurant joins Grubhub, they are given the tools necessary to:
- Upload their own pictures to personalize how they want users to view their restaurant. Restaurants have complete control over their restaurant profile. They can upload any food photos that they want to appear on Grubhub’s search results, a header (equivalent to a Facebook Cover Photo), their logo, as well as optional menu photos so customers can see what their food would look like prior to ordering.
- Customize and update their menu to reflect any specials, additions or discounts available. Grubhub’s restaurants have complete control over what information is available on their menus and are able to edit the material for specials, discounts and changes at any time. Through this system they also can create labels (i.e group each item under characteristics such as Italian, Organic, Gluten-free) to make it easier for customers to locate the specific food that they are looking for.
- Manage regular and pre-scheduled catering orders, see order details and confirm and manage their transactions. As mentioned in my presentation, efficiency and communication are key to Grubhub’s success– the more orders they fulfill, the better the restaurants, and subsequently Grubhub, perform. Grubhub for Restaurants tracks delivery drivers, allows restaurants to send out automatic progress notifications to customers, and provides a detailed description of the customer’s order to restaurant employees. In addition, it organizes all orders into different sheets, providing a breakdown of how many future, unconfirmed, currently in house, or out the door orders an establishment has.
- Oversee and manage the company’s financials. At any time, Grubhub’s restaurants have access to current and past financial statements, transaction and deposit histories as well as their current account balance. With the breakdown of their revenue readily available at any moment, the Grubhub for Restaurants financial tool set allows businesses to monitor their progress — a key asset for future growth.
Grubhub has helped thousands of restaurants grow by connecting them with their advanced technology and extensive customer network. By providing them with competitive management, financial and teachnology systems, restaurants are positioned to succeed when they decide to join Grubhub. On average, it has been calculated that restaurants collaborating with Grubhub have increased their number of orders by over 30%.
A Breakdown of Partnerships:
In addition to providing restaurants with key tools and services, Grubhub has positioned itself to be a major competitor in the digital delivery market by making its services available on a variety of platforms. Below is a breakdown of three of Grubhub’s top partnerships thus far:
- Apple: Grubhub partnered with Apple to create apps that are compatible with Apple’s iOS system and the Apple Watch. In addition to this, they created a Grubhub app for the Apple TV in 2015. The Grubhub Apple TV app differs from the typical Grubhub mobile app, as it is personalized to TV users. Instead of searching for a specific food or restaurant, users scroll through menus and mouth-watering food pictures in order to eliminate the amount of text input required to find and place an order. With Grubhub for Apple TV, users no longer have to move their eyes from their favorite shows to order in takeout. With the simple press of a few remote buttons, users are able to simultaneously order in dinner while watching a show, giving a whole new meaning to the term TV dinners.
- Groupon: This past July, Grubhub partnered with Groupon to allow Groupon users to place orders directly from the Groupon website. This collaboration benefits both companies greatly, as it allows users to use Groupon coupons when placing an order through the Grubhub app. This has maximized both Grubhub’s and Groupon’s customer base. As stated by Matt Maloney, Grubhub’s CEO, “Groupon’s massive, active mobile audience – and great savings opportunities – will help drive new customers and more order volume for our restaurant partners, further enhancing the value of the Grubhub network.”
- TripAdvisor: In May, Grubhub announced that it would be working with TripAdvisor to make it easier for tourists to find and order food from local restaurants when traveling. Similar to Grubhub’s partnership with Groupon, TripAdvisor users are able to search and order from the Grubhub platform directly from the TripAdvisor website and app. Through this collaboration, Grubhub is reaching out to an even broader audience, maximizing their target market to those traveling across the United States.
As you can see, Grubhub is making it increasingly difficult for competitors to compete in the mobile and online food delivery industry. Still, this market is becoming more competitive as Facebook even just announced a new “Order Food” feature that partners with some of Grubhub’s biggest competitors, such as DoorDash and Delivery.com.
In my opinion, only time will tell which mobile and online food delivery service will gain dominance. But i’m curious to find out what you all think. Is Grubhub doing enough to maintain its competitive edge?