More than 22 million diners use Grubhub actively. The delivery service is present in more than 3,200 United States cities and London.Įvery day, 500,000 orders are processed and last year alone Grubhub was responsible for $6 billion in food sales to local restaurants. Grubhub features more than 300,000 restaurants on its app for you to choose from and partners with over 155,000 of those restaurants. The well-known Chicago-based food delivery service has been connecting diners with local takeout restaurants since it was founded in 2004. But the less commission a restaurant pays, the lower they’ll appear on a search. Depending on where the restaurant is listed on the company’s ranking, this extra commission ranges from 2.5% to 17.5%.Įssentially, restaurants get to choose their level of commission rate as long as the rate is within Grubhub’s base range. The company charges extra for sponsored listings. The third step is called extra commission. But this fee is only a small portion of the company’s income, as 80% of the fees are given straight to the people delivering the food. Diners pay for a standard delivery charge, which is pretty normal especially when it comes to delivery. The delivery service also gets part of the delivery fee. The commission comes directly from the restaurants. Starting with the commission fee, the majority of Grubhub’s income stems from the 5-15% fee. You may be starting to wonder about the Grubhub business model.
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