Grubhub has formed a partnership with Choice Hotels' Choice Privileges loyalty program to provide Grubhub ordering to members at 500 locations. Travelers, who are willing to spend on meaningful experiences, present a significant opportunity for Grubhub.
(Image Source)
GLOGrubhub is actively pursuing new customers and boosting its sales by targeting hotels that don’t provide dining services. Adam Herbert, Senior Director of Grubhub Onsite Sales and Partnerships, explained in an interview with PYMNTS that the company sees a significant opportunity in addressing the dining needs of hotel guests, particularly those staying in hotels without on-site dining options. Grubhub aims to capture the demand of these travelers who seek convenient food options in unfamiliar places, encouraging them to use Grubhub’s marketplace.
Herbert stated, “In the hospitality realm, we’re addressing the needs of travelers when it comes to meals. Our partner properties lack on-site dining, which means guests would typically need to go elsewhere for meals. Recognizing that not everyone has the means to go into town for food, we’re simplifying the process for guests by allowing them to order from local restaurants and have food delivered to their hotel.”
Grubhub has formed a partnership with Choice Hotels’ Choice Privileges loyalty program to provide Grubhub ordering to members at 500 locations. Travelers, who are willing to spend on meaningful experiences, present a significant opportunity for Grubhub.
To tap into this market, Grubhub is actively seeking opportunities to expand its platform beyond the traditional marketplace. However, Grubhub faces challenges in terms of adoption. A study from PYMNTS Intelligence’s Connected Dining series found that as of June, 40% of consumers had used an aggregator to place an order at least once in the previous six months, with only 5% of restaurant customers placing their last order through an aggregator. Additionally, while 35% of aggregator users reported making purchases from Grubhub, 77% used the category leader DoorDash, and 49% used Uber Eats.
As Grubhub expands its presence in the hospitality industry, the company focuses on areas where there is a clear need and where it has already established a delivery network and partnerships. Location is a crucial factor in assessing potential partnerships to ensure a sufficient supply of restaurants and drivers, ensuring guests have options and receive their meals promptly. This is essential due to the challenging economics of restaurant delivery, which offer little room for error and require careful consideration of costs to maintain profitability.
