Grubhub Waives Delivery and Service Fees on Orders Over $50

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Grubhub has announced that it will permanently eliminate delivery and service fees on all restaurant orders over $50. This new policy, which is unique in the food delivery industry, is part of Grubhub's effort to attract more customers and close the gap with rivals like DoorDash and Uber Eats. The company's new Super Bowl ad features actor George Clooney highlighting the fee waiver.

Why it matters

Grubhub is facing challenges in user growth and trails behind competitors like DoorDash and Uber Eats. This new fee waiver policy is an attempt to make Grubhub more appealing to customers by putting more money back in their pockets, especially during difficult economic times. It also sets Grubhub apart from its rivals, who typically only offer limited-time fee waivers or tie them to paid subscription services.

The details

Grubhub says the delivery and service fees on orders over $50 usually average about $13 per transaction across food delivery apps. By permanently eliminating these fees, Grubhub hopes to drive more large orders and increase its competitiveness. The company recently acquired Claim, a startup that provides cash-back rewards at local restaurants, which Grubhub plans to integrate to further engage customers.

• Grubhub's new fee waiver policy will go into effect soon.

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