How Does GrubHub Work? Complete Business Model Study

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If you are a person who is wondering what is GrubHub then let me tell you that it is a startup which helps in catering the food online and further deliver it to the customers in way which is very different, unique and very interesting.

Now you know what is GrubHub and you must be wondering that how does GrubHub work? They bring the food which is very sizzling to their customers in 2 possible ways, which are

You can order food from them online from many different restaurants which are located in the locality of yours by easily typing in your address. A partnership is being assembled by GrubHub and the restaurants in which a fleet which is dedicated to them is delivered to you.

  • Pick up

You can order the food from the restaurants and it will be prepared by them and further packed for you to pick up.

GrubHub is a company which does make sure that all of their diners do get the most amazing experience possible and they provide assistance 24/7 to their customers. Also there are coupons as well as deals provided by GrubHub which might come in handy at times.

This is how GrubHub works. This is a platform of food delivery which is in demand and GrubHub have made partnership with around 85000 restaurant’s which are in more than 1600 locations all across the United States of America which does process around 200000 orders each and every day.

what is grubhub

Business model of GrubHub

GrubHub is a company which has been growing very successfully since the year 2004 and they have achieved a great milestone. They became an IPO in the year 2014. The graph of this company goes upwards and has resulted in creating a business model which is very effective as well as creative. The revenue generation of this business model is also very promising.

In this business model we will discuss how does grubhub work in 4 simple steps

  • Search

It is very easy to search for restaurants as the customers can easily search in the list of restaurants and further select their food which is their favorite. Also the special deals as well as offers can be easily availed with the help of skimming throughout the community of restaurants through this platform.

Further the results can be easily refined with the help of selection process of the location and the order can be placed. This is how GrubHub works for the search process.

  • Place your order

After deciding your order you will find an option in which you can complete the transaction with the help cash or paying online.

  • Process

Once the order is received by GrubHub, it further redirects itself to that particular restaurant and the food is prepared by the restaurant and further packed for delivery.

  • Delivery

The delivery process is completed by the GrubHub delivery person who picks the order of a customer from a restaurant and delivers it to customer who ordered it.

This is complete answer to how does grub hub work?

GrubHub is a company which is very successful and has become huge because of the effective tactics which are used by them when it comes to marketing of the menu aggregators of resturants and the determination which they have when it comes to offering the customers the most amazing experience.

The unique and exiting options provided by GrubHub for their customers have made them very popular and a leader in this market.

There are some features of this company

  • There is a partnership between all of the resturants which are in cities and it does offer a wide variety of products to their customers.
  • Special discounts are provided by the company to their customers, which depend completely on the partnership.
  • There is a rating system which helps in the placement of restaurant which depends on the reviews given by customers.
  • The distance between the reaturant and customer location is provided by GrubHub to experience of their users great.
  • Average price of food, time of delivery, time estimation for customer’s order is also provided by GrubHub.
  • GrubHub also provided an option for pickup on their platform.

This will also help you to get the answer to how does grubhub work?

Customer Strategy of the company GrubHub

There are 2 customer segments of this company which will help you to know how does grubhub work, which are as follows

Restaurants

  • Many restaurants are there who look forward to expand the business with the help of GrubHub which helps in increasing the customer reach and also branding their business online.
  • There are
  • There are many food joints that want to deliver the food at the doorstep of their customers and don’t want to invest a lot of money in it as well.
  • Many restaurants are there that have storage when it comes to delivery persons and to fulfill the customer demand GrubHub is a great choice for them.

Users

  • There are a lot of people who don’t want to cook food dor their dinner and also want to enjoy food with their family in a good restaurant and they find this platform known as GrubHub very helpful.
  • Also, many working ladies who find it very difficult to carry their lunchbox to their office and prefer to order food.
  • We always people who love to try food of different places but don’t have time to visit each and every restaurant and that are where GrubHub steps in.

GrubHub revenue structure

The revenue structure is very simple yet it is very effective as well. This will make you question that in case of revenue structure, how does Grub Hub work?

Commission

There is a % of commission taken by GrubHub from all of the resturants for very order which is delivered.

It may vary from 5% to 15% which depends on the partnership. Average commission charges are around 12 to 13%

There are many restaurant owners who want to enhance the market presence of their restaurant in the market and further want to expand the customer base of theirs.

Advertising is there as well as in marketing plans made by GrubHub for the restaurants which help the restaurants to get featured in the top on the area search but for a limited period of time. The commission charges are also higher for them, around 20%.

how does grub hub work

All in All

This was the complete answer to GrubhHub how it works. This is an amazing business model to study and there are a lot of things to learn from them. The business model emphasis more on the customer satisfaction then earning more profit and this is GrubHub how it works.

I hope this article was helpful and if you have any questions then you can mention them in the comments.

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