After pandemic-era growth has stalled, the services are looking for new ways to drive revenue.
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Grubhub might be down, but it’s not out. Last month, the company struck a deal with Amazon giving its Prime members a year’s worth of free deliveries with Grubhub+, the company’s subscription program. Members typically pay $10 per month in exchange for free delivery on orders over $12 from a select group of restaurants.
gives Chase credit cardholders a free yearlong DashPass subscription. Uber has given six-month Uber One subscriptions to Hulu and Disney+ subscribers. customers, restaurants have to sign up for the company’s “plus” or “premium” tiers of service. Restaurants on DoorDash have to pay a commission rate of at least 25 percent to get in front of its 10 million-plus members. Building a robust subscriber base lets delivery companies charge restaurants more money to reach the most loyal customers.
With its business model successfully defended, Grubhub can resume its work to claw back lost business. It’s too early to tell if Grubhub’s recent Amazon partnership might change its fortune, but linking up with America’s biggest retailer could offer the underdog more competitive advantages. Rival DoorDash has benefitted from fast expansion into other verticals like convenience and grocery, while Uber can cross-sell its riders, converting them to loyal delivery customers.
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