Overview
On Monday Grubhub announced a permanent policy that removes delivery and service fees for any restaurant order exceeding $50. The change is positioned as a response to “challenging economic times” and aims to put more money back in customers’ pockets.
Key Details of the New Policy
- Applies to all restaurant orders over $50, regardless of location or restaurant type.
- Average fees saved per qualifying transaction are about $13, based on industry data.
- The waiver is permanent, not a limited‑time promotion.
How Grubhub’s Offer Differs from Competitors
DoorDash and Uber Eats typically limit fee waivers to short‑term promotions or subscription services such as DashPass and Uber One, which often have additional restrictions. Grubhub’s blanket, permanent elimination for large orders is unique in the sector.
Potential Impact on Customers and Restaurants
- Customers can save up to $13 on each qualifying order, encouraging larger basket sizes.
- Restaurants may see higher average order values and increased repeat business.
- The move could improve Grubhub’s competitive positioning in a crowded market.
Integration with Claim Rewards
Grubhub recently acquired Claim, a startup that provides cash‑back rewards for local restaurant purchases. The combined offering allows users to earn rewards on dine‑in or pickup orders, further enhancing the value proposition.
Broader Market Implications
The permanent fee waiver signals a shift toward price‑focused competition in food delivery. If successful, other platforms may be pressured to introduce similar permanent discounts or to expand their subscription benefits.
Conclusion
By eliminating delivery and service fees on orders over $50, Grubhub is betting that lower costs will drive larger orders and stronger loyalty, while its acquisition of Claim adds a rewards dimension that could set a new standard for the industry.