Ava AbbottGrubhub is an online and mobile food ordering and delivery platform based in Chicago, Illinois. The company was founded in 2004 by Mike Evans and Matt Maloney and went public in 2014. In Feb 2020, the firm launched its Grubhub+ monthly subscription program.
Customers pay a monthly fee to access free, unlimited food delivery from partner restaurants. In 2021, Grubhub partnered with Yandex to use Yandex robots to deliver food to college students. The food-tech company has around 2,773 employees and fulfills more than 745,000 orders daily. For fiscal 2021, Grubhub made over $500 million in revenues per quarter. [1]
Grubhub expanded its platform and product portfolio through acquisition, including Seamless, Eat24, BiteGrabber, LevelUp, Tapingo, and OrderUp. On Jun 9, 2020, Just Eat Takeaway agreed to purchase Grubhub for $7.3 billion. This move came about a month after Grubhub declined Uber’s takeover offer. The merger of Just Eat Takeaway and Grubhub was completed in Jun 2021, creating one of the largest food delivery services globally. Grubhub faces stiff competition from UberEATS, DoorDash, Postmates, Deliveroo, Slice, and EatStreet. [2]
Here is an in-depth analysis of top Grubhub’s competitors and alternatives:
1. UberEATS
Year founded: 2014
Headquarter: San Francisco, California
UberEATS is a leading 24/7 food delivery service offered by Uber. The company controls 22% of the US food delivery market. In 2021, UberEATS had around 10,000 employees and generated $4.8 billion in revenue. [3]
UberEATS integrates with Uber’s taxi service platform, with millions of drivers globally. The app allows users to order meals and ingredients instantly or pre-order a week in advance.
In 2020, Uber acquired Postmates for $2.4 billion and boosted UberEATS’s competitive edge over Grubhub. But Grubhub leveled the playing field in 2021 by merging with Just Eat Takeaway.
As Uber’s food delivery service, UberEATS has enough resources to compete and grab Grubhub’s market share. UberEATS is the top Grubhub competitor and alternative.
2. DoorDash
Year founded: 2013
Headquarter: San Francisco, California
DoorDash is an online food ordering and delivery platform. The company went public in 2021 at a $72 billion valuation. For FY 2021, DoorDash generated $2.89 billion and a gross order value of around $36 billion. With over 7,550 employees, DoorDash is three times larger than Grubhub. [4]
DoorDash users can search and order drinks, groceries, and ready-made meals from over 300,000 local restaurants and grocers. The company controls 56% of the US food delivery market. In 2021, DoorDash launched its own ad platform and partnered with Albertsons.
This partnership allows DoorDash to offer more than 40,000 grocery items on-demand delivery. The food-tech giant acquired Square’s Caviar in 2021 for $410 million. This acquisition increases DoorDash’s competitive advantage over Grubhub. [5]
3. Postmates
Year founded: 2010
Headquarter: San Francisco, California
Postmates is a food delivery service that connects more than 600,000 US restaurants to consumers. In 2020, Uber acquired Postmates for $2.65 billion. Before the acquisition, Postmates was making around $500 million in revenues annually. Its revenue increased to $909 million in 2021.
Postmates is a ‘deliver-everything’ platform, while Grubhub specializes in food delivery. Users can order meals, foodstuffs, alcoholic drinks, and more. The platform’s popularity varies between different cities.
Postmates accounted for 29% of sales in Los Angeles in the first four months of 2021. The company fulfilled only 1% of sales in Philadelphia, Boston, and New York. But it can leverage Uber’s extensive network to grab more market share in these cities. Postmates is one of the top Grubhub competitors in the US. [6]
4. Deliveroo
Year founded: 2013
Headquarter: London, UK
Deliveroo is a British online food delivery company with over 200 offices globally. It operates across Europe, Australia, Singapore, Hong Kong, the UAE, and Kuwait. In 2021, Deliveroo had around 2,300 employees and over 110,000 self-employed couriers. The company’s revenue for 2021 was $2.1 billion. [7]
The main competitive advantage for Deliveroo is its customer-centric pre-order service. The food delivery specialist leverages technology to enhance customers’ experience.
In 2021, Deliveroo expanded its offering to include more grocery options. This segment accounted for 8% of GTV in the second half of 2021 and helped the company increase its market share. Deliveroo is a worthy Grubhub competitor. [8]
5. Slice
Year founded: 2010
Headquarter: New York City
Slice is a food-tech platform that powers the largest network of pizzerias in the US. The company partners with over 16,000 independent pizzerias in 3,000 cities across all 50 states. In 2021, Slice had 693 employees and surpassed $2 billion in cumulative sales since its founding.
Slice has more than double Domino’s footprint in the US, making it the nation’s largest pizza network. The company won Fast Company’s 2021 Most Innovative Companies Award.
