UnderstandingtheSuccessfulGrubhubBusiness Model:HowitWorks
Grubhubhasbecomeoneofthemostpopularonlinefooddelivery servicesinrecentyearsChicago,Illinois,servesasthecompany’s headquarters.Itwasestablishedin2004.Grubhubwentpublicon theNewYorkStockExchangein2014
Grubhuboperatesintwosegments:MarketplaceandRestaurants. TheMarketplacesegmentconnectsconsumerswithrestaurants throughitsonlineandmobileplatformsTheRestaurantssegment providesmarketing,delivery,andtechnologysolutionstorestaurants.
Grubhubmakesmoneybychargingacommissiononeachorderfrom restaurantpartnersandaconveniencefeetoconsumersThe companyalsooffersadvertisingopportunitiesforrestaurantsonits platformButhowdoesitmakemoney?Thisarticlewillexamine GrubhubBusinessModelandexplorehowitearnsrevenue.From commissionfeestoadvertisingincome,findoutwhatmakesGrubhub suchasuccessfulcompany!
HowDoesGrubhubMakeMoney?
Grubhubmakesmoneybychargingrestaurantsacommissionfor eachordertheyprocessthroughtheGrubhubplatform.Inaddition, Grubhubchargesrestaurantsasmallper-orderfeeformarketingand processingorders.
Inadditiontotherevenuegeneratedfromrestaurantcommissions, Grubhubalsoearnsincomefromdeliveryfees.Forordersthatare eligiblefordelivery,Grubhubchargesaflatdeliveryfeeof$7.99.For ordersthatarenoteligiblefordelivery,Grubhuboffersanoptional servicecalled“GrubhubPickup,”whichallowscustomerstopickup theirorderfromtherestaurantforasmallfee.
ALSOREAD:HowOnlineFoodDeliveryAppsMakeMoney?
RevenueStreamsforGrubhub
Grubhuboperatesinover4,000citiesacrosstheUnitedStatesand London,UK,andhasanetworkofmorethan300,000restaurant partnersTheGrubhubbusinessmodelgeneratesrevenuefrom varioussources,includingcommissionfeesfromrestaurants,Food Deliveryfeesfromcustomers,andadvertisingfeesfromrestaurants lookingtoreachmorecustomers.