The Ultimate Guide Of How Grubhub Makes Money: Understanding The Business Model Of Grubhub

Willa Anderson
9 min readApr 7, 2021


The on-demand food delivery industry has been burgeoning in recent times. The times we are living in now require more things to be done online. And who wouldn’t love to get things delivered to your doorstep with just a few taps on your mobile phone? Especially when it comes to food. To satisfy your hunger, on-demand food delivery services have been providing stellar solutions to the customers. And today, we are going to talk about one such food delivery service that is Grubhub.

What is Grubhub?

Grubhub is an online food delivery platform; it interfaces neighborhood restaurants with restaurants assisting them with getting their number one food get delivered directly at their place. The Chicago-based Grubhub was established in 2004, and with its most broad company of eatery accomplices, it has become a food delivery and a delivery monster. Grubhub has collaborated with in excess of 300,000 restaurants in more than 4,000 U.S. cities. Grubhub has changed the food business; the on-demand overhauling platform conveys food varieties from the close by restaurants according to clients’ interests. Grubhub’s business model has been outlined to support clients through current innovation arrangements assisting clients with delivering food online from a scope of on-demand specialist companies. The company takes a major lead in the online food delivery market by being a great and moment answer for the restaurants to serve an immense client base.

The Concept Of Grubhub — How Does Grubhub Work?

The concept of Grubhub is quite simple and effective. Basically, it caters to your demand in two simple ways.

-> Order: Order various dishes of various cooking styles from various restaurants in your region by composing in your location. Grubhub has cooperated with a devoted armada that will convey it to you.

-> Pickup: Order various dishes of various cooking styles from diners who will plan it and pack it for you to arrive and get it.

How Does Grubhub Work For Customers?

In this part, we will perceive how accomplishes Grubhub work for the shopper through a step-wise model. The shoppers are the essential clients of the food delivery service. They are an essential part of the business. Giving a superb client experience to the shoppers is vital for any business to flourish on the lookout.

How about we examine the step-wise model of how Grubhub functions for their customers. The purchasers need to arrange their food in the accompanying advances:

1.) Browse

There is an assortment of Restaurants accessible on the online entry. The customers need to peruse the restaurants and their menus dependent on the food they’d like on a specific day. Whenever they’ve settled on the food they can go through the restaurants giving something very similar and choose what they need to arrange.

2.) Order

When the client has perused the accessible choices he goes to a choice. When this decision of supper is made, the client needs to put in a demand. He needs to choose the things he needs to demand and add them to the truck. The client additionally needs to set a delivery address to the demand. After the truck is prepared the application will ask for an affirmation, when the client supports the subsequent platform starts.

3.) Payment Options

After the affirmation from the client, the application guides them to the checkout page. Here the client needs to make the payment for his demand. There are a few choices accessible to the client to make a payment. he/she can pay through charge/Mastercards, PayPal or they can demand a Cash on Delivery for their demand

4.) Wait

Payment is the last advance for demanding food from Grubhub. When the payment is done, the arranged set and the restaurant’s job become an integral factor. Presently all the shopper needs to do is trust that the dispatch will present to them the feast at their doorstep.

This is the means by which Grubhub works for their customers. It makes it too straightforward for the clients to arrange suppers whenever the day. For its effortlessness and assortment, it has gotten the go-to choice for the ‘food cravings’ of the USA.

How does Grubhub work for the Restaurants?

restaurants assume a significant part in the fulfillment of a whole demand cycle. The food is exhibited and arranged by the Restaurants. These are significant segments of the business. Allow us to examine how Grubhub functions for their accomplice restaurants:

  1. Bing! There’s a demand!

When the customer finishes a payment the eatery is advised on its dashboard. The restaurant needs to then check the accessibility of the demand required.

2.) Confirm Order

When the accessibility is affirmed the eatery needs to then affirm the demand on the dashboard. This will send the customer an update and will advise the closest messenger about the equivalent.

3.) Prepare and Pack

After the affirmation is done, the eatery needs to then begin setting up the demand. The supper ought to be prepared and pressed when the dispatch shows up. This is the primary piece of the restaurant’s work.

4.) Handle it over

When the dispatch shows up at the eatery they need to just hand the package over to the messenger. The eatery needs to ensure that the pressing is finished by the food being allocated. It ought to be helpful to ship and ought not to make a wreck.

Here the restaurant’s part completes and the messenger becomes an integral factor.

How does Grubhub work for Delivery Person?

Being a on-demand food delivery application, delivery is a fundamental piece of the business. Grubhub has an organization of messengers that get orders from the Restaurants and convey them to the purchasers.

We should see how accomplishes Grubhub work for messengers

  1. Order

When a restaurant affirms a demand, the messenger positioned closest to the area is informed about the demand. The messenger needs to acknowledge the demand in the event that it is workable for him to reach on schedule.

2. Pick Up

Subsequent to tolerating the delivery demand, the messenger needs to arrive at the eatery straightaway. When he arrives at he needs to get the demand and update something very similar in this application. This assists the client with tracking their orders while in transit.

