Quick Growth of Grubhub in the US Online Food Delivery Market

The COVID-19 pandemic has severely exaggerated the overall economy of the US, one sector, which flourished was of online food delivery. In the US, this market has grew by over double during this COVID-19 pandemic, succeeding healthy historical growth rate of 8%.

Different food delivery apps like Grubhub significantly benefited from augmented home delivery demands due to social distancing standards.

This blog will provide you a short-term analysis of the quicker growth of Grubhub. To do this analysis, we have selected cities having maximum Grubhub users’ base (including New York, Chicago, and Boston).

We have also related a few of the Grubhub’s insights with its largest competitor, DoorDash.

This chart indicates that New York is having maximum number of users with accounting for almost 37% of the total sales. Opposing to that, Miami is having the lowest portion of sales with 7%. We can see that states having higher populations get reasonably higher sales.

Major Insights

New York is having the maximum Grubhub listed restaurants (11,655), trailed by Chicago (6,150) as well as Boston (1,997).

57 to 60% of the consumers are happy with the online order experience on Grubhub.

Grubhub Analysis: Features Defining the Success of Different Food Delivery Apps

Do you know that Grubhub has the maximum share of sales (37%) amongst the important online food delivery services within New York City? Therefore, what makes the online food delivery businesses including Grubhub a great success? Let’s learn more.

In this blog, we would be discussing a few important success factors. These include:

Average Delivery Time

Studies show that on-time delivery has become an important factor in making sure repeated business for all the food delivery applications. No customer wants delays, particularly hungry customers. Therefore, average delivery time is amongst the most significant factors of rating food delivery applications.

Check the expected food delivery time for Grubhub for cities like New York, Chicago, as well as Boston below:

On an average, Chicago residents need to wait for about 41 minutes for getting their orders delivered with Grubhub. See the chart given below:

In the move of avoiding customer dissatisfaction as well as improve services, Grubhub has launched a new attribute named ‘Grubhub Guarantee’. It promises consumers with on-time food delivery as well as lowest prices related to competitors.

If not fulfilled, Grubhub makes that right using Grubhub Perks to provide free food. The users just need to submit claims on an app, accordingly, the qualified orders get Guarantee perks, which can be utilized on following orders.

Prices and Discounts

The online food delivery market in the United States has reached the value of $21.2 Billion during 2020. Amongst the most significant factors helpful to the success of these apps needs to do with the food prices. Without doubt, the COVID-19 pandemic has set a ball rolling for the market’s quick growth. Though, discounts as well as scope of savings are the reasons people continuously choosing to order food online.

This app is known for the affordable menu alternatives as well as discount offers. Similarly, Grubhub promo codes allow consumers in saving on each order. Furthermore, Grubhub+ program provides members with attractive benefits including exclusive deals at chosen restaurants, unlimited free deliveries on orders more than $12, etc.

The given chart shows average food items pricing on Grubhub:

Cuisine Flexibility

Many hundreds of restaurants get added to a ‘Restaurant Inventory’ on Grubhub every month. Therefore, it helps the app to provide consumers with an extensive range of cuisines. This chart given here shows a quicker sneak peek about total cuisines Grubhub as well as Doordash offer in various cities.

Moreover the adaptability of alternatives and high-quality also invites consumers to do more orders. Therefore, Grubhub makes sure that the users have access to all popular and high-rated cuisines easily. The chart here shows a few of the most well-known cuisines on Grubhub as well as Doordash.

Customer Service Experience

A latest survey indicates that issues having deliveries disappointed about 80% of the consumers. One way of offering an amazing customer experience is by making sure the quality of serious interactions. The survey has further exposed that potential problems like unpredictable delivery time updates, sudden surge in wait times, and more could be a warning to success of all these apps.

Grubhub has enforced numerous measures for improving its in-app consumer experience. Consequently, the company has advised restaurants to provide maximum transparency in the status of all orders. The restaurant podium provides timely updates for food packaging, pickup, as well as delivery for users.

As opposite to customary call of minimum two minutes duration, the users can place the order on app inside 45 seconds.

Reviews & Ratings

Studies indicate that more than 50% of customers having age group of 18 to 34-years consider online reviews while taking any dining decisions. Reviews, ratings, as well as overall consumer satisfaction play an important role in the reputation of different food delivery apps like Grubhub.

Grubhub Popularity

Particularly, users that read customer reviews on Grubhub are 1.5 times more expected to order than people who didn’t. No surprise the company gives more emphasis on achieving great ratings as well as reviews from the customer base.

Grubhub has taken various steps to overtake its competitors as well as improve user experiences. Mainly, it has enforced a harsh protocol, which needs to get followed by the listed restaurants as well as their delivery partners. All the guidelines make sure users get the right orders in time as well as with no quality compromise. This has meaningfully contributed in providing positive results.

Let’s see the chart given below:

Around 50% of Grubhub’s consumers have rated the accessible menu alternatives 4 out of 5 (with these 3 cities). See the chart given below:

A greater look at reviews got the sentiments behind them. We have shown the sentiment analysis in the given chart.

Analyze closely and you will see that around 57-60% of the consumers are happy with the orders. Furthermore, around 8% of customers had unbiased reviews in three cities. Compared to that, we have made an exciting observation that the majority of consumers are not leaving ratings and reviews as well ason DoorDash.

You can see in the diagram here that how around 76% of users avoid posting any reviews on Doordash. Lacking reviews as well as consumer ratings can encourage distrust amongst users, pushing them to go towards other food delivery apps.

With the booming food delivery market, companies like Doordash and Grubhub should not repose on their successes alone. You must have understood how concentrating on the above-mentioned factors may prove useful in supporting loyalty and customer satisfaction.

Ordering-in: The New Normal

Today’s world has observed dramatic changes about ‘how people are eating’. Around two decades back, the delivery of restaurant-quality meal was mainly limited to different food items like pizza as well as easy take outs. These days, online food delivery has become a worldwide market worth over $150 billion, getting over three times ever since 2017.

So, if you want to enter in the online food delivery market space, today is the best chance. Create a healthy restaurant database as well as maintainable pickups and delivery plan using strategic locations datasets. You can easily get different restaurant chain locations datasets from Foodspark.

For more information, contact Foodspark or ask for a free quote!