Going out for family dinners and social get together is always fun, but after a long tiring day going out isn’t a good idea. Instant food delivery apps are actually monetizing on the small pleasures of life a lot. In the era of Netflix and Chill, going out seems a little difficult. Better get your food delivered at home and enjoy munching with your favorite show on. The Grubhub business model works basically on this. Before we understand how does Grubhub work and how much it costs, let’s have a glimpse at the history of Grubhub.
Grubhub began as a small America online and food delivery mobile app platform that intended to let people connect with their favourite restaurants without going there physically. The idea was conceived as a result of hunger pangs of one of the founders Mike Evans. Grubhub was founded by Mark Evans, Roman Gaskill, and Matt Maloney in Chicago in 2004. The basic code for Grubhub business model was structured the same night where Mike struggled with his hunger pangs and ever since there is no looking back.
The food delivery giant has a lot to offer to the young entrepreneurs who wish to enter the market with a similar mindset. If you are looking forward to have your own food delivery startup, then you would surely like to know what is the Grubhub business model.
When talking about the Grubhub business model canvas it would look something like this.
This business model is quite simple to understand and follow. Before we move further, let’s explore all the elements that determine how does Grubhub works.
For any business, customers play the most significant part. Food ordering and food delivery system is developed in a way that it could be navigated and used easily. With some interesting work on the aesthetics the app is designed to provide maximum information to the user in a glimpse.
The major aspects considered when working on Grubhub marketing strategy are:
There are a lot of features that worked upon to make sure that your users do not abandon your app without any action. The mobile app developers around the world understand how important it is to deliver feature-ladened app that get popularity in no time.
Working for the customers is one thing. Further the developers need to make sure the features on the restaurants’ end are interesting too. If there is any delay from the eateries end, still the app would see a decline. It is important for your Grubhub like app you understand how Grubhub works for restaurants.
Over the year, Grubhub has helped different restaurants expand and grow their popularity with the minimal joining charges.
The most important part of developing an app like Grubhub is working on the driver’s panel. The delivery personnel’s panel needs to be very efficient to make sure the food reaches the customers on the right time. Here’s how Grubhub works for drivers and what elements it considers.
Drivers play an important role in making your food ordering and delivery app important.
These elements come together to help you build a highly rewarding strong business that can earn you great revenue. You can always reach out to the android app developers to ask them to develop Grubhub like app.
This is one aspect of developing the mobile application; the other important aspect to cover here is what makes it a profitable business. Well, here’s the Grubhub revenue model that would make it easier for you to monetize your business idea.
The Grubhub revenue model is quite interesting and simple. The cash flow takes place from various sources. Thus, you can build your business well with the help of this revenue generating strategy.
One way of getting revenue for the business is the delivery charges. A part of the delivery charge fee goes to the rider and the other part goes to the business. Although the amount is minimal, but with the wide customer base the amount becomes quite impressive. The money here simply adds to the revenue of the business.
Restaurants have to pay a little for partnering with your business. You can ask for annual, half yearly or quarterly payments from the businesses. They would have to pay a little for the promotion and the business that your business would bring to theirs. If you think earning a heavy amount isn’t possible here, then remember more than the size it is the consistency that matters the most.
You can ask any new restaurant or eatery to promote themselves over the app for better profits and higher reach. With these advertisements and promotions you can earn a better profit. This would make it easier for you to earn some amount that goes directly to the organization’s account. Fun!
Let new eateries and dine out zones in the city be your clients and earn great money making them popular.
Subscriptions are the best way to monetize your business. Your customers can enjoy Grub+ facilities with a minimal payment of $10 per month. Get free food delivered if billed above $12 or get 10% discount on all your orders. Sounds like an easy idea to let others save and earn for you? Well, if done the right way you surely can make the most of your business strategy.
These are a few simple ways that do not add the monetary pressure on any one element. This Grubhub revenue model is quite interesting and can help you be at the top of your business if followed smartly.
Now that we have moved further the next important thing to understand is how Grubhub works. When talking about the working strategy of the app, understanding each element of the app is well taken care of.
When working for the restaurants there is one major thing that you need to consider. The process of placing an order is quite simple, let’s further explain the working of Grubhub user’s panel.
Now that your payment is processed, all you need to do is sit back and rest. Wait for your order to arrive. You can also track your order on the app and be rest assured when your food is delivered to you quickest.
The food would be delivered to your customer by the rider. When working on an app like Grubhub you need to make sure the delivery team that you have built is strong and large. Here’s how the delivery team at Grubhub works.
The riders are the most important part of the food delivery service as if they delay the services from their end the process would ruin up.
The user and the rider would manage their working only when the restaurant does it part in time. Here’s how restaurants work in such businesses.
When talking about the restaurants it is important that they are quick to respond and hand over the orders to the delivery personal quick.
The restaurants are expected to complete their work really quick to ensure that the food reaches the customer real quick.
The Grubhub business model largely stands on the three pillars and they are the major key-players in each case. It is important that none of these fail in their function to make sure the business runs well and gets you the best ROI in no time.
As we have talked about the Grubhub business model, Grubhub revenue model, and how an app like grubhub works the last point that is left for discussion is, what are the significant features of the app that would make it popular among the three dominant pillars of the app.
There would be times when your customer wants to order their favorite food from their favorite restaurant. Make sure the menu card has the list of all items so that the user is not confused and earns you the maximum profit that she may buy for herself.
When you ask your food delivery app developers to make an app like Grubhub, ask them to make the order process as easy as it could be. Do not include a lot of pages, and include various payment gateway to make the process clean and easy.
It is important that your customers can add some of the elements to the favorites depending on how frequently they order their food. This would make it easy for them to reorder from their favorite joints and earn great profits.
With GPS and navigation system it becomes easier for the customer, restaurant and the driver to track their respective destinations. It would show how long will the driver take to deliver the food and you can even track where he is.
Let your customers enjoy the discounts and the rewards for better prices and build a strong customer base. Sounds like an idea? Well, along with these you can use a few more customer engagement techniques to be in the favorite lists of your customers.
Let your app have the in app characteristic that makes it easier to respond for better results. Connect with the restaurant or the driver as and when required to share your needs or share customer reviews.
This is an interesting feature that you must include in your app. Let your users schedule their food delivery time when placing the order. This would make it easier for them to miss the last minute rush to placing the order and avoid tech glitches if any.
Let your customers pick their orders on their own. When you work on an app like Grubhub, let your customers decide if they want the order to be delivered home or would they like to pick it up from the restaurant. This adds ease to your customers life and saves the delivery charges in many cases.
Many food delivery apps these days let you book a table for your dinner time. With a rise in the need for table booking applications, it has become quite popular for apps like Grubhub, Zomato, Doordash to offer an alternative to book tables as and when they want to.
These are a few features that make it quite interesting for your customers to enjoy their lives easily and make your app popular.
Building an app like Grubhub is quite an important decision to make. When you are sure you want to continue with something like this, this article would be of great help. We share here Grubhub revenue model, Grubhub business model and features that you can include in your app.