All you need to know about GrubHub Business Model

Entrepreneurs are exploiting the technology with the on-demand services to create great businesses. This is giving customers better service as compared to traditional industries and disrupting them.

They want to assure that the improved communication platforms are provided so that the customers can easily engage with the services providers. Here we have the GrubHub business model case study to help you understand how a company brought innovation to the restaurant business.

They want to assure that the improved communication platforms are provided so that the customers can easily engage with the services providers. Here we have the GrubHub business model case study to help you understand how a company brought innovation to the restaurant business.

What is GrubHub

GrubHub is providing a platform to the food industry specialists to allow them to use the on demand services. They are making the food industry transform and help them deliver the food items to the willing customers at their doorstep.

The GrubHub business model analysis shows that it has been designed to allow the customers to order the food online from a variety of restaurants available and get the food items delivered at their doorstep. They are providing a streamlined technological solution to the restaurants and their customers.

In online food ordering market, GrubHub has taken a giant lead, as it is an instant solution for the larger masses of restaurant servers.

Facts and Figures

  1. Founded by Michael Evans & Matt Maloney

  2. 2004 – year of foundation

  3. Headquarter is in Chicago, IL

  4. IPO date is 7th April 2014

  5. Publically listed as GRUB by New York Stock Exchange

  6. In May 2013 GrubHub announced collaboration with seamless

  7. In last one year, GrubHub has served 5.6 million active customers

  8. On daily basis, it deals with 267,800 customers with the well-orchestrated system

  9. Its market presence is showcased in over 1000 US cities

  10. 44000 food joints are active business partner with GrubHub

Value Propositions For Customers

  1. It provides easy and quick way for customers to order food online

  2. Clients can order food from any restaurant they like

  3. Saves time and money

  4. Customers will get the opportunity to track the status of their order

  5. 24/7 customer services

Value Proposition for Restaurants

  1. The restaurants can supervise the deliveries that were channeled through the GrubHub by an application

  2. Restaurants are engaged with a large customer base

  3. GrubHub has its own delivery personnel.

Customer Segments

  1. Restaurants

  2. Users

  3. Good food gives us a good life. Every customer likes to explore different types of food items using the platform. It would be perfect when good food is delivered at your doorstep. GrubHub will nourish the expectations of two different customer segments by taking turns.


  1. GrubHub will be beneficial for the people who are not interested in cooking

  2. When you are hosting a team lunch in the organization it would be better to order food from outside

  3. It is perfect for the people that like to get food delivered at their doorstep

  4. It is the perfect station for the people who love to eat outside but have a tough schedule


  1. It is the ideal platform for the restaurants to reach more customers and increase their brand awareness

  2. The food joints can target the masses in their locality

  3. Restaurants who cannot afford to have the delivery guys due to tight budget can trust GrubHub for all the deliveries.

How GrubHub generates revenue

GrubHub business model case study shows that it takes less ownership framework. It is working on a simple approach to serving all the customers by allowing them to order the food products from thousands of restaurants by not having one of their own restaurants.

GrubHub business model case study is working to serve the on-demand food industries and it is establishing the innovative revenue system. GrubHub generates its revenue by getting the commission on every order that is delivered and they are providing restaurants an advertisement platform.


GrubHub provides a platform to order food and get it delivered to the customer. This is what the customers think GrubHub is. The common question everyone has is how does the team make money. When the customers place their order using GrubHub from their favorite restaurant and the order is delivered without any inconvenience then GrubHub takes a percentile. Once the order is delivered there is a specific charge that GrubHub will take. The percentage of the commission can range from 5% to 15% and the standard pricing is 13.5% per order.

Advertisement platform for restaurants

GrubHub provides a perfect platform to the restaurants to show their market presence and reach a large customer base. For the restaurants to make it at the top of the customer’s search, they will have to pay GrubHub. In this way, GrubHub has designed a skyrocketing revenue system by introducing GrubHub business model innovation. This is how GrubHub has become a big name in the industry.

GrubHub business model explained in 4 step smart system

GrubHub works on the 4 step smart system in the following way.


Customers or users can search through the list of restaurants and select their favorite food items. They can also hunt for the deals and special offers given by different restaurants that are listed on the community of GrubHub. The search results can be refined by selecting the location and the type of food they would like to have.

2-Place order

Once the customers have selected the type of food they would like to order from the restaurant of their choice, they can make the transaction online or do as they are convenient.


Once the order has been accepted by GrubHub it would be redirected to the particular restaurant through the application. The restaurant starts to prepare and pack the order for delivery once it has received the order.


The delivery person of GrubHub will pick the order from the particular restaurant and they will deliver it to the address mentioned by the customer.

How GrubHub became successful

From the very beginning when GrubHub was introduced in 2004 until it became the master of the on-demand economy, GrubHub has made its own way towards success. It has transformed the business prototype by using the revenue generated theory.

The GrubHub started its business as a marketing platform for the customers. It made the list of the restaurants available and provided them a chance to make their business stand out. The motive of featuring the restaurant by GrubHub was different; it wanted the people to return to the restaurants again by using their list.

The unique options available at GrubHub makes it help the restaurants and customers in different ways and this is how it has been able to grab the attention of different restaurants and thousands of customers.

GrubHub features

Some of the amazing features that you will come across while using GrubHub are.

1-Selecting a restaurant

On the GrubHub list, customers will get a chance to select from a wide range of restaurants. User can select