GrubHub is an online food ordering system that gives users the ability to find restaurants nearby in which they can order food items online for free.
Users can browse restaurants within their own city, search according to food category or even specific dishes. Orders can be placed online or over the web and mobile.
While GrubHub and eat24 and a couple of other competitors seem to consume most of the online delivery market, is it possible for you to get a taste of it? How can you tap into this market?
If you are looking to create your own professional online ordering app and delivery site, you are in luck.
There are ways for you to establish your online presence easily and affordable. By using a pre-made software script like iScripts NetMenus, you can effectively build your online business.
Rather than devote a large number of finances to site development, installing the GrubHub clone script on your own server will give you a ready-made site allowing users to easily lookup for nearby restaurants, customize orders and get warm and fresh food delivered at their doorstep.
This multi-restaurant online food court system gives the user access to one powerful administration panel which allows them to list participating restaurants, customize menus, manage user plans, create memberships and many more.
Google Maps is integrated into the software in order to help users easily locate restaurants.
A built-in feedback system allows users to add and view ratings, similarly to GrubHub. Customizing the website is extremely simple as the software is an open-source script hence allowing customization at the preference of the user.
The goal of GrubHub is to make the online food ordering system and food delivery business easier. It connects the best food joints with customers and makes the ordering systems as an option for users. Multi-restaurants are doing this with the help of the food delivery app.
Value Propositions of GrubHub
GrubHub offers value propositions for customers and restaurants. Restaurants can manage the admin panel and can make changes when needed.
- They can order meals online
- They can browse menus of various restaurants
- 24/7 customer support
- They can track their order
- Extended customer base
- Get an online platform to serve its customers
- The commission is paid only for GrubHub orders
At our busy times, we will be happy if we get the food we wished for at our doorstep. The customer business in GrubHub business model are:
- People don’t want to cook
- People who love to eat from outside
- People who want to get delivered at the doorstep
- Which do not have delivery guys
- Those which do not take an online order
- Restaurants which want more customers
Working of GrubHub
The main 4 steps of GrubHub are:
Browse: Users can browse online menus of various restaurants. Users can also search for nearby restaurants.
Place Order: Users can place their orders easily and make transactions through the payment gateways.
Preparation and Packing of order: When GrubHub receives order it will forward to the respective restaurants. The restaurant will prepare food and pack it once they receive the order.
Push notification: Driver and customer will be notified when the order is ready to pick-up and when the driver is on the way to deliver.
Delivered: The delivery boy of GrubHub will pick up the order and deliver to the customer.
Let’s look at the Doordash clone!
How does Grubhub make money?
The Grubhub app revenue model is divided into three parts. Let us look at the ways Grubhub makes money.
Delivery fee: Grubhub charges a 20-40% delivery fee from customers. Customers are ready to pay this percentage for the service provided by Grubhub. And also this fee is given by users. The pickup delivery workers will get the majority of the delivery fee for their service.
Commission fee: For each deal, Grubhub takes a 12.5% commission. The percentage of commission fees can range between 5% to 15%. This amount will be shared by Grubhub and restaurants. This is the major source of Grubhub’s income.
Extra commission: The extra commission is for ranking the restaurant on top in the category. The extra commission is taken for featuring restaurants on-demand and the percentage ranges from 2.5% to 17.5% depending on the ranking hierarchy.
Pros and Cons of Online Ordering System
PROS of Online Ordering System:
- Offer more food options
- Increase shopping experience
- Save Time for both customers and owners
- Cut down waste for owners
- Optimize those existing processes for owners
- Increase sales for owner
- Empower Chefs
- Get more profits on leaner overheads
CONS of Online Ordering System:
- Lose huge and heavy money between 20–30% of hard work to giants such as Grub Hub, Eat24, and more
- Lose your identity
- Lose your web presence
- Lose your business eventually as these stores can build their own inventory
- Leave the market without a fight
- Be an eternal slave or dependent to these giants
Purpose of an online ordering system
The main benefit of using an online ordering system is for both customers and businesses. Using a website or mobile app, customers can browse for the available restaurants, dishes and can easily place an order. And Restaurants can streamline their order management, no worries on the communication errors, less time to take customer orders.
So why is it so important to use an online ordering system for your business?
- Customer Convenience
- Customer Loyalty
- Few Errors
- Greater Efficiency
- Improve Online presence
- Business Intelligence and Integrations
How does an online ordering system work?
An online ordering system works by providing a website or mobile app. It is a platform where customers can view the menu of different restaurants and place an order. Using the app, restaurants can accept or reject orders.
Marketplace ordering systems provide a single website or mobile app that connects a list of restaurants in a single platform. Marketplace ordering systems are like UberEats, Deliveroo, EatNow, etc.
Standalone ordering systems allows restaurants to create unique websites. Standalone systems are cheaper than marketplace systems. This system allows for branding and customization.
When it comes to which type of online ordering system you should use, the best solution is to utilize both systems.
Grubhub Business Model
Grubhub works as per the business model. When users food orders on a Grubhub app, the delivery person will collect the order from the respective restaurant and get it to the users in time. For every delivered order Grubhub charges a commission ranges from 5% to 15%
The three things that work in favor of restaurants are:
- No charges for subscription or upfront fees
- The platform doesn’t allow restaurants to apply offers inside the app
- Restaurants are only asked to pay when the order is generated
Start your own online food delivery business with ease and less or no risk! Now food ordering scripts are available in large count. Its source code is open. Choose your open source script and make a user-friendly real-time delivery system including mobile apps. Clones of many food ordering apps are available today, like UberEats clones, Postmates, Seamless.
By saving time and money, you can place all your focus on attaining restaurants and increasing traffic. Driver app features are also added in the single app.
Consider starting local and expanding afterward. It is important to drive traffic towards your site by focusing on a niche target such as a specific area or type of dining establishment.
Try to use the clone script for GrubHub and build your app for the online food ordering business.
Find success in your own online business by taking advantage of a smart solution that will save you time!
iScripts Netmenus is an online multi-restaurant ordering system where you can build your online food ordering system!