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Grubhub waives delivery and service fees on restaurant orders over $50
Grubhub has announced a new policy abolishing delivery and service fees for orders over $50 to boost customer appeal in the competitive food delivery market. This permanent change follows the launch of a Super Bowl advert featuring George Clooney, aiming to save customers an average of $13 per transaction. This comes as Grubhub seeks to regain user growth, having seen a 20% decline in active users over the past year.
Key points
- Grubhub eliminates delivery and service fees for orders exceeding $50, aiming to attract more customers.
- The new policy is permanent, contrasting with competitors' limited-time offers.
- Average delivery and service fees are around $13 for large orders.
- Grubhub's effort follows a significant user decline, with active users dropping to 8 million.
- The Super Bowl ad features George Clooney promoting the new fee waiver.
- Recent acquisition of Claim aims to enhance customer engagement through rewards programs.
Why it matters
- The food delivery industry is increasingly competitive, with DoorDash and Uber Eats dominating.
- Grubhub's new policy responds to market challenges and strives for growth amidst declining user numbers.
- Historical context shows that similar strategies have been used by other companies in times of financial strain, aiming to attract users.
Grubhub's new fee structure aims to improve its market standing by directly addressing customer costs, setting it apart from competitors and attempting to recover from user growth challenges in a highly competitive industry.