In Aug 2021, Slice unveiled new tiered packages to better serve the needs of independent pizzerias. More than 16,000 small pizza joints rely on Slice’s specialized technology, data insights, and marketing services to thrive. Slice is a formidable Grubhub competitor. [9]
6. EatStreet Inc.
Year founded: 2010
Headquarter: Madison, Wisconsin
EatStreet is a Madison-based food ordering and delivery service. In 2021, EatStreet added about 200 area restaurants to its app and doubled its revenue. The company hired 200 drivers in 2020 to meet increased demand, doubling its driver base to around 400. [10]
EatStreet operates as a centralized marketplace that allows customers to order delivery and takeout from restaurants in their area. The platform caters to more than 15,000 restaurants and delivers in 25 cities across the US.
In Jul 2021, EatStreet partnered with the Milwaukee Brewers to launch Whoopensocker Burger & Brat Co. This delivery-only restaurant will deliver ballpark eats like the “Wiscurdsin” and the “Tailgater” to burger and brat lovers statewide. EatStreet is one of the best Grubhub alternatives in Wisconsin. [11]
7. ChowNow
Year founded: 2011
Headquarter: Los Angeles, California
ChowNow is an online discovery app and food ordering platform. Customers can search available restaurants in their area based on the food type and place their orders. In 2021, ChowNow’s full-year revenue was around $100 million.
ChowNow’s fulfilled orders reached the 100-million mark in late 2020. Today, more than 20,000 restaurants across North America use ChowNow to power their online ordering systems. Users can customize the app with their brand colors and logos. They can also integrate social media accounts to allow customers to order via their preferred channels.
Unlike Grubhub, ChowNow is highly profitable. This commission-free platform charges restaurants a flat monthly subscription fee, increasing its competitive advantage over Grubhub. [12]
8. Caviar
Year founded: 2013
Headquarter: San Francisco, California
Caviar is a food ordering and delivery solution for consumers. Users can order food from local eateries and live-track their orders to the doorstep. In 2019, DoorDash acquired Caviar from Square Inc. for $410 million.
Caviar charges a delivery fee based on the distance from the restaurant and fulfills larger orders than Grubhub. The company enlists drivers over 18 years with two years of experience, while Grubhub requires drivers to be 19 years or older. As a subsidiary of DoorDash, Caviar has enough resources to poach some customers from Grubhub. [13]
9. Instacart
Year founded: 2012
Headquarter: San Francisco, California
Instacart is the leading grocery pick-up and delivery service in the US. The platform also delivers fresh food, drinks, snacks, and alcohol to customers’ doorsteps, making it Grubhub’s competitor. In 2021, Instacart had more than 500,000 active shoppers and recorded a 30% increase in order volume. Its convenience business more than doubled within six months.
Instacart partners with the leading retailers and delivers to more than 5,500 cities in North America. In Jan 2020, the company started delivering ready-made meals. But the option was not prominent in its app.
Instacart launched the Convenience hub in Sep 2021 and the Ready Meals hub in Feb 2022. Customers can order prepared food from grocery stores like Publix and Kroger through the Ready Meals hub. Its convenience hub serves snacks and essentials. Instacart is one of the most innovative Grubhub and alternatives. [14]
10. Waitr Holdings Inc
Year founded: 1999
Headquarter: New York City, NY
Waitr Holdings is a food-tech company that owns Waitr and Bitesquad. Both platforms offer food ordering and delivery services. In 2021, Waitr Holdings generated around $200 million in revenue. [15]
Both Waitr and Bitesquad compete against Grubhub. Consumers can order carry-out meals on the Waitr platform and place complex schedule orders via Bitesquad. Bitesquad is the best Grubhub alternative for companies and event organizers with large pre-orders.
Catering to different market segments via Waitr and Bitesquad increases Waitr Holdings’ competitive edge over Grubhub.
11. Delivery.com LLC
Year founded: 1995
Headquarter: New York, NY
Delivery.com is an online and mobile platform that connects consumers with local businesses. Users can order food and consumer products from restaurants and stores in their neighborhood for on-demand delivery. In 2021, delivery.com delivered from over 19,000 local businesses in more than 2,000 cities.
Delivery.com connects more than two and a half million customers to restaurants, liquor stores, dry cleaners, and other local businesses.
In Mar 2021, the company expanded into three markets formerly operated by Delivery Dudes franchisees. Consumers in Reading, PA, Ponte Vedra Beach, FL, and Coral Gables, FL, can now access its food ordering and delivery service. Delivery.com is a worthy Grubhub competitor. [16]
12. FreshDirect
Year founded: 1999
Headquarter: New York City, NY
FreshDirect started as an online grocer and expanded into a food delivery service in 2020. In 2021, FreshDirect had around 3000 employees. The company generates over $600 million in revenues annually.
FreshDirect users can place their orders via Express Delivery Service and get their meals in less than 1 hour. Launched in 2020, Express Delivery Service offers an alternative to Grubhub. In Jan 2021, Ahold Delhaize and Centerbridge acquired FreshDirect for an undisclosed amount.
