Why GrubHub is Still America's Most Popular Food Delivery Service
It's dominating the start-up competition.
In the sea of food delivery options available to hungry Americans, there is still just one dominant force: GrubHub.
The original food delivery giant (which merged with Seamless in 2013), brought food to 8.75 million people in the first quarter of 2017 alone. They averaged 324,000 customers per day. That’s a total of $898 million worth of rushed breakfasts, office lunches, and too-lazy-to-cook dinners, in just the first three months of year.
Things were not looking so good last year: The new surge of straight-to-your-door delivery services like Postmates threw the app's future into uncertain territory. GrubHub’s stock fell 61% from April 2015 to January 2016, in the wake of the start-up delivery service revolution, but clearly consumers came to their senses and returned to the original. In some sense it's a classic case of "if it ain't broke, don't fix it."
Meanwhile, other companies are downsizing in order to compete with GrubHub. UberRush will soon stop delivering food so that the company can pour those resources into UberEATS. Others, like Postmates, are just getting called out for shady practices including being accused of overcharging customer with additional fees. The simple Grubhub-Seamless formula is what people want: delivered food with no fuss.
Part of the appeal – and success – of a service like GrubHub is that they exist in small towns, too, unlike Postmates and UberEATS, which focus on bigger cities like Los Angeles and New York City.
Food delivery is now such a staple of American life, that some people have even confessed that they are addicted to services like GrubHub. We don’t recommend taking the habit that far, but clearly it’s become completely socially acceptable to indulge your lazy moments and impulses to never leave the house again with a quick meal via bike messenger and a slough of binge-worthy series in your Netflix queue. Since food will never stop being the most in demand delivery product on the planet, it’s pretty much guaranteed that GrubHub will continue to cash in.