📈 Grubhub's Market Share
Grubhub, a Chicago-based food delivery platform, holds only 8% of the market. Despite this, it has secured significant contracts with major companies like Amazon and Starbucks. These partnerships highlight Grubhub's strategic growth and ability to attract big clients despite its smaller market share.
📋 Why Grubhub Stands Out
Greg Buzek from IHL Group explains that smaller companies like Grubhub succeed by being flexible. "Smaller players are often more flexible on what they do or not do as well for a client," he said. Grubhub offers varied services tailored to each client’s needs, which has made it an attractive partner for retailers looking to expand their reach.
🤝 New Partnerships
In May, Amazon expanded its partnership with Grubhub to offer more food delivery options to Prime members. Similarly, Grubhub secured a deal with Starbucks to handle deliveries for restaurant orders. Additionally, Grubhub partnered with Albertsons to provide grocery delivery, showcasing its diverse service offerings and adaptability to different market needs.
🏆 Competing with Big Players
Competitors like Uber Eats and DoorDash are also expanding their services. Uber Eats partnered with Instacart to deliver from restaurants, and DoorDash started delivering from Lowe’s. However, Buzek noted that retailers prefer working with delivery companies due to affordability and value, stating, "Retailers realize that ship from store and local delivery is often much more cost-effective and profitable by partnering." This gives companies like Grubhub an edge in securing valuable contracts.
Why do you think smaller delivery companies are more flexible?
