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How Grubhub Has Accelerated Its Growth In The Online Food Delivery Market In The US?

Even though the pandemic had a significant impact on the entire US economy, one industry that benefited was online meal delivery services. During the COVID-19 pandemic, the market in the United States more than doubled, continuing a robust trend of 8% growth. Because of social distancing conventions, food delivery apps like Grubhub profited immensely from rising home delivery demand.

This blog will take you through a quick study of Grubhub’s tremendous expansion. We picked cities with the biggest number of Grubhub users for this study (New York, Chicago, and Boston).

biggest number of Grubhub users

According to the graph, New York has the most users, accounting for approximately 37 percent of total purchases. Miami, on the other hand, had the lowest percentage of sales (7%). We can see that states with a larger population have more sales than those with a smaller population.

Key Information
New York has the most Grubhub restaurants (11,655), followed by Chicago (6,150) and Boston (1,997).
On Grubhub, 57% to 60% of clients are satisfied with their online ordering experience.
Which Factors Are Considered As The Success Of Food Delivery Apps?
Among the main online meal delivery services in New York City, Grubhub had the biggest percentage of sales (37%). Let’s take a look and see what makes Grubhub and other online meal delivery services successful.

1. Average Delivery Time

Average Delivery Time Studies have shown that on-time delivery is a critical aspect in ensuring that food delivery apps generate repeat business. Consumers, especially hungry clients, do not like delays. As a result, among the most important elements in reviewing meal delivery applications is the average delivery time.

The following table shows the projected Grubhub meal delivery times for New York, Chicago, and Boston:

Grubhub meal delivery times

Grubhub users in Chicago must wait an average of 41 minutes for their order to be delivered. Take a look at the graph below:

an average

Grubhub has created a new function called ‘Grubhub Guarantee’ in order to minimize consumer disappointment and enhance its services. Customers may expect on-time meal delivery and the best pricing among rivals.

If the requirements aren’t reached, Grubhub compensates you with free meals through Grubhub Perks. All users have to do is submit their claims using the app. As a result, qualified orders get Guarantee benefits that may be used for future transactions.

2. Pricing and Discounts

In 2020, the online meal delivery business in the United States will be worth $21.2 billion dollars. Food costs are one of the most crucial variables influencing the success of these applications. Without a question, the pandemic has accelerated the expansion of this sector. People continue to prefer purchasing food online because of the discounts and savings opportunities.

The app is also recognized for its low-cost menu selections and special promotions. Similarly, Grubhub promo codes let customers save money on every order. Furthermore, the Grubhub+ program provides members with appealing incentives like special deals at certain restaurants and unlimited free delivery on orders over $12, to name a few.

The following graph depicts the average pricing of food items on Grubhub:

average pricing of food items on Grubhub

3. Cuisine Variety

Every month, hundreds of eateries are added to Grubhub’s ‘Restaurant Inventory.’ As a result, the app can provide a diverse choice of cuisines to users. The graph below provides a fast overview of the total number of cuisines Grubhub and Doordash provide in various cities.

total number of cuisines Grubhub and Doordash

Aside from the variety of alternatives, great quality also encourages customers to place further orders. As a consequence, Grubhub assures that its consumers have easy access to popular, well-reviewed cuisines. The graph below depicts some of Grubhub’s and Doordash’s most popular cuisines.

Grubhub’s and Doordash’s most popular cuisines

Grubhub’s and Doordash’s most popular cuisines

4. Customer Service Experience

According to a recent poll, approximately 80% of consumers were dissatisfied with delivery. Ensuring the quality of crucial contacts is one strategy to provide a fantastic client experience. According to the poll, possible difficulties such as inconsistent delivery time updates, a sudden jump in delay periods, and other issues might stymie the effectiveness of these applications.

Grubhub implemented several changes to improve its in-app consumer experience. As a result, the company has advised eateries to provide as much information as possible on the status of each order. Users may get real-time information on food packaging, pickup, and delivery via the restaurant platform.

Rather than the typical two-minute minimum call time, consumers may now make an order via the app in 45 seconds.

5. Reviews and Ratings

According to studies, more than half of 18 to 34-year-olds consult internet evaluations before making a dining selection. The success of meal delivery applications like Grubhub is largely determined by ratings, reviews, and general consumer happiness.

What Is The Popularity Of Grubhub?
Users who read Grubhub evaluations are 1.5 times more likely to place an order than those who do not. It’s no surprise that the company places a premium on getting positive feedback from its clients.

Grubhub has made several initiatives to differentiate itself from its competitors and improve the customer experience. It primarily imposed a tight standard that listed eateries and their delivery partners must adhere to. These standards guarantee that users receive the proper orders on time with good quality. This has played a crucial role in generating favorable outcomes.

generating favorable outcomes

It’s worth mentioning that over half of Grubhub’s customers gave the available menu selections a 4 out of 5-star rating (in all 3 cities). Take a look at the graph below:

4 out of 5-star rating

A closer examination of the evaluations uncovered the passion behind them. The sentiment analysis is presented in the graph below.

sentiment analysis

If you look attentively, you’ll notice that roughly 57 % to 60% of clients are satisfied with their orders. Furthermore, in all three locations, roughly 8% of customers left neutral ratings. In comparison, we discovered that the majority of DoorDash customers do not leave reviews or ratings.

In the graph below, you can see how roughly 76% of consumers avoid leaving reviews on Doordash. Users may become distrustful due to a lack of reviews and consumer ratings, prompting them to switch to alternative meal delivery applications.

consumers avoid leaving reviews on Doordash

Even though the food delivery sector is flourishing, Grubhub and Doordash should not rest on their merits. You’ve probably figured out how concentrating on the aforementioned aspects might help you maintain client happiness and loyalty.

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