The food takeout wars have been heating up as new entrants into the market set their sights on market leader GrubHub which currently controls 20% of the $70+ billion market. GrubHub is the most established online ordering service, with over 8.75 million active diners ordering more than 324,600 grubs a day in over 1,000 cities.
Enter your address into the Grubhub app or online here and a list of local restaurants appear. You can refine your search by type of cuisine, rating (one through five stars and up), time of delivery, price, or restaurants that have tracking for your order, restaurants that are new, or restaurants that have coupons.
- Special Promotions:
- Go Here for $7 Off Any Grubhub Order for New Customers.
I only had 25 restaurants on my list. Most of them require you to order about an hour in advance. Only one had an option to order 30 minutes in advance. Nearly every restaurant also had an additional fee, from $2 to $6. Make sure to plan ahead when making orders with any delivery service as it may take an hour.
Compare Grubhub to Yelp and Eat24
Yelp has more than 1 million restaurants reviewed on its site, it also owns OpenTable and UrbanSpoon where its users can make reservations at restaurants they have reviewed. Yelp’s purchase of Eat24 added online ordering of restaurant takeout food. For the restaurants that Eat24 serviced, which numbered about 20,000 at the time, Yelp added a widget to takeout diners’ orders after they reviewed the restaurant.
At the core of the services offered by both companies is an online ordering engine that quickly connects diners with the restaurants of their choice. Both of their applications, which are available on desktop and mobile devices, provide users with easy navigation experiences to search for restaurants by a multitude of criteria. With Eat24, users can find their restaurant directly through the Eat24 application or from Yelp’s review site. The list can be parsed by categories like “Top Rated,” “Distance,” “Newest,” and “Minimum Order.”
In comparison, GrubHub has a library of twice as many restaurants to order from. Both offer free delivery in one hour or less, notifications updating order status, 24/7 customer service and order recall. Eat24 relies on the restaurant’s own delivery driver or a third-party service. GrubHub has operated the same way in the past but uses its own drivers in certain cities. That gives GrubHub an edge in the delivery wars because the biggest complaint from food delivery customers is late delivery.
Grubhub has a larger footprint and has built a solid reputation for customer service. Eat24 is less established, but it has access to Yelp’s 130 million monthly visitors. If you use Yelp to look at restaurant reviews, you connect to Eat24 by clicking a button.
Update: Recently Grubhub bought out the Eat24 service from Yelp. They will now begin to combine the two to grow Grubhub.
Compare Grubhub to Postmates
One of the biggest problems with using Grubhub and Yelp Eat 24 compared to Postmates is that you cannot order from any restaurant. You can order anything from virtually anywhere with Postmates even if they do not have a relationship. You also are not stuck with trying to come up with a minimum order. Minimum orders are not a thing at all with Postmates are you can just order a Starbucks Latte if you pay the delivery fee. Although, Postmates does not offer ratings of restaurants to help you decide which ones are best they also do not let you use coupons. The best thing to find which app offers a better deal from the restaurant you frequent the most. One other benefit of using Grubhub is that when they give you a promo code you can use it towards the entire bill and you cannot do this with Postmates. For example. The current promo code for Grubhub is $7 off which you get off the total bill compared with Postmates you only get $10 off only the delivery fee and not the food or drink.
How Does Grubhub Make Money?
GrubHub’s success has been driven by providing a superior customer experience on both sides. For its restaurant clients, its online ordering platform provides an instant boost in takeout sales. For its grubbers, they promise a fully cooked made-to-order meal at their doorsteps within an hour of ordering.
Diners can even track their orders on a special GrubHub app. GrubHub charges the restaurants 14.2% of the food bill. Although it doesn’t charge diners for using its service, restaurants can apply a small delivery charge.
The food delivery business is still growing rapidly. The only way to determine which one deserves your business is to try them both and compare them to their next competitor such as Door Dash or UberEats.