Grubhub doesn’t technically markup the prices as they are set by the restaurants. Although, it depends on the company’s share in the restaurants’ sales. Grubhub partners up with various restaurants and sets up their share per order.
Does Grubhub Markup Its Prices?
Grubhub charges more than the usual meal price that is advertised by the restaurants. The extra cost goes on to cover the administrative charges, service fee, and delivery fee. The comfort of ordering food online does come at a cost, but how much does Grubhub markup their prices?
It charges the restaurants that use Grubhub, and in turn, restaurants charge marked-up prices for the meal. Customers might seem to pay 5% to 15% more of their total order when they place the order. However, if they dine in, they pay the actual meal amount including the taxes. The extra charge is incurred via service fee and delivery charges or straight-up increased meal prices on the website.
How Does Grubhub Pricing Work?
On the whole, Grubhub pricing is determined by the company’s share in the restaurant’s sales. The local restaurants determine the price of menu items and the offered discounts. In order to get some profit value, the restaurants rake up their meal prices on Grubhub.
It depends on the restaurant’s percentage share acquired by Grubhub. The higher the share, including marketing and processing, the higher would be the company’s pricing system for its customers. Grubhub menu prices would reflect these charges and get a little expensive in exchange for the convenience it offers.
What Other Fees Does Grubhub Charge?
People are finally realizing the convenience and comfort of ordering food online when they create a ruckus in their kitchen. Ordering food from a takeout menu of a specific restaurant feels too dull as it offers limited options for cuisines. For a regular Grubhub user, some expenses are charged whenever customers place an order. Sometimes the cost gets heavy due to extra charges and not due to the hiked-up meal prices.
Delivery Charges:
With every order, customers have to pay a delivery fee for the distance covered from the restaurant to the home. The delivery cost is decided by the restaurants and can range from $2 to $8. The price can vary on the delivery driver’s needs, the distance covered, and the time of delivery. Customers can confirm the overall cot before placing the order.
Service Fee:
Grubhub charges a service fee ranging from 5% to 15% of the total order. The service fee is charged for the customer’s convenience of using a mobile app or website to order food. The company uses the fee to pay for inventory costs.
Small Order Fee:
Various restaurants add a small delivery fee that ranges from $2 to $4 for orders below $10. As the amount of orders is quite less, restaurants add the delivery fee to cover the delivery driver’s expense. Mostly, the minimum order is $10, however, each of the restaurants has its own policies.
Meal Cost:
The hike in meal prices on Grubhub helps in covering up the cost of advertisement, commission, and operational costs. Meal cost is the value of food the customer orders from the restaurants. The menu prices experience ups and downs according to the economical aspect. Although the extra cost is not the size of a mountain, a customer can still order their favorite meal from the restaurant hassle-free.
Is Grubhub More Expensive Than Other Delivery Apps?:
Various food delivery apps like DoorDash, Postmates, and Caviar often compete with the prices on Grubhub. Usually, Grubhub is cheaper than DoorDash due to its reduced delivery and service fee. Customers can compare the prices of the same restaurants on these apps and make the right decision.
Although, it does get a little pricey as it includes various charges excluding the ordered items. Various food delivery apps like Grubhub, Doordash, Postmates, and Uber Eats have been thriving with local revenue as people receive fresh quality meals with minimal effort.
Does Grubhub Have A Membership Program?:
Grubhub offers membership deals that help in reducing the price of each meal and other privileges. For people who order takeout regularly, Grubhub plus is a membership offer that offers various benefits for $9.99 only. Customers are eligible for Grubhub plus benefits like,
One free meal per month. Cashback up to $10 if they spend more than $100 within the first 30 days. Free unlimited deliveries for orders above $12Access to Grubhub plus customer care associates. Special access to donation charity programs.
Customers can get access to Grubhub plus for a 30-day trial period for free and try if the membership offer suits their needs. It gives them plenty of choices to choose their next meal from. Even the slightly higher rates don’t hurt the common man as they enjoy its privileges.
Conclusion:
Grubhub is an ethical, esteemed food delivery company whose daily goal is to reach maximum customer satisfaction. Ever since the pandemic, Grubhub has grown exponentially within the food delivery market. Its popularity grows with its remarkable customer support services as well as minimum pricing. With the convenience of enjoying food at home, customers rave about the countless restaurants Grubhub has partnered with.
How much fee does Grubhub take?
It charges a minimal service around $3 to $5.
How much should you tip Grubhub drivers?
You can pay the Grubhub drivers up to $5 for each delivery.
Is Grubhub more expensive than DoorDash?
Grubhub is relatively cheaper than DoorDash due to its cheap delivery fee.
