Grubhub is introducing Amazon's "Just Walk Out" checkout technology to convenience stores on college campuses, as various delivery service providers vie for the attention of students in order to secure their loyalty over the long term.
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GLOGrubhub is introducing Amazon’s “Just Walk Out” checkout technology to convenience stores on college campuses, as various delivery service providers vie for the attention of students in order to secure their loyalty over the long term.
The company, based in Chicago, revealed on August 29th that its campus division is collaborating with Amazon to bring the computer vision-based checkout system to universities and colleges. Loyola University Maryland will be the first to offer this option.
Eric Ferguson, Chief Operations Officer of Grubhub, expressed in a statement that the partnership with Amazon’s Just Walk Out technology is part of their strategy to strengthen ties with campus partners by implementing cost-effective technology and encouraging student adoption. He stated that their goal is to enhance the dining experience through innovative and seamless technology.
Under this new checkout method, customers will scan a QR code using the Grubhub app when they enter on-campus stores. Students interested in using this technology will need to download the Grubhub app.
This collaboration is happening as various delivery service providers aim to capitalize on Generation Z’s strong interest in on-demand food delivery. According to a PYMNTS survey conducted in June, 40% of respondents reported using a delivery service to place an order at least once in the past six months. Among Generation Z respondents, this figure rises to 52%.
In a previous interview, Madeline Maguire, Senior Director of B2B Marketing at Grubhub, highlighted the significance of connecting with young consumers in order to expand their user base for the long term. Maguire stressed the importance of acquiring these customers early and providing them with a positive experience, thereby fostering lasting loyalty.
It’s worth noting that Grubhub faces competition from other delivery service providers also striving to win the loyalty of this valuable demographic. For instance, DoorDash recently partnered with education technology company Chegg to offer free DashPass Student memberships to college students subscribed to Chegg’s Study Pack program.
Minimizing the obstacles in the checkout process is a critical strategy for building loyalty across different age groups. A study featured in PYMNTS’ “Digital-First Banking Tracker® Series Report” revealed that 66% of consumers prefer self-service models over staffed checkout counters.
In terms of usage, Grubhub trails behind the top two delivery service providers in the United States across all age groups. Recent research from the same series indicates that only 35% of delivery service users made purchases through Grubhub in June. In contrast, 77% of customers used the category leader, DoorDash, while 49% opted for Uber Eats, the second-place contender.
Furthermore, the study indicates a decline in Grubhub usage since the previous year’s close, whereas DoorDash’s adoption among customers has continued to grow.
Source: PYMNTS