The new owners are financing FreshDirect’s expansion, including building micro-fulfillment centers on the West Coast. FreshDirect is a worthy Grubhub competitor. [17]
13. GoPuff
Year founded: 2013
Headquarter: Philadelphia, Pennsylvania
GoPuff is a consumer goods and food delivery platform available in more than 650 US cities. The company also operates in the UK after acquiring Dija and Fancy in 2021. In Jul 2021, GoPuff had around 10,000 employees and raised $1 billion at a $15 billion valuation.
GoPuff is an online convenience store and food delivery service, all in a single app. But it is more focused on delivering snacks, ice creams, and drinks than food. Users can search products on the app by name or brand before placing their orders.
In Dec 2021, GoPuff commenced another round of funding to raise $1.5 billion at a valuation of $40 billion. These funds will facilitate its planned IPO scheduled for mid-2022. GoPuff is one of the best Grubhub alternatives in the Midwest and Southern US. [18]
14. Dumpling
Year founded: 2017
Headquarter: Seattle, Washington
Dumpling is a food delivery startup that helps entrepreneurs start personal shopping businesses. In its Series A funding round, Dumpling raised $6.5 million. The company used the funds to expand its capacity, increasing its order volume by 2000%.
Dumpling challenges the status quo in the US food-tech sector with a unique model. More than 2,000 personal shoppers from 50 states launched their food delivery businesses on this platform.
Grubhub relies on its employees and personal shoppers to fulfill more than 745,000 orders daily. Instead of working for Grubhub, personal shoppers can set up their own businesses on Dumpling. This platform is one of the best Grubhub alternatives for freelance food delivery specialists. [19]
15. Favor
Year founded: 2013
Headquarter: Austin, Texas
Favor is an on-demand delivery service that operates in 130 towns across Texas. Consumers and businesses can use its user-friendly app to place their orders. In 2021, Favor had more than 100,000 runners and generated around $377 million in revenue.
Favor delivers orders within an hour, including food, groceries, prescription medications, parcels, and packages. Its delivery team operates like personal assistants. By mid-2021, the company had fulfilled more than 50 million Favors. Favor Delivery is the best Grubhub alternative in Texas. [20]
References & more information
- Food News (2021, Nov 4). Grubhub looks to the future with new partnerships new ways to order. Food On-Demand News
- Dallke, J. (2021, Jun 15). New CEO at Grubhub after $7.3B mergers with Just Eat Takeaway is complete. Business Journal
- Lock, S. (2021, May 12). Uber Eats revenue worldwide 2017-2020. Statista
- Great Speculations (2021, Oct 20). What’s New with DoorDash Stock? Forbes
- Bursztynsky, J. (2021, Jun 21). DoorDash and Albertson’s partner on same-day grocery delivery from nearly 2,000 stores. CNBC
- Coppola, D. (2022, Jan 31). Postmates’ share of sales in select cities in the US 2021. Statista
- Iqbal, M. (2022, Feb 18). Deliveroo Revenue and Usage Statistics. Business of Apps
- Sandle, P. (2022, Jan 20). Deliveroo meets the top growth forecast as the dining in trend stays intact. Reuters
- Slice Inc. (2021, Aug 17). Slice Rolls Out Tiered Service Packages to Meet the Unique Needs of Independent Pizzerias. PRNewswire
- Mesch, S. K. (2021, Apr 27). EatStreet doubles drivers, add 200 restaurants in Madison amid pandemic. Wisconsin State Journal
- Lesk, S. (2021, Jul 15). Milwaukee Brewers, EatStreet launched a delivery-only concept to join a trending industry. Business Journal
- Reader, R. (2021, Oct 8). This restaurant tech is actually helping independent eateries survive. Fast Company
- Helling, B. (2022, Jan 20). Food Delivery Faceoff: Grubhub vs. Caviar. Gig Worker
- Malik, A. (2022, Jan 13). Instacart doubles down on its ready-made meals offering, with a new hub and faster delivery. TechCrunch
- Smith, H. (2021, Oct 27). Why Waitr Holdings Stock Sank Today. The Motley Fool
- com (2021, Mar 22). Former Delivery Dudes markets are joining delivery.com. PRNewswire
- PYMNTS (2021, Mar 18). FreshDirect Looks to Micro-Fulfillment for Post-Pandemic Expansion. PYMNTS
- Lunden, I. (2021, Dec 16). GoPuff is raising $1.5B in a convertible note at a $40B valuation, ahead of going public in mid-2022. TechCrunch
- Mascarenhas, N. (2020, Jul 20). Dumpling launches to make anyone become their own Instacart. Tech Crunch
- Favor (2021, Nov 22) Favor Teams Up with the Dallas Cowboys to Deliver the Ultimate VIP Private Watch Party. PRNewswire
- Featured image by Jon Tyson
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