How does Grubhub Work?

Have you witnessed the growth of GrubHub? Are you interested in transforming the food delivery system just like GrubHub does? Do you wish to develop a food delivery app like GrubHub? If yes, here is your answer. This blog answers all the questions related to “how does GrubHub work,” “How online food delivery applications like GrubHub make money,” and “What are the features of the GrubHub app that attracts users.” Keep reading to know more.

One app that is taking over the online food delivery segment seamlessly is GrubHub. The online food delivery application GrubHub has been appreciated across multiple platforms, n-number of times. The application satisfies the diners in the most beautiful, and unique way. The experience is much talked about, but I would only say it has revolutionized the ordering takeout food experience.

GrubHub has marked solid footsteps in this genre, that it is surprising many entrepreneurs with its success. Entrepreneurs are in awe of the success and wish to develop a similar food delivery app like GrubHub. And which is why we thought of coming into the picture. We have a niche in on-demand app development, and it is our dream to help startups and big giants to build an app of their dream. Kody Technolab, a leading food delivery app development company, also offers a flexible hiring model if you wish to engage with us in one way or the other.

We will begin this blog by describing the GrubHub application in brief. It will give you an idea of how the entrepreneurs have embarked on their journey and what they have achieved to date.

GrubHub is an excellent food delivery service app having its headquarters in Chicago. It was founded by Matt Maloney and Michael Evans in the year 2004 and operates in around 4000 cities across the US.

This online food delivery application is like a survival application, especially for youngsters grinding themselves in the 9 to 5 jobs. The application allows users to swiftly browse the restaurants and the menus and place their orders. Within no time, the application grabbed the IPO status in the year 2014 (whoa.. Just 10 years and this huge success).

This is not the end. If we believe the reports, it says that GrubHub has acquired popular food delivery services like Seamless, Eat24, AllMenus, and MenuPages. Now I guess this is some kind of impressive information about their huge success story.

Moving forward,

Business Model of Grubhub

How does GrubHub work?


GrubHub provides a heaven’s way for food lovers. It lets them connect with local restaurants and have their food delivered to their doorstep. GrubHub has an extensive network of restaurants, say almost 300,000 restaurants work under its umbrella.

GrubHub has leveraged various modern technologies that have helped them in delivering an exceptional dining experience to the users. The application has almost 22.62 million active users as per the 2019 report. I am sure the number would have skyrocketed the expected number of users.

The application is available on iOS as well as Android platforms. The GrubHub interface is easy to use, and it streamlines the entire food delivery application.

In order to get started with GrubHub


Users need to sign in the application using their email address or passwords. However, if the user doesn’t want to add their access to the application, they can create an account on the platform itself. By filling up some basic information, the user can enter the application.

After signing up, the user lands upon the home page where s/he enters the area zip code in which they want to find a restaurant.

Once the user enters the zip code, the application displays a list of restaurants registered within the defined zip code. The display list shows a picture of the food dishes, pricing, and customer ratings.

Whichever restaurant the user selects, they will be directed to the restaurant page immediately.

They can browse through the menu to find out the delicacies they want to order. Additionally, some of the restaurants also allow users to customize their orders.

When the user is ready with the final order, s/he moves to the checkout page; the checkout page requires the user to add some basic delivery information such as an address, contact number, etc. After the user completes filling up the delivery information, they need to fill up the payment information.

This is everything that happens at the customer’s forefront—now talking about the restaurant owner and the delivery person’s screen.

The restaurant receives the order and notifies the same status to the user.

The restaurant prepares the order and packs it for the delivery executive.

The delivery executive receives the order pick-up request and heads to the restaurant.

The order is collected by the delivery executive and delivered to the customer at their doorsteps.

We are coming now to features of a food delivery business model like GrubHub. We will discuss the food delivery app features in GrubHub.


Customer screen:

Signup Browse restaurants Browse Menu Order Placement Customize order
Payment Option Personal/Delivery address Doorstep delivery Order tracking Feedback and Review

Restaurant Owner screen:

Restaurant register Receive order Confirm order Prepare Order Update status
Assign delivery executive Deliver order to delivery executive Customer support Call to the delivery executive. Accounting and Reports

Courier service screen:

Account setup Order receipt Contact information Restaurant pick- up
Call to restaurant GPS service Call/message to the user

What is the USP of GrubHub?


GrubHub’s business model is of high attraction amongst restaurants and diners. The application offers excellent services to users as well as restaurant owners registered with the application.

It offers the shortest and the quickest way for customers to order their food meals.

The services of GrubHub are available 24*7;

Customers can order from the favorite restaurants and track their orders in real-time.

Restaurant owners can have access to a large pool of audience.

Restaurants can swiftly manage the deliveries.

Business Model of Grubhub

How does GrubHub make money?


As much as the business model of GrubHub matters, the revenue model holds equal importance. The revenue model of a food delivery application may differ from application to application. If we talk specifically about GrubHub then,

GrubHub charges a delivery fee on every order placed using the application. No doubt the fees are assigned to delivery executives, but the company shares some commission from it.

GrubHub also charges a certain amount of fee from the restaurants. This adds to the revenue stream of the application.

GrubHub also earns a considerable amount of money from in-app advertisements. The restaurants who wish to advertise their services pay a little extra than the others to attract more customers.

There are many other ways in which free apps can make money. We have already highlighted some of the ways in the blog; please read it for better understanding.

Concluding Thoughts:


A frictional food delivery application service provider like GrubHub is every entrepreneur’s dream. It provides the best in class service to its customers and savors the on-demand food needs.

If you have any questions about developing an app in this segment, we are here to help you. Feel free to discuss your project ideas and make the best out of them. All the best!


ABOUT THE AUTHOR
blog author - kodytechnolab

Sanjay Kidecha

CMO


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