Grubhub is enhancing its subscription program to meet the growing demand for membership schemes, which are increasingly replacing traditional points-based rewards programs for restaurant customers. According to Launika Raykar, Grubhub's VP of loyalty, customer engagement, and partnerships, subscription models have become the standard for loyalty in the restaurant industry.
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GLOGrubhub is enhancing its subscription program to meet the growing demand for membership schemes, which are increasingly replacing traditional points-based rewards programs for restaurant customers. According to Launika Raykar, Grubhub’s VP of loyalty, customer engagement, and partnerships, subscription models have become the standard for loyalty in the restaurant industry. Similar to other companies like Walmart+, Instacart+, and Grubhub+, subscription programs have become synonymous with loyalty and are now expected by customers.
The latest updates to Grubhub’s subscription program include lower service fees, a 5% credit back on pickup orders, and upcoming perks like Fuel Rewards in partnership with Shell, providing 5 cents/gallon savings at Shell gas stations. The focus on offering incentives for pickup orders makes sense, as consumers often prefer ordering directly from restaurants’ channels for pickup rather than opting for delivery through third-party aggregators.
By encouraging pickup adoption, Grubhub aims to increase its share of pickup sales and drive engagement with its platform. Additionally, subscribers tend to explore other verticals offered by Grubhub, such as convenience, grocery, and alcohol purchases, making the subscription model even more valuable.
Grubhub has been successful in retaining subscribers through partnerships, offering free limited-time subscriptions to Amazon Prime members, Bank of America cardholders, and Lyft Pink subscribers. These partnerships have proven effective in retaining customers even after the free memberships expire, especially among Amazon Prime members, who are accustomed to the convenience of home delivery. This strategy has helped Grubhub achieve long-term retention and increased frequency of orders from these customers.
Source: Grubhub
