Will GrubHub win the online food ordering battle?
Report Available:November 16, 2016
Blueshift’s initial research shows GRUB as a leader in online food ordering and delivery, posting strong recent results after a down year. But GRUB faces challenges from numerous competitors in an increasingly crowded market where customer loyalty can be fleeting.
- GRUB is an online platform for restaurant pick-up and delivery services. It reported Q2 results that beat expectations as earnings were up 23 cents per share, revenue grew 37% compared to a year ago, and the company raised guidance for its fiscal year 2016. GRUB had 5 million more orders in the quarter than a year ago, a 23% increase, while active diners grew 24% year to year. GRUB’s strong results were driven by improved technology backing the mobile app, more advertising, and better delivery personnel. GRUB’s Q2 performance represents quite a turnaround from the last five quarters where order growth declined as competition from the likes of UberEATS and Postmates mounted.
- GRUB is customizing its platform for its diners, using its data to make recommendations for choice of restaurant, meal, and time of order. It is providing restaurant ratings to its customers based on food quality, delivery time estimation, and order accuracy in an attempt to set itself apart from competitors and be the most commonly chosen option for takeout diners and restaurants, which it views as essential partners.
- UberEATS is powered by the Uber app, the average order takes 35 minutes from start to finish and the delivery fee is a flat $4.99. Postmates was named this fall as one of the 10 apps every college student should download. In a test of seven different delivery services with the same order placed at the same time, UberEATS arrived first and presented the easiest process, including ordering and tracking delivery. GRUB’s order arrived second to last, from a delivery person working for an independent courier service who also brought the order from YELP’s Eat24. Postmates arrived last, nearly an hour after the order was placed, and the food came with the worst presentation. GRUB also rated low in this area. Postmates was ranked 7th, GRUB placed 4th, UberEATS was 2nd with DoorDash the winner.
- Blueshift’s Dec. 18, 2014 report said GRUB was a positive boost for restaurants, providing a valuable service that sources expected to continue using for their delivery needs. Sources were very satisfied with their service from GRUB and that their delivery sales increased as a result of working with GRUB. The majority of sources also said GRUB got better results than its competitors.
What order volume are you seeing through GRUB? How does GRUB compare to competitors? Which service brings you the most repeat customers? Which provides the best data and business insights? To answer these and other questions on GRUB and the online food ordering market, Blueshift will gather data and issue a market research report from independent sources in the following areas: Restaurants partnering with GRUB only, Restaurants partnering with GRUB and competitors, Restaurants partnering with only competitors, and Industry specialists.
Companies: GrubHub (GRUB), Yelp (YELP), Amazon (AMZN), Square (SQ)
Research Begins: Oct. 31, 2016