It’s (Grub)Hub Week

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.

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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:

  1.  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. screen-shot-2017-10-14-at-1-38-54-pm-e1508120696942.png
  2.  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. Screen Shot 2017-10-14 at 1.30.15 PM.png
  3. 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.  screen-shot-2017-10-14-at-1-29-30-pm.pngcustomerSMS.png
  4. 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.

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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:

  1. 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.960x540bb.png
  2. 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.”Screen-Shot-2015-11-23-at-9.09.38-AM.png
  3. 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.

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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?

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Sources:

http://www.chicagotribune.com/bluesky/originals/ct-Grubhub-apple-tv-app-bsi-20151109-story.html

http://investor.groupon.com/releasedetail.cfm?releaseid=1035152

http://fortune.com/2017/05/09/Grubhub-tripadvisor-partner/

https://restaurant-support.grubhub.com/hc/en-us

 

 

 

 

8 comments

  1. andrewmanginelli · ·

    The one thing I’ve always wondered about these food delivery services is how restaurants with existing delivery staff deal with them. I’d imagine it’s cheaper for a restaurant to pay a delivery person $2something an hour (because they live off tips) than pay GrubHub’s commission. However, I think that the risk of not going on GrubHub (not being found when someone’s scrolling through) may outweigh the costs. I’d be interested to see how restaurants are handling this.

  2. Great follow up to your presentation! The commission paid to Grubhub by the restaurants seem like a small price to pay, considering significant increase in the number of orders as a result of partnering with the online delivery app. I didn’t know to what extent Grubhub was committed to providing restaurant owners with tools to grow and succeed, but it makes sense now that you’ve clarified the business model. The ability to analyze and break down revenues looks like a particularly useful financial tool to have access to. Small restaurants can now observe, manage, and act upon consumer trends, most popular items, and the busiest order times without having to invest heavily on POS systems or software.

  3. s_courtney18 · ·

    I think the partnership with the Apple TV is yet another smart move by GrubHub! This will eliminate another barrier of using different devices to order through the website. Personally, I find myself ordering takeout when I’m glued to the TV and don’t want to leave–this is extremely fitting for both companies and hopefully GrubHub can make more partnerships like these with other smart TVs or smart TV systems.

  4. cgoettelman23 · ·

    Great job following up on your presentation!! I think that GrubHub is making excellent business decisions, especially with Apple and TripAdvisor. I agree with Andrew’s comment above about how restaurants handle GrubHub delivery drivers and their own. However, I still appreciate GrubHub for what it is, and for what it’s becoming. I love how transparent GrubHub is with the businesses and restaurants they partner with, and I’m excited to see what the future holds for them. Good job!

  5. Solid followup to an excellent presentation!

  6. Nice follow-up! I loved learning about Grubhub’s services to restaurants as well. It is interesting how they looked at the food delivery industry and figured out how to become a middleman to serve both the producers and consumers more efficiently.
    It seems to me that Grubhub is the most developed of the competitors. Its large market share and drive to innovate and partner with other companies are both key strengths. However, I was just reading on the Hustle how UberEATS reportedly made $3 billion this year while Grubhub only made $880 million comparatively, so it is obvious that they aren’t secure in their position at all. After all just look at what happened to Foodler!

  7. I’ve been getting a lot of emails from Grubhub this week – it looks like they just acquired Foodler, which I’d been signed up for. In terms of competitive edge… it seems like one of their tactics is just acquire the competition, which does seem logical to me. They’re gaining market share, though buying market share isn’t a generally-encouraged strategy, from what I’ve learned in other classes. It’ll be interesting to see whether they keep that up.

  8. emmaelennon · ·

    Interesting strategy! I wonder how much these services affect reviews on other sites such as Yelp, as many people cross-populate food apps like these. How much control do restaurants have over who delivers their food, if they receive complaints about late deliveries/cold food (which are often the fault of the Grubhub drivers)? Can they report “bad” drivers? In theory, people know that the restaurant is not responsible for the driver, but at the same time, I imagine most food-related complaints go to the restaurants themselves, which I imagine could hurt businesses.

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