3. Delivery and Tips

After the pickup, the messenger needs to arrive at the location allocated to the demand. The dispatches can contact the buyer if there should arise an occurrence of deferrals. They can likewise reach them for bearings. When they arrive at the delivery is to be done and the tips gathered.

This is the means by which one complete pattern of demand happens on Grubhub. With this, we saw how Grubhub works for the different parts of its business.

Grubhub Pick Up

Grubhub likewise gives the Grubhub service. It makes suppers truly available for the clients. The client can arrange his dinner through Grubhub and they can get it when it is prepared.

When the client arranges a supper online, the eatery is told of the demand. Being a pickup demand there are no dispatches associated with the odder cycle. The restaurant maintains the control prepared for the client to get it.

This makes it easy to move your demand and saves time. It diminishes the client’s line time and assists restaurants with serving better. Grubhub similarly gives massive openness to the restaurants related to the business.

Grubhub Funding

The on-demand industry is becoming drastically because of innovative headway. The diligent fascination shows that the area is seeing huge development as of late; the food delivery and delivery market are anticipated to reach $16.61 billion by 2023. Investigate the blog to realize how does food delivery and delivery business monster Grubhub works, have total knowledge into its business model to see how it brings in cash, and productively oblige end-client needs.

Without a doubt, the food delivery market has changed the method of living. It has influenced our shopping propensities, method of working together, and significantly more. The online food delivery market income added up to around the U.S. $95,413m in 2019. The market volume of the online food market section was $74,451m in 2019 alone. Furthermore, with regards to online delivery, at that point, an application like Grubhub comes into the image. The on-demand delivery platform holds a 32.7% piece of the pie in the food delivery industry, and it is thriving quickly as time passes.


Grubhub Business Model

The Grubhub business model serves two divisions:

  • Restaurants
  • Customers

Grubhub’s online delivery platform business would be a gainful thought since its business model has been affirmed to be profoundly effective boundlessly far. Grubhub produces a remarkable on-demand delivery that has been the solid factor for its prosperity. Additionally, that application has a selective and inventive component where any eatery or merchant application advancement organization remembers for its top applications platform.

Online food delivery app Grubhub runs on a business model that goes in an accompanying manner and coordinated as most required features:

Step By Step Instructions to Create an Online Food Ordering System

-> Search

Grubhub offers clients to look by the posting of restaurants and select their food from their #1 cooking styles. Via looking through the model, clients can look for any exceptional arrangements or offers by analyzing through the multi-eatery local area on the platform. The looking-through outcome can be improved by picking the specific area for submitting the order.

-> Submit An Order

This component is generally significant for each online delivery business where the clients need to settle on their order with the finishing choice of the online exchange through making an online payment, likewise, there can be a spot for Cash on delivery.

-> Cycle

When the order was gotten, Grubhub began to divert it to the specific restaurant. The restaurant, thus, gets ready and packs the order for delivery. That cycle finishes when the delivery specialist refreshes the restaurant about the current delivery.

-> Delivery

Grubhub delivery association plays out the last and significant advance by picking the order from the separate restaurant and conveying it to the client. It assists with keeping refreshed with the delivery specialist, and the current delivery, additionally, the restaurant can track the delivery.

Grubhub Business Model Canvas

Grubhub business model canvas represents how the Grubhub business model actually encapsulates the process of revenue generation and working mechanism of the business.

Grubhub’s Market Presence

It is significant for a business to hold its clients as well as to build its scopes also. The primary objective for any business is to sell its products as well as to reinforce its relations with its clients. Grubhub has come out as a goliath major part of this industry on account of its sheer assurance and difficult work.

Revenue Model Of Grubhub

Being an on-demand food delivery application development company, Grubhub has not possessed any eatery as it depends on a more restricted proprietorship model. Yet, it helps thousands of food arranges that clients day by day. There are some significant wellsprings of income for Grubhub which are:

Commission On Order

Building up a food application like Grubhub makes it workable for clients to make a food demand through the web from their number one eatery or food court and additionally conveys it at their home. As a company, Grubhub charges a commission rate as per the level of each demand delivered.

Base Commission Rate for Restaurant 20%: Restaurants can pick an all the more expensive or lower commission rate per demand as their prerequisite. Furthermore, More upgraded commission restaurants get more openness.

Delivery Commission 10%: Grubhub takes 10% to add up to the restaurant’s to utilize the delivery service it gives.

Handling Fees: 3.05% + $0.30


Grubhub has a membership model for its clients, where they can acquire from its distinctive membership program. For $9.99/month, it offers a limitless free delivery on the base demand of $12. Additionally, it gives different advantages to its supporters.

Gift Voucher

The Grubhub company produces income through promoting Gift cards for its clients. By buying it, clients can offer a gift voucher to their companions or family or company on some extraordinary event.


Well, this ultimate guide of the Grubhub business model and how it actually makes money will surely help you understand things in detail. And if you’re looking to start your own on-demand food delivery app like Grubhub then this guide will definitely get in handy for your business.



Willa Anderson

As I am working with one of the top mobile app development companies, Moon Technolabs Pvt. Ltd., I manage stuff like mobile app brainstorming and promo activity