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Thus, Grubhub is offering a risk-free service to restaurants to grow their business. Indeed, for restaurants, the takeout is a way to grow their business without adding seating capacity or staff.Īlso, being able to promote takeout is expensive, inefficient and its success can’t be tracked. Grubhub has been able to deliver a unique value proposition for restaurants, as it generates higher margin takeout orders at full menu prices.

Therefore, it is critical to distinguish between the value proposition offered to those two partners. Indeed, the Company has a powerful two-sided network that creates value for both restaurants and diners. The value proposition changes according to the key partner Grubhub is able to reach with its services. The value and ability to grow its business highly depend on Grubhub ability to keep offering a compelling value proposition for those two key partners. Who are Grubhub key partners? Grubhub two-sided marketplace explainedĪs a two-sided platform, Grubhub offers value for two key partners:

Grubhub has been able to grow substantially following the merger with Seamless and aggressive acquisitions of other brands. The company was founded in 2004, and it merged with Seamless – founded in 1999 – in 2013. Grubhub portfolio of brandsĪt the time of this writing, Grubhub comprises a portfolio of brands that includes Grubhub, Seamless, LevelUp, Eat24, AllMenus, MenuPages and Tapingo. Also, it charges restaurants that use Grubhub delivery services and when diners pay for those services. The Grubhub business model comprises a portfolio of brands like Seamless, LevelUp, Eat24, AllMenus, MenuPages, and Tapingo. The company makes money primarily by charging restaurants a pre-order commission, and it generates revenues when diners place an order on its platform. In 2018 the company connected 95,000 takeout restaurants in over 1,700 U.S. Grubhub is an online and mobile platform for restaurant pick-up and delivery orders. Digital Business Models Podcast by FourWeekMBA.Business Strategy Book Bundle By FourWeekMBA.An Entire MBA In Four Weeks By FourWeekMBA.100+ Business Models Book By FourWeekMBA.