You know that feeling, right? It’s 2 a.m., you’re knee-deep in the latest Netflix addiction, and your stomach grumbles in a way that can only mean one thing:
It’s time for a late-night snack attack. But what are your options? Dust off the apron and break some eggs? Nope, that’s a disaster waiting to happen. Luckily, there’s a hero in our story, and his name is Grubhub.
You might ask yourself, “What in the holy guacamole is Grubhub?” Good question, my dear reader. Grubhub is like that superhero friend who swoops in to save your day or night when hunger pangs hit.
Imagine this. You’re stuck in the middle of an intense gaming session or a godforsaken Excel sheet with an approaching deadline. Cooking is as far from your mind as running a marathon in the Sahara. Grubhub says, “Fear not, buddy. Keep your eyes on the game (or that bloody spreadsheet). We’ve got your back—and your belly.”
Grubhub is your food delivery app, your digital bridge to a myriad of local eateries, pizzerias, sushi bars, and, yes, even that quirky little vegan joint downtown. With a few taps and swipes, you can order your favourite dishes, track their delivery, and indulge in your cravings without moving your fingers.
You’re probably thinking, “Alright, that sounds cool, but is this Grubhub thing actually popular?” Well, let me hit you with some juicy stats. As of 2021, Grubhub boasted over 20 million active users and partnered with more than 300,000 restaurants across the U.S. I don’t know what will if that doesn’t make you whistle in amazement.
Grubhub isn’t the only player in the game, though. Its competitors, DoorDash, Uber Eats, and Postmates, are all vying for a slice of the pie (or should I say, pizza?). So, how does Grubhub stack up against them?
Well, it’s like comparing Batman to Superman.
They’ve got their strengths and weaknesses. Grubhub has been around since 2004, making it the old-timer of the bunch, the Bruce Wayne of the food delivery world. It’s got a massive network of partner restaurants and a loyal user base. But, like Batman, it has its challenges too. More on that later.
Grubhub’s story is a bit like the tortoise in Aesop’s fable—it was slow and steady at first, then suddenly skyrocketed, and now it’s facing its fair share of hares trying to outrun it.
For the first decade, Grubhub and its fellow food delivery titan, Seamless, dominated their respective markets. They merged in 2013, creating a gastronomic Godzilla controlling 70% of takeout orders1.
But then, the landscape began to shift. Other players like Postmates, DoorDash, and Uber Eats entered the scene, bringing with them a new twist on food delivery. Instead of aggregating takeaways, they provided restaurant delivery services at higher commissions.
Grubhub’s CEO, Matt Maloney, once called this “the dumbest business you could ever be in,” citing razor-thin margins even with a 30% commission. But due to stock market pressure, Grubhub had to adapt and start providing delivery services to some restaurants too1.
Despite these challenges, Grubhub has shown commendable resilience, steadily increasing its revenue yearly since going public. It climbed from $500 million in 2016 to a jaw-dropping $1.8 billion in 20201.
Alright, so let’s get down to brass tacks. How big is Grubhub, really? Well, grab a seat because these numbers are going to make your head spin.
If these statistics don’t convince you of Grubhub’s market clout, I don’t know what will.
You might wonder, “What does Grubhub mean for my favourite mom-and-pop restaurant?” Well, it’s a bit of a mixed bag. On one hand, Grubhub can be a boon for local eateries.
Imagine you’re running a small Italian place famous for your lasagna. Grubhub comes along, and suddenly, instead of just serving the locals, your lasagna is being delivered all over the city. Your customer base just multiplied like rabbits in springtime.
But here’s the rub. Grubhub charges restaurants a commission for every order. So, while your lasagna might reach more people, each slice also feeds Grubhub’s bottom line. Whether that’s a fair trade-off or highway robbery depends on who you ask.
Grubhub isn’t the only big fish in the food delivery sea. A whole school of competitors is swimming around, each trying to take the biggest bite out of the market. So how does Grubhub keep from becoming chum?
It’s a bit like a game of survival. Grubhub has focused on forging partnerships with more restaurants and expanding its network. Remember the 300,000 restaurants in the 4,000 cities I mentioned earlier? That’s a lot of places to get your lasagna from1.
The future of Grubhub and the food delivery industry is like trying to predict the next big food trend. Will avocado toast still be a thing in five years? Who knows!
What we do know is that food delivery isn’t going anywhere. As our lives get busier, the convenience of having your favourite meal delivered to your doorstep will only become more appealing. But what does this mean for Grubhub? Will it continue to be a key player, or will it get out-cooked by the competition?
If you’re in one of the over 4,000 cities in the US and Canada where Grubhub operates, then yes! If not, well, it’s a great opportunity to brush up on your cooking skills1.
If your order gets messed up, first of all, I feel your pain. Nothing’s worse than expecting sushi and getting a sandwich. But don’t fret. Grubhub’s customer service is usually quick to respond and resolve any issues.
So, there you have it, folks. Grubhub, in all its glory and grit. It’s changed how we eat, how restaurants do business and reshaped the food delivery landscape. It’s had its fair share of ups and downs, but who hasn’t? Remember when you tried to cook that soufflé, and it collapsed? Exactly.
Grubhub has shown resilience in the face of competition and is a major player in the food delivery industry. Despite the challenges, it’s found ways to adapt and evolve; much like that cockroach you can’t seem to get rid of (but in a good way, I promise).
But, as we look towards the future, there are some big questions. Will Grubhub continue to deliver (pun totally intended) in the ever-changing food delivery market? Will it win back its market share? Or will it get out-delivered by the competition?
While we don’t have the answers (unless you’ve got a crystal ball lying around), one thing is certain. As long as there are hungry people and tasty food, services like Grubhub will continue to have a place in our lives.
So, next time you’re craving that midnight snack or too lazy to cook dinner, remember, Grubhub’s got your back. And your belly.
Until then, keep eating, keep exploring, and remember, no matter how bad your day has been, at least you’re not a pineapple on a pizza.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can’t wait to work in many more projects together!
Disclaimer
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