With this era new technology and the improvement on overall life quality, people life are getting simpler each day. The business also shift to on-demand economy that relies around online platforms that applied not only on physical product but also services. In today Doordash vs Grubhub article, we are going to provide you more information about these two platforms that provide food delivery services for their users. If one/both of them took your interest, go check our article below.
In this article, we are going to give you information about:
– What are DoorDash and GrubHub
– Who are DoorDash and GrubHub Users
– How DoorDash and GrubHub Works
– DoorDash vs GrubHub
About DoorDash and GrubHub
DoorDash is an on-demand food delivery service that was founded in 2013 by Stanford students Tony Xu, Andy Fang and Stanley Tang. This service is runs with an app with the same name that can be downloaded for free in either App Store or Play Store. This app is used to view the restaurants that works together or in a partnership with the company and perform the ordering process. Not only limited to restaurant, they also begin to partner up with Walmart Atlanta to deliver groceries.
GrubHub is very similar if not the same with DoorDash that launched earlier in 2004. These two are in tight competition with another service like Ubereats. Taken from Bloomberg, it also has the biggest market share and the most popular takeout delivery platform in 9 major cities in the United States (data from August 2017) even though it is the youngest among the 3 platforms while DoorDash comes 4th after Ubereats and Postmates. However, this position may change if Postmates and DoorDash execute the merger decision.
DoorDash and GrubHub Users
DoorDash and GrubHub works by partnering up with restaurants, hire their drivers who called Dashers (DoorDash) and then gain revenue from both restaurants and users who order using their app. The people who make the business works are users, restaurants, and the delivery people. The users are those who order food through the app, these people are usually those who don’t want to go outside picking up their food, those who can’t cook, or those who are busy enough to move away from their spot.
The restaurants are mainly those who don’t have their own delivery service, those who want more customer by stepping up into online system, and those joint places that currently don’t have a strategic place. The Dasher itself are people who want more flexible job that can be managed as they want or people who want to have a job with good tipping.
DoorDash and GrubHub Business Model
The revenue will comes from these users and the restaurants who established a partnership with the platform. Many restaurants have connection with more than one platform depend on their own agreement. The first revenue comes from this restaurant is by revenue shares. DoorDash revenue shares start from 10-25% while GrubHub start from 5-15%. The number may change from time to time or according to their agreement.
Another revenue comes from the restaurants is by advertising. Both DoorDash and GrubHub are going to put your restaurant name on top of their list for a period of time. The listing also depend on your location with GrubHub but DoorDash doesn’t seems to use the same method. Another revenue source is from the user itself; when you use the app, there are delivery cost and the service cost that may vary in amount depend on locations or the distance.
Both of DoorDash and GrubHub has a rating option, where you can give ratings to the restaurants in their platform. This rating system is intended to give new users or those who never order from these restaurants to know what exactly they can expect when ordering from the place. Read also: DoorDash vs Ubereats here.
DoorDash and GrubHub Order Process
The process of ordering food through their app are also mainly the same. First, you have to download their app and through the homepage, you can browse the long list of restaurant in your area or the area cover by the service and when you found your restaurant, click the icon to see the menu. Here you can pick all available items and state how many of them you want. The next process will be reviewing what you have checked and inserting instructions if there is something you want to specify with your order.
The last step is confirming the order after you select the payment method. After it’s all done, you just have to wait for your food to arrive. You may also track your driver location in the app, so you can see where your food is currently at. GrubHub use a map tracking while DoorDash use a progress bar tracking. Please note that they can change/upgrade the app anytime, so such convenience may change in the future. One unique thing is that GrubHub seems to put minimum order while DoorDash is not.
DoorDash and GrubHub Benefit
Using these services bring benefit for the users, partnered restaurant, and the delivery people.
For the user:
– Better experience, pricing, and increased efficiency
– A platform to know where your order is currently at
– Always available customer service
– A very easy to use tool to access a numerous restaurants in the grip of your hand
– Don’t have to deal with delivery
– More order from customers
– Easy, cheap, and fast way to deliver customer’s orders
– Help small restaurant to enhance their sells to a wider platform
– A source of employment (full time or part time)
– An opportunity to receive good tips from customers
Now, let’s compare DoorDash with GrubHub. Both of them are very similar, yet there are some things that set them apart from each other. First is the rev-share between restaurant and the company where GrubHub take from 5-15% and DoorDash take 10-25%. Second is the fee for the marketing done in the platform that is decided with the rev-share and restaurant location with GrubHub while DoorDash seems not to use the same mechanism.
In the app, the difference is you have to order according the minimum with GrubHub, which is not required in DoorDash. DoorDash also use progress bar to show your order progress while GrubHub use a map to show where your food is currently at.
DoorDash vs GrubHub
|- 10-25% rev-share||- 5-15% rev-share|
|- Doesn’t use minimum order||- Use minimum order|
|- Use progress bar to track order||- Show progress through map|
|- Number 4 in market share||- Number 1 in market share|
All in all, the decision is all yours to make. One of them can be cheaper or more expensive depend on your location and we will recommend you to install both of them to see which is more cost effective for you if you are the user.