Curious about how much Grubhub costs? In this article, we’ll delve into the various components contributing to the overall expense of using this popular food delivery service, including a delivery fee, additional service fee, and any additional charges.
Whether you’re new to the food industry or already running a restaurant and considering selling your dishes via food delivery apps, understanding these costs can help you make informed decisions about utilizing Grubhub’s delivery service.
What is Grubhub?
Grubhub is an online and mobile food ordering and delivery platform that connects diners with local restaurants. It operates in numerous cities across the United States, and it extends two key services to restaurants:
- Option to be featured on their platform (Grubhub Marketplace)
- Integration of their online ordering system onto the restaurant’s website (Grubhub Direct)
Through the Grubhub marketplace, hungry customers can browse menus of independent restaurants, place orders, and either pick them up or have them delivered to their doorstep.
Alternatively, with GrubHub Direct, customers can order directly from the restaurant’s website.
How does Grubhub work?
Through its online platform, Grubhub connects hundreds of millions of customers with local restaurants. Users browse through various cuisines and restaurant options, selecting dishes and customizing orders to their preferences.
Once the order is confirmed and payment is processed securely online, the restaurant receives the order through the Grubhub platform. From there, they prepare the food according to the customer’s specifications.
Grubhub dispatches a delivery driver to pick up the order from the restaurant and transport it to the customer’s specified location, or a restaurant delivers food with its own delivery driver fleet for orders placed on Grubhub.
After receiving their order, customers can rate their experience and provide feedback, ensuring continuous improvement in service quality.
Alternatives to Grubhub: How to save on commissions?
Regarding online food ordering, there are numerous alternatives to Grubhub. Some of these alternatives include the following:
- UpMenu
- DoorDash
- Caviar
- Uber Eats
We prepared a comparison matrix of Grubhub features and its alternatives.
| System | GrubHub | UpMenu | DoorDash | Caviar | Uber Eats |
|---|---|---|---|---|---|
| Commissions | Starting from 5% | No commission fees | Starting from 15% | Starting from 30% | Starting from 15% |
| Free trial | Yes | Yes | Yes | No | Yes |
| Customer data ownership | Yes | Yes | No | No | No |
| Your Own Branded Mobile App | No | Yes | No | No | No |
| Your Own Website With Ordering | Yes | Yes | No | No | No |
| Control Over Marketing Activities | No | Yes | No | No | No |
| Delivery Service | Yes | No | Yes | Yes | Yes |
Remember that the option to explore is establishing your own delivery service or outsourcing to a third-party provider. Doing so can reduce delivery fees and grant you greater autonomy over the delivery process.
Thanks to an online ordering system, you can start selling food online directly from your website. You just install the system on your restaurant website. Don’t have a website yet? Use a restaurant website builder to create your website and start selling online.
How much does Grubhub cost for a restaurant?
Commission rates for restaurants vary from 5% to 30%. The price depends, among others, on the marketing fee, delivery fee, and additional fees, for example, for a Sponsored Listing on the Grubhib marketplace.
Let’s see what the individual fees are below.
What are the marketing fees on Grubhub?
The marketing fee differs depending on the marketing plan a restaurant selects.
- Basic: The marketing rate for this plan starts at 5% (excluding delivery fee) and covers essential features necessary to establish and operate your account. A restaurant gets a welcome kit with tools to kick-start its listing on the Grubhub Marketplace and a professional menu photoshoot. The main disadvantage of this plan is the higher delivery fees paid by the diners.
- Plus: The marketing rate for this plan starts at 10% (excluding delivery fee), and it covers all the features available in the Basic plan. It allows the restaurant to reach more customers thanks to lower delivery fees paid by the diners and getting access to Grubhub Plus (GH+) diners for eligible restaurants.
- Premium: The marketing rate for this plan starts at 15% (excluding delivery fee), and it covers all the features available in the Plus plan. A restaurant receives access to promotions and loyalty tools. Additionally, a restaurant gains the capability to interact with its fans by responding to ratings and reviews. For a 5% extra charge, restaurants can use a Sponsored Listing service. This service promotes their restaurant in email blasts and ensures a top spot on Grubhub Marketplace.
How much does Grubhub charge for delivery?
Upon selecting the package rate during sign-up, restaurants can choose between utilizing Grubhub’s drivers, their own delivery personnel, or a blend of both.
Grubhub charges the following delivery fees depending on the chosen delivery option:
- Self Delivery – You incur no delivery fees when using your own delivery driver fleet for Grubhub orders.
- Grubhub Delivery – You can select Grubhub Delivery, which incurs a delivery fee starting at 10%, allowing Grubhub drivers to handle all logistics.
- Supplemental Delivery – It is an option to use Grubhub drivers for deliveries beyond your current service area or during peak hours. You’ll incur a delivery fee exclusively when opting for a Grubhub delivery driver.
Additionally, pickup remains an available option regardless of your chosen delivery method.
What are the extra fees charged by Grubhub?
There is a service fee that changes, but it is usually a percentage of the order total that goes to Grubhub to cover their operating costs.
The Grubhub standard processing fee is 3.05% of the order value + 30 cents per prepaid transaction to cover credit card processing and fraud monitoring.
How much does Grubhub charge restaurants on average?
The average fees charged by Grubhub to restaurants typically vary depending on the type of services utilized (delivery, marketing, etc.) and the specific agreements made between Grubhub and individual restaurants. On average, restaurants may expect to pay fees ranging from 15% to 30% of the total order value.
Alternatively, to paying commission fees, consider building your restaurant mobile app and paying a flat monthly fee instead of commissions.
Check out our article on how to create a food delivery app to get more details and learn about the benefits of this solution.
Key Takeaways
- Grubhub charges various fees to businesses utilizing its platform, including marketing, delivery, and processing fees.
- Starting from the marketing fee of 5%, Grubhub usually charges restaurants 15% to 30% of the value of their orders.
- Analyze the costs of using different delivery apps before choosing the best one for your business.
- Consider using an online ordering system that offers flexibility and doesn’t charge commissions.
- TO minimize commission fees, create your online presence by developing a branded website and restaurant mobile app.
Frequently Asked Questions (FAQ)
Does Grubhub have a subscription fee?
No, Grubhub doesn’t have a subscription fee for restaurants. However, they charge various fees per order, including marketing fees, delivery fees, and processing fees.
What is the cheapest food delivery app?
The cheapest food delivery app may vary depending on location, current promotions, and individual preferences. However, some commonly known options for affordable food delivery apps include DoorDash, Uber Eats, Grubhub, and Postmates.
We recommend comparing prices, fees, and available discounts on these platforms to determine the most cost-effective option for your business needs. You can learn more about the pros and cons of different food delivery apps here.
What are Grubhub fees?
Grubhub charges various fees to restaurants and customers. These fees may include marketing, delivery, processing, and tablet rental fees for restaurants. Customers may encounter delivery fees, service fees, and small order fees. The fees vary depending on location, order size, and the services utilized.
What percentage does Grubhub take from restaurants?
Grubhub offers three marketing plans with varying fees: 5%, 10%, and 15%. Additionally, Grubhub charges a 10% delivery fee for orders utilizing their delivery service.
