Back in 2004, the food ordering services were wearisome as it required for us to go to call the restaurant and request for the menu. Then we had to read the credit cards and address to place one order.

What a time-consuming process!

Matt Maloney and Mike Evans launched Grubhub in 2004 after experiencing this deficiency in restaurant services. Both were working on rental real estate search website and suddenly a bulb flashed.

How does grubhub work

Why not use the same idea for food delivery like the real estate search website. They collected menus from restaurants across Chicago and wrote code. That’s how Grubhub was born and the rest is history.

Their straightforward approach was creative- build something to solve a problem or if a solution already exists (phone ordering) then think of enhancing it further. (online ordering)

They cross-fertilized the idea of real estate with an online food delivery service which is a brilliant idea that led to the building Grubhub empire. 

Now I’ve got some stimulating list to know about how Grubhub works and what exactly it does including how to work for them.

 

What is Grubhub?

How does Grubhub work

What is Grubhub? You may have definitely heard of it or seen in the commercials but aren’t exactly sure how to use it or how it works. Let me enlighten you then!

Grubhub is an American online food ordering and delivery marketplace that connects diners with local takeout restaurants. 

It’s a service that has partnered with more than 85000 restaurants to offer delivery to those who don’t normally deliver. 

It has an effective and convenient web ordering system which gives you the freedom to sign in and order anything you crave.

 

How Does Grubhub Work For Consumers?

U.S consumers spend more than $500 billion on a restaurant in which $200 billion is spent on takeout and delivery. 10% of the $200 billion is done by Grubhub. It’s getting larger and increasingly competitive day by day.

How does Grubhub work

  • Browse

Users can browse through many restaurants to the food that will quench their taste buds and also hunt for offers from them. They can use the mobile app to the ordering it supports both Android and IOS phones too.

Customers can also refine their searches according to the time and location preferred by them.

  • Place an Order

After sifting through various restaurants and choosing the delicious dish you desire just place the order.

  • Payment Options

After placing the order the page will be redirected to the payment portal where you can choose to pay with any digital wallet you wish like PayPal, credit card or debit card or even cash on delivery.

Then the restaurants process the order and confirm it. Grubhub continues with the delivery of the food.

 

How Does Grubhub Work for the Restaurant?

The restaurant side of using Grubhub is fairly flawless and simple:

  1. The first step is to sign up with Grubhub and determine the marketing participation level. State the delivery fees with minimum order also.
  2. Set up your special menu, delivery details, offers, and other details. Note that customers either place the order through the app or the Grubhub website.
  3. Confirm the orders sent from Grubhub.
  4. Prepare the specific food and package it securely and attractively.
  5. Must be able to coordinate with in-house delivery staff or Grubhub’s on-demand delivery drivers.
  6. Makes sure all the items are given to the driver.
  7. Collect funds for the order. Grubhub deducts the commission payable.

Watch this video to learn more about how restaurants manage orders in Grubhub.

 

How Does Grubhub Work For Couriers?

How does grubhub work

Grubhub is a food delivery app, so of course, delivery is the most significant part of the business. It has a huge network of couriers to take care of these things.

Now let’s see how Grubhub works for couriers-

  • Order

As soon as an order is confirmed by the restaurant, the courier stationed nearest will be summoned to deliver the order to the location. If it’s possible for the courier to reach in time he must accept.

  • Pick Up

Once the courier accepts the order he must reach the restaurant as soon as possible and pick up the order and deliver it to the destination. The users can track the order because the courier will be updating it on the way.

  • Delivery and Tips

The courier has to reach the address provided by the user. If there is any delay then they can also contact the customers and ask for directions if necessary.

Since it’s not Japan, it is normal to collect tips too.

Additionally, Grubhub also provides pick up service. Here no couriers are involved. It gives tremendous exposure for the restaurants associated with the business.

Also, watch this video to know how drivers work for Grubhub.

 

What are the features that exemplify Grubhub’s success?

The users who have used Grubhub were reported as having excellent experience and there is a wide variety of options and features available for the customer.  

A lot of new features have the credit for the rapid success of this technology. It helped refine the search for diners to find food quickly.

  • Preorder

The diners can order up to 120 hours in advance and can change their order till the time of the day of delivery. 

It’s a benefit to those having a busy schedule because parents and professionals can plan the meal ahead of time instead of the last minute.

how does grubhub works

  • Map-Based Search

The unique gateway from this feature is the diners can filter the search results with an advanced map-based view of restaurants. We can see the exact location of the restaurants too.

  • Express Reorder

There will be already a history of orders available from your previous rendezvous, you can quickly order among them in just two clicks.

Grubhub is constantly on the lookout for features that are userfriendly and creative to meet the customers’ ever-changing needs. Apart from these, there is a personalized menu, order tracking, GPS system, rating courier and many more.

