What is GrubHub? GrubHub Revenue and Business Model.

GrubHub is an on demand platform of food delivery. They delivering meals from restaurants to consumers at their home. GrubHub Revenue and Business Model has not just make it easy for users to order food online from a different of food joints in their nearby location but has also helped restaurants serve a larger crowd.

GrubHub is one of those start-ups which has fulfil the ultimate goal of becoming an initial public offer(IPO).GrubHub Established by two developers in 2004, GrubHub takeover some well known companies like Seamless. We at Future works have compiled a success timeline of GrubHub below. But, before we move on to the timeline, here are some facts about GrubHub along with its salient features.

GrubHub Founders, Salient features & Facts:

Founders: Matt Maloney & Michael Evans.
Founded in: Year 2004
Headquarters: Chicago, IL
GrubHub IPO Date: 7 April, 2014.
Publicly Listed: At New York Stock Exchange (NYSE) as GRUB
• GrubHub has 5.6 million active diners in last 12 months.
• GrubHub processes an average of 240,700 orders on a daily basis.
• Present in more than 950 locations across USA.
• It has collaboration with more than 45,000 restaurants.
Source: http://get.grubhub.com/

GrubHub owns and manages four different brands in the same business. They are – GrubHub, Seamless, MenuPages and AllMenus.

GrubHub Funding Timeline

Value Propositions of GrubHub Revenue and Business Model

GrubHub offering great value proposition not just for consumers but also for eating house. Moreover, GrubHub provided some valuable offers to restaurants and customers.
For Customers:
• Help customers for save money and valuable time as they can order food online.
• Customers can track the delivery after giving an order
• 24*7 Customer service.
• Customers have an option to choose a food point from where they want to order.
For Restaurants
• GrubHub has its own delivery boys.
• GrubHub provides restaurants with extended consumer base.
• GrubHub allocate restaurants a software to manage their deliveries through GrubHub in an efficient manner.
Consumer Segments
The point is that every person loves tasty and quality food. And it feels even much better when this tasty food comes to you at your home. Hence the customer sections in GrubHub Revenue and Business Model can be determined as:
Users:
• People who loves to restaurants food but have no time to go out.
• People who want food at their home.
• Corporates who often order food from outside for their lunch.
• People who do not want to cooking for dinner.
Eating point:
• Restaurants who do not have delivery person to fulfil orders at doorsteps.
• Food joints who want to serve people at their location.
• Restaurants which want more consumers and online advertising & branding.

GrubHub Revenue and Business Model Canvas

In order to show you the complete GrubHub Revenue and Business Model, we planed to use Alex Osterwalder’s Business Model generation Canvas for GrubHub. Here is the exact canvas with information about business proposition, key, partners, key resources, channels, cost system, revenue streams.

GrubHub’s Revenue Generation Model:

Being food delivery company an on-demand, GrubHub has not own any restaurant, it is based on less ownership model. But, still it serves thousands of meal orders to consumers on a daily basis. So,you know how much money does GrubHub make and its normal yet effective revenue model. The 2 major sources of revenue for GrubHub are:
• Commission on each order
GrubHub makes it possible for consumers to order food through internet from their favourite eating point & also delivers at their home. As a organization, GrubHub charges a commission percentage out of each and every order delivered.
The amount of commission ranges from 6% to 16% but according to an article on qz.com, it was revealed that GrubHub charges an average commission of 13.5%.
Restaurant Advertising on GrubHub platform

Four step model about how GrubHub Work

• Browse: Users browse various eating point listed on GrubHub at one time. GrubHub also has online menus for every restaurant. The important thing is search and nearby restaurants have also been provided for consumers.
• Place Order: Users have the option to place their order online and do the required transaction.
• Restaurant compose and packs the order: GrubHub get the order from customers by their choose able restaurant and forwards it to respective restaurant with the help of technology. Simultaneous receiving the order, restaurant prepares the food and packs it for delivery.
• Delivered by GrubHub: A GrubHub delivery boy picks up the order from respective eating point and delivers it to the consumer.

How & Why GrubHub became famous?

GrubHub was founded in 2004 and launched an IPO(initial public offer) in year 2014. The affluence of GrubHub goes to its innovative business model and revenue creating policy.
• GrubHub marketing themselves as a restaurant menu aggregator and they began by listing restaurants on their platform. However, the main features which made people regular customers on GrubHub include:
• GrubHub went on to list almost every eating point in the city on its platform giving various options to users.
• GrubHub lists different discount coupons offers for different restaurants depending on their collaboration.
• The rating which given by users help others know the quality of the restaurant. GrubHub has a place where customers can rate a restaurant.
• GrubHub also tells the average price of food at each restaurant. which makes easy to the customers.
• Beside delivery, GrubHub also offered pick up option that is unique.
So, like this we discussed all aspects of GrubHub Revenue and Business Model.
All these attribute have made GrubHub loved by consumers and have accounted for its fame.

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