How Does Grubhub Work – Everything you Need to know in 2019
Are you curious to know How Does Grubhub Work in 2019? Here we shared everything about How Does Grubhub Work?
GrubHub is an on-demand food delivery platform that delivers food from restaurants to customers at their doorstep. Grubhub is available for both iOS and Android. It was founded by 2 developers (Matt Maloney and Michael Evans) in 2004. GrubHub has acquired some well-known companies like Eat24, Seamless, etc.
GrubHub brings you tasty and healthy food in two ways –
Order: People can order a variety of dishes from numerous restaurants in your locality by just typing your address. GrubHub has also done partnerships with the various dedicated fleet which will deliver food to you.
Pick up: When you order a different variety of dishes from numerous restaurants in your locality then the restaurants will prepare food for you and pack it for you to get there and pick it up. A dedicated fleet delivers that food to your doorstep.
GrubHub Business Model:
GrubHub’s creative business model and revenue generation strategy lead to upward graphs.
GrubHub works on a 4 step dynamic model.
- Search: Customers can go through a list of a variety of restaurants and select their favorite food from them. Customers can also avail of special offers and deals on GrubHub. Customers can also refine the search results by selecting their location for placing the order.
- Place an order: Once the order is decided by the customer then the customer has to complete the transaction. Customer can complete the transaction by making an online payment (or opting for cash on delivery)
- Process: After the order is received then GrubHub redirects the customer’s order to the particular restaurant. The restaurant accepts or declines the order by looking at their availability, After accepting the order restaurants prepare and pack the order to get delivered.
- Delivery: GrubHub delivery personnel pick up the order from the particular restaurant and delivering it to the customer and completes the final step.
How does Grubhub work for consumers?
GrubHub Helps customers to save their time and money by giving them the option to order food online. Customers also have the facility to track their delivery after placing an order. GrubHub also provides 24*7 Customer Service to the customers. Customers also have the option to choose their favorite restaurant.
The consumers can order their food in the following steps:
Step 1: Browse
GrubHub provides a variety of restaurants available on the online portal. The consumers go through restaurants and their menus at their location. Once they have decided the restaurant they can browse the restaurants decide what they want to order.
Step 2: Place an order
Once the customer decides the food he wants to order, the customer has to place an order. The customer has to select the food items he wants to eat and add them to the cart. After that user set a delivery address for the order. After this process is completed GrubHub will ask a confirmation, and the user has to accept the application to reach the next step.
Step 3: Payment Options
When the User places the order then the application redirects him to the checkout page. In checkout, the user has to make the payment for his order. User can make a payment by using several options.. user can request a Cash on Delivery for their order or can pay through online medium.
Step 4: Waiting
Once the payment is done, the ordered the placed and the restaurant has to accept the order. Now all the consumer has to do is wait for the order to be delivered and get the order at their doorstep.
This is how Grubhub works for their consumers. It makes it super simple for the users to get food at their doorstep.
How does Grubhub work for the restaurants?
GrubHub provides an extended customer base to the restaurants. GrubHub provides software to restaurants to manage their deliveries in an efficient way.
Step 1: Notification
When the customer requested a meal from their favorite restaurant then the restaurant gets notified on its dashboard. Then the availability of the order required to be checked by the restaurants.
Step 2: Confirm Order
Once the availability is checked and get confirmed by the restaurant. Then the restaurant has to confirm the order on the dashboard. The consumer will get an update about the acceptance of his order and GrubHub will also notify the nearest courier about the delivery.
Step 3: Prepare and Pack
Once confirmation is done, the restaurant has started to prepare the order of customers. The restaurant has to prepare and pack the meal before the courier arrives.
Step 4: Handle it over
The restaurant has to only handover the parcel over to the courier once the courier arrives. The restaurant has to make sure that the packaged food should be convenient to transport and should not create a mess done according to the food being parceled.
How does Grubhub work for couriers?
Grubhub has collaborated with couriers that pick up orders from the restaurants and deliver these orders to the consumers.
Step 1: Getting order
When the restaurant confirms an order, the nearest courier stationed gets the notification about the order. if it is possible for him to reach in time then the courier has to accept the order.
Step 2: Pick Up
The courier has to reach the restaurant after accepting the delivery request. After reaching there he has to pick up the order and update the status in GrubHub. This helps the user to have a track on their orders.
Step 3: Delivery and Tips
After picking up the order, the courier has to reach to the customer address. Couriers and consumers can contact each other. Customers can also add tips for the courier. Courier reach the location to deliver the meal to the customer.
How does Grubhub make money?
Revenue is an important element for every business. GrubHub uses several tactics to make money. For better understanding here is a detailed revenue model of the GrubHub.
- Delivery Fees: minimal delivery is charged by Grubhub to the consumers. This fee is considered for courier but the GrubHub charge commission and takes a percentage of this delivery fee. This is one of the major sources of revenue.
- Commission Fees: GrubHub also charges a certain percentage from the restaurants. This helps GrubHub to increase its revenue cycle. This commission fee is charged to provide the restaurants immense exposure and makes it easier for them to reach a larger audience
- Advertisement Charges From Restaurants: GrubHub also provides sponsored posts. Grubhub takes advertisement charge from the restaurants and expand its reach. This helps restaurants to pop up in the consumer’s application and showing up is higher than the others This is also considered as an additional income for the company.