📱 App Enhancements
Grubhub announced a series of new features to improve its app experience on August 1, 2024. The latest update includes personalized offer carousels on the homepage. This content is based on historical click-through and conversion rates. Another major addition is a centralized wallet feature. This allows customers to track gift cards, Grubhub+ credits, and lines of credit all in one place. Grubhub also introduced a new $2.49 priority delivery feature. This aims to make orders more timely, enhancing overall customer satisfaction.
🍔 Checkout Recommendations
One of the most significant updates is the checkout recommendation feature. This feature may help drive incremental sales for Grubhub’s partner restaurants by acting as a form of upselling. “With our new ‘You might also like’ suggestions on the cart screen, users are shown recommended items while confirming their order details,” Grubhub explained. This could encourage users to add more items to their orders, benefiting both Grubhub and its restaurant partners.
📊 Market Competition
Grubhub’s updates come at a time when it is striving to regain market share. As of March 2024, Grubhub accounted for about 8% of third-party restaurant orders in the U.S. In contrast, Uber Eats held 23% and DoorDash dominated with 67%, according to Bloomberg Second Measure data. Competitors have also updated their apps recently. Uber Eats introduced Uber One for students in May and enhanced allergy disclosures. DoorDash added chat monitoring to detect harassment between customers and workers in March.
🤝 Amazon Partnership
Despite its low market share, Grubhub has been strengthening its relationship with Amazon. Prime subscribers can access Grubhub+ for free, a service that typically costs $120 annually. This partnership started in 2022 and aims to leverage the massive number of Prime customers. Other new features include live activity tracking for iOS users, allowing them to follow their order progress without opening the app. The Self-Service Order Not Received function lets users request re-delivery or a refund without speaking to an agent. These updates reflect Grubhub’s commitment to enhancing the customer experience.
How will Grubhub's new features affect your food delivery choices?
