grubhub-competitors

Grubhub Competitors

Grubhub is an online and mobile food ordering and delivery company that was founded in 2004 by Matt Maloney and Mike Evans.

In May 2022, Grubhub held 13% of the restaurant food delivery market compared to Uber Eats (24%), Postmates (3%), and DoorDash (59%).

Since the United States is the only market Grubhub operates in, we will take a look at a few of its North American counterparts below.

DoorDash

how-does-doordash-make-money
DoorDash is a platform business model that enables restaurants to set up at no cost delivery operations. At the same time, customers get their food at home and dashers (delivery people) earn some extra money. DoorDash makes money by markup prices through delivery fees, memberships, and advertising for restaurants on the marketplace.

DoorDash has a majority market share in the United States for restaurant deliveries, a position the company also maintains in convenience deliveries.

DoorDash’s Q1 2022 results were impressive, reporting all-time highs in monthly active users (MAUs), average order frequency, and marketplace gross order value (GOV).

Revenue was also substantial at $1.46 billion.

The success of the company’s restaurant marketplace has enabled it to expand into various other verticals such as ultrafast grocery, white-label logistics, and the delivery of beauty products, alcohol, flowers, and pet-related items.

Uber Eats

uber-eats-business-model
Uber Eats is a three-sided marketplace connecting a driver, a restaurant owner and a customer with Uber Eats platform at the center. The three-sided marketplace moves around three players: Restaurants pay commission on the orders to Uber Eats; Customers pay the small delivery charges, and at times, cancellation fee; Drivers earn through making reliable deliveries on time.

Uber Eats is the second-largest player in the United States with 24% of the restaurant delivery market.

The service is available in all 50 states but is particularly popular in cities such as Miami, Atlanta, Dallas, Washington D.C., Boston, Chicago, and New York.

Like DoorDash, Uber Eats has reinvested funds to establish a presence in related verticals with parent company Uber acquiring alcohol delivery service Drizly and online pharmacy Nimble.

Uber also acquired Postmates in 2020 for $2.65 billion in an all-stock deal. But more on that service in the next section.

Postmates

postmates-business-model
Postmates is a food delivery service built as a last-mile delivery service platform connecting locals with shops. Postmates makes money by collecting fees (commission, delivery, service, cart, and cancellation fees). It also makes money via its subscription service (called Unlimted – $9.99/month or $99.99 annually) giving free delivery on every order of more than $12.

Postmates is a food delivery service that was founded in 2011 by Sam Street, Sean Plaice, and Bastian Lehmann.

It was initially created to address the last-mile delivery problem with a fleet of contract drivers who transported anything from groceries to tech products.

Before its acquisition, Postmates operated in more than 3,500 cities across the USA and, as a result, was able to serve 70% of all households.

Waitr

Waitr is a food ordering and delivery platform available online and on mobile.

The platform was created as part of a project at McNeese State University in Louisiana by Chris Meaux.

With less than 1% of the total food delivery market, Waitr primarily competes with Grubhub in the southern United States where it has a strong presence.

In early 2022, the company announced it would be shifting its focus to non-restaurant deliveries such as cannabis at some point later in the year.

ChowNow

ChowNow’s business model is a little different from other Grubhub competitors since it allows restaurants to take online orders from a branded marketplace.

The company also offers support for restaurants that want to reach new customers via custom marketing, customer data insights, memberships, and website ordering.

Key takeaways:

  • Grubhub is an online and mobile food ordering and delivery company that was founded in 2004 by Matt Maloney and Mike Evans. The company accounted for 13% of all restaurant food deliveries in May 2022.
  • DoorDash and Uber are the main Grubhub competitors since both companies control around 86% of the American food delivery market.
  • Waitr is another competitor with a particularly strong presence in the southern United States. However, the company has announced plans to move into non-restaurant deliveries such as cannabis at some point in 2022.

Read Next: Grubhub Business Model.

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