How does Grubhub work?

It is natural to experience a sense of overwhelmedness when life gets incredulously busy. To counter such overwhelmedness, we learn to rely on service providers to make our lives easy. So one can rightly construe that the on-demand food delivery service has become a paramount need. Grubhub is one such business that has been around since 2004, with its headquarters in Chicago.

Grubhub functions as a website and a mobile application. Grubhub works to deliver food from restaurants to its customers through its delivery guys. So there are three groups- customers, restaurants, and delivery partners, actively involved in keeping Grubhub’s business going (and growing!).

Customers

Customers place orders on Grubhub after going through the restaurants and menus enlisted on the app. Grubhub allows users to pay online or in cash.

Restaurants

On ordering food, restaurants get notified. Restaurants then confirm the order placed by the customer and proceed to prepare the food.

Delivery Partners

Delivery guys working for Grubhub nearby the restaurant get notified when a restaurant confirms the order and makes the food ready for delivery. It is then collected and delivered to the customer.

How does Grubhub works for customers?

Users are required to create an account using the Grubhub app or website. Users order food from their favorite restaurants in the following steps:

Step 1: Browsing

The app lists restaurants and menus provided by them for users to browse and select food items.

Step 2: Order placement

After deciding on the item, the customer places an order. The app adds the item to the cart, after which the user has to confirm the order.

Step 3: Payment

Once the order is confirmed, the customer has to make a payment. Grubhub provides various modes of payment. Users can use options like credit cards, debit cards, PayPal, or GPay. Grubhub also makes cash-on-delivery options available for the customer.

Step 4: The wait

The restaurant confirms the order. Then the application assigns a delivery partner to take the food out to the user.

How does Grubhub works for restaurants?

Restaurants partner with Grubhub to offer delivery services. For this, the restaurants register with Grubhub. Let us look into how a restaurant’s part comes into play in the functioning of the food delivery business:

Step 1: Receiving the order

When the user confirms the order, the restaurant receives a notification. It contains details of the order which also includes payment details.

Step 2: The Order Confirmation

The restaurant confirms the order that it received, depending on the availability. After the confirmation from the restaurant, the user gets notified, and the nearby delivery personnel also gets notified.

Step 3: Preparation

The restaurant then jumps to prepare food and pack it in full swing. The food is ready for the delivery partner to pick up the order.

How does Grubhub works for delivery partners?

The job of the delivery personnel to collect the order from a restaurant and deliver it to the customer is the most crucial step in the whole food delivery platform like Grubhub.

Step 1: Receiving notification

As soon as a restaurant confirms an order, the delivery partner nearby gets notified. It contains details like restaurant name, address, delivery address, etc. The delivery partner/courier accepts depending upon their availability.

Step 2: Pick up

The delivery partner heads out to the restaurant to pick up the order to deliver it to the user’s location. Grubhub allows the customer to track the order.

Step 3: Delivery

The customer can contact the courier to inquire about any delay. Similarly, the courier can contact the customer for address directions. The customer, if opted for cash-on-delivery, pays cash.

Grubhub Pick-Up Service

Another unique feature that Grubhub has introduced is the Grubhub pick-up service. It allows customers who order through Grubhub to pick the order up from the restaurant without involving the delivery partner.

It saves minutes or sometimes even hours of having to go through the endless ordeal of waiting in long queues for takeaway.

Salient features of Grubhub

Grubhub provides a good user experience for its customers, making it one of the best on-demand online business models.

Customer’s Application
Account Creation
Listings
Search Option
Payment Option
Tracking Option
Ratings and Reviews

Customer’s Application

Grubhub ensures to provide a good user experience for its customers. The features that make up a part of the customer application are:

Account creation

The user creates an account on the Grubhub app or website. After which, the user enters details like name, address, landmark, and contact number.

Listing

Grubhub allows the user access to the page containing the list of restaurants. The restaurants enlist the food items.

Search option

The search option enables users to search and look up the restaurant and items. Applying filters can also help users narrow down their search and make up a decision.

Payment option

This option enables the user to choose a payment method. Online payment options include credit cards, debit cards, and GPay.

Tracking option

The user can track their order with the help of the tracking option. Grubhub allows the user to track the exact location of the delivery partner.

Ratings and Reviews

Grubhub allows customers to rate and leave reviews based on their experience and satisfaction with the delivery service platform.

Courier’s Application

Just like how the Grubhub application facilitates the user to perform functions, the app also allows the courier to perform certain other functions:

Account creation

The delivery partner/courier signs up with the Grubhub app. The delivery partner manages orders and deliveries through the created account.

Taking orders

The courier can accept to have an order taken on receiving notifications from the restaurant.

GPS Service

With the help of GPS service, couriers can find the exact delivery address. It makes it easy for them to deliver orders in unfamiliar areas.

Contact Information

The courier has access to the contact numbers of the user and the restaurant. If it becomes difficult for the courier to find the address, the courier can now directly contact the customer for directions.

Order completion

When the order gets completed, the courier updates the delivery status on the Grubhub app.

Restaurant Dashboard

Grubhub provides a restaurant dashboard for restaurants to operate. The features of this dashboard are:

Point-of-Sale Solution

To calculate the total of the food items purchased by a user and to help restaurants make transactions, Grubhub provides a platform to help with the performance.

Requesting couriers

After confirming a customer’s order, the courier closer to the restaurant receives a notification from the restaurant.

Bill generation and reports

Grubhub’s restaurant dashboard generates bills for the orders. The order data is also stored. So this enables the restaurants to view the history of orders.

Customer support

Grubhub’s restaurant dashboard extends customer support services. It helps customers to make inquiries for orders or updates.

Grubhub’s Revenue Model

Online food delivery platforms like Grubhub make money mainly from three sources. Let us look into detail how Grubhub makes money:

Advertising and listing

Grubhub promotes some restaurants by charging them. Such restaurants get increased visibility than the rest. Restaurants also benefit from this as getting advertised by Grubhub attracts the audience.

Delivery charges

Grubhub charges the customer for each delivery as delivery charges. It is one of the sources of income for online food delivery systems like Grubhub.

Commission from restaurants

Another way by which Grubhub profits is by charging commissions from restaurants. Grubhub charges a certain amount from restaurants for each order made.

There’s no denying how much of a household name Grubhub has become since its initiation. The on-demand food delivery service has predominantly become a part of our lives, benefitting a large sector of people. So there will only be growth for other food delivery platforms trying to venture into the market.

How to start a business like GrubHub?

You can use our FoodStar or RebuEats product to get started. Our product helps build a business like Grubhub. So, for someone with aspirations to carve a niche in the on-demand food delivery service market, our seamlessly efficient product is your go-to!

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