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Recent Grubhub Developments Aim To Gain Edge Over Competitors


Photo courtesy of Nations Restaurant News

4 major new developments with regards to Grubhub are changing the face of its operations. 

1) Just Eat Acquisition 

Amsterdam-based Just Eat completed its acquisition of Grubhub just last month; the deal was worth about $5.1 billion. Just Eat completed this merger in hopes of “establishing a dominant global player in food delivery.” 

2) Grubhub Direct Service

The third-party food delivery service has established a new commission-free platform aimed to help restaurants build their online presence and brand during this tough time. According to founder and CEO, Matt Maloney, “independent restaurants have faced unprecedented challenges due to the impact of COVID-19… as restaurants rebound, we want to help them by opening our pipes and allowing restaurants to leverage our technology to grow their own brands and communities online.” Grubhub Direct will offer restaurants the ability to drive customers to a branded online ordering website. In return, businesses will  receive access to a number of free services including: website design; customer relationship management; order management; management portal; and loyalty and promotions. Although Grubhub will not charge any marketing or commissions on Direct orders, it has stated that restaurants will still have to pay “standard credit card processing fees and, optionally, a highly competitive delivery fee, only if the restaurant chooses to have Grubhub drivers deliver for them.” 

3) Grubhub Guarantee

The latest development for the company is Grubhub Guarantee, a program promising customers on-time delivery at the lowest delivery price – or the diner will receive compensation. According to the program, “if you find a better price with one of our competitors (at this time, only Doordash, Uber Eats, and Postmates are considered in this program), compare the total price of your Grubhub order to the total price from competitors and Grubhub will make up the difference up to $10, with an extra $5 in Grubhub Perks.” Additionally, “if an order arrives late, Grubhub will also send the diner Perks of at least $5 off to use on their next order.” 

4) Increased PR

Lastly, Grubhub has greatly increased its PR and is now “launching a marketing campaign, including a national TV spot, and social media pushes including major athletes.” 

All of these developments come in light of major controversy surrounding Grubhub’s, but all third-party food delivery services in general, high commission and delivery fees. The pandemic has popularized delivery services to new heights, and these services have been said to exploit businesses, and customers, by charging sky-high prices for marketing and advertising services, commission, and delivery fees. Ironically, Grubhub and others have stated that these prices reflect the fact that, despite raking in large increases in quarterly revenues, they are still operating at a consistent loss. 

Grubhub’s new CEO, Adam DeWitt, supported these developments in a statement explaining that “Restaurants work incredibly hard to create the best experience for diners, and we are helping to safeguard the reputations of our restaurant partners through Grubhub Guarantee.” 

Founded by attorneys Andreas Koutsoudakis and Michael Iakovou, KI Legal focuses on guiding companies and businesses throughout the entire legal spectrum as it relates to their business including day-to-day operations and compliance, litigation and transactional matters.

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This information is the most up to date news available as of the date posted. Please be advised that any information posted on the KI Legal Blog or Social Channels is being supplied for informational purposes only and is subject to change at any time. For more information, and clarity surrounding your individual organization or current situation, contact a member of the KI Legal team, or fill out a new client intake form.

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