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GrubHub Idea Proposal (GRUB)

GrubHub Idea Proposal (GRUB)
 

Will GrubHub fend off the challenge from UberEATS and Amazon?

Report Available:April 5, 2017

 

Blueshift’s initial research shows GRUB continuing its strong growth trajectory, but competition is on the rise, including from well-known consumer-facing companies Amazon and Uber that are expanding aggressively.

 

Observations

  1. GRUB’s Q4 profits missed expectations, though revenue grew 38% year to year. Active diners rose 21% (up from 19% growth in Q3), daily average orders climbed 21% (down from 26% growth in Q3), and gross food sales through the platform increased 27%.
  2. GRUB faces competition from recent big-name entrants UberEATS and Amazon’s restaurant delivery service, which is free to Prime members, which now totals 66 million, and just launched in Washington D.C. and Las Vegas. GRUB’s response is to improve the efficiency of its drive network, while also increasing its sales and marketing spending, moves that will put pressure on the company’s margins. UberEATS in the last two weeks has added delivery services to Richmond, Tampa Bay, Hartford, Milwaukee, and Tacoma. It also added a new tool that lets restaurants gain more insight into their sales, speed, and service with UberEATS. Also, Square just bought a company allowing customers to order ahead and pick up their food at the restaurant, adding more competition to the space.
  3. Blueshift’s Nov. 16, 2016, report said GRUB has a tall task ahead of it in fending off UberEATS and in maintaining its supremacy in the online food ordering and delivery world. UberEATS was gaining steam as it rolls out its service nationwide. Six of the seven restaurant sources using UberEATS said it is better than its competitors and is gaining ground on them, including GRUB.

 

What effect is UberEATS having on GrubHub? What effect is Amazon restaurant delivery having on GrubHub? How is share being distributed among the leading companies? What is GrubHub doing to fend off challenges from UberEATS and Amazon? Who has the best technology and analytics to offer restaurants? How influential is this to restaurants choosing a delivery service? What do restaurants value most from delivery service providers? Which company provides this best? To answer these and other questions, Blueshift will gather data and issue a market research report from independent sources in the following areas: Restaurants using GrubHub and competitors, Restaurants using only GrubHub, Restaurants using only competitors.

 

Companies: GrubHub (GRUB), Amazon (AMZN), Yelp (YELP)

 

Research Begins: March 20, 2017