The Chicago-based food delivery platform announced Thursday (Sep. 7) the launch of a new feature for restaurants, dubbed “On-Demand Delivery,” enabling eateries that leverage their own driver networks for deliveries to request additional courier labor from Grubhub as needed.
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GLOGrubhub, in a bid to stand out in the competitive aggregator market, has introduced a more flexible feature for restaurants. This new offering, named “On-Demand Delivery,” allows eateries using their own driver networks to request additional courier assistance from Grubhub as the need arises. The feature is currently being tested in select locations, including Los Angeles, Washington D.C., and Chicago, with a $5 delivery fee per order for participating restaurants.
According to Liz Bosone, Grubhub’s vice president of restaurant success, “Whether a restaurant could use extra support to keep up with demand during peak hours or cover for a driver who called in sick, we want to give restaurants even more help to run their business and deliver a great experience to customers.” She also noted that feedback from restaurant partners has been positive, as they appreciate the convenience and the ability to access alternative fulfillment options without the need to hire additional staff.
This move comes as aggregator platforms vie to offer restaurants a range of comprehensive and flexible options to further embed themselves within various facets of the restaurant industry. They seek to solidify loyalty among both merchants and consumers and make their offerings indispensable.
While current economic pressures have led some restaurant customers to opt for more budget-friendly channels, there have been times when restaurants faced higher delivery demand than they could handle. By providing more adaptable driver solutions, aggregators can meet this crucial merchant need while allowing restaurants to maintain control over their workforce.
According to PYMNTS Intelligence from the Connected Dining series, Grubhub trails behind competitors in terms of consumer usage. In June, 77% of aggregator users reported being DoorDash customers, up from 71% the previous year. In contrast, 49% reported ordering from Uber Eats in June, down from 54% the previous year, and 35% said the same of Grubhub, down from 38%.
In its recent earnings report, Grubhub’s parent company, multinational food delivery firm Just Eat Takeaway, noted a 15% year-over-year decline in orders for its North American segment, which includes Grubhub in the United States and SkipTheDishes in Canada. Orders dropped from 171 million to 145 million in the first half of 2023.
Source: PYMNTS
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