 

How does Grubhub make money?

The common question is how Grubhub makes money. 

When the customer’s order using Grubhub by choosing their choicest restaurants and after the order is delivered without any disruption they take a percentile as commission from the restaurant as a fee.

How does grubhub make money

The commission may range from 5% to 15% and it has been revealed that the standard pricing is 13.5% as of now.

Grubhub is the best platform for restaurants to market their menus in reaching a large consumer base. It works this way, 

Say I want to order a dessert from the restaurant and my obvious choice would some of the restaurants I’m familiar with but Grubhub still shows other exceptional choices on top of the search bar too.

Well, for the other restaurants to be in the top places they need to pay Grubhub, in this way it has created another source of marketing revenue. Grubhub has become a big name in the industry by being an ideal business model innovation.

 

How To Use Grubhub?

Getting started with Grubhub is quite easy. You can order from restaurants and diners with just a few clicks and never overburden you with options.

Let’s go through the steps to be taken to get started and order delicious food-

how does grubhub work

  1. Firstly go to the website and sign in.
  2. A new box pop up will open up with some fields for you to fill in like email and password. You can sign in through a new Grubhub account or facebook and google account too.
  3. When everything is entered click create your account.
  4. Revert back to the homepage and search for the restaurant and food you want. It will be easier if you enter the ZIP code and then search.
  5. Then Grubhub will show you the complete list of restaurants and foods to choose from them accordingly with customer ratings and reviews. It’ll show you the delivery time too.
  6. Look through the menu from the restaurant and see the pictures and prices of everything that they offer. Select the one you want.
  7. Proceed to checkout at the bottom of the order.
  8. Fill out your information in the form like address, Then confirm the breakdown of your order with the total. 
  9. Now it takes you to the payment portal, you can pay with any digital wallet like PayPal, credit cards and debit card even cash on delivery. There’s an option to leave a tip too.
  10. Finally, enter your phone number to receive the messages from the couriers and to get alerted for text messages from Grubhub.

That’s it you’ll get notified for the delivery time.

  • The Working of Grubhub app

Like the other apps, it’s pretty simple to use Grubhub. It’s available for both iOS and Android. You can download the app in the Play Store or Our apps.

Now open the app, if you’re using it for the first time give the location details. Select the ‘delivery’ or ‘pickup’ depending upon how you want your food.

how does grubhub work

Next, give the complete address like the street number and house number too. On the next page, you’ll see a lot of restaurants popup choose one and add it to your cart and give the required details.

Cross-check all the details and proceed with payment options, choose the one you’re comfortable with and then click place your order. Now, wait wait wait! That’s it.

Don’t forget to open the door when they knock.

 

How to work for Grubhub?

People aren’t exactly sure who’s actually delivering for Grubhub. The delivery drivers are independent contractors working and paid for by Grubhub.

To work for Grubhub there’s no complicated procedure, you only need to fill out the application. Of course, they’ll look over your application and conduct a background check to see if any skeletons in the closet.

If you’re fit for the job and get approved you’ll be granted access to their app to pick up orders for real.

how does grubhub work

To Sum Up

In a nutshell, Grubhub is an excellent online and mobile food-ordering platform. It has developed into a leading food-ordering company with 8.2 million active diners and 85000 restaurants in its network with access to over 1100 cities.

Since its inception in 2004, it has been connecting diners with local restaurants. The collated data collected has revealed that tens of thousands of daily order reviews help Grubhub to put the right restaurant, food at the right time.

Recently, Grubhub launched its skill on Amazon Alexa where the users can order from their past orders on Alexa. This is another achievement of how the data is being leveraged without using their laptops or phone.

In my belief, the company is doing an incredible job by presenting the recommendations and data to help the hungry diners accordingly.  It has completely revolutionized the landscape of ordering food.

FAQ

  • How does GrubHub make money?

Grub hub takes a commission fee from each order. The company usually generates revenue when diners place an order on the GrubHub platform.

  • What percentage does Grubhub charge restaurants?

The percentage may range from 5% to 15%. Grubhub charges 13.5% as an average commission from the restaurants as a revenue.

  • How Grubhub Works?

Grubhub is an on-demand food delivery platform, partnered with more than 85000 restaurants. It charges commission percentage from these restaurants which may range from 5% to 15%.

  • How does Grubhub delivery work?

Grubhub is a channel to order the food and get it delivered at the doorstep. Customers will order the food from their favorite restaurant and GrubHub delivers it at a convenient time.

  • How does Grubhub work for restaurants?

The restaurant side of using Grubhub is fairly simple, just sign up with Grubhub and set up your menu, delivery boundaries. The next step is to confirm the order from Grubhub then prepare the food and pack it correctly. Ensure all items for the delivery is secure then collect funds.

Have you already tried Grubhub? what do you think about Grubhub? Do leave your Comments