Difference Between Uber Eats and Grubhub

Online food ordering and delivery platforms have become a boon in our life. When we have the sudden urge to eat something delicious but too sloppy to get off the bed, these delivery platforms come to the rescue. Uber Eats and Grubhub are very popular food delivery companies and the ordering process is almost the same for either of them. 

Uber Eats vs Grubhub

The main difference between Uber Eats and Grubhub is that while Uber Eats is a company that delivers food throughout the world, Grubhub is exclusively for the people living in the USA. Uber Eats currently delivers in more than 45 countries worldwide while Grubhub is making effort to reach all the cities in the 50 states of the USA. 

Uber Eats and Grubhub

Uber Eats is one of the top online food ordering and delivery platforms globally. It works like any standard food delivery app and it shows real-time updates when your meal is been prepared and dispatched. Recently, Uber Eats has also included the option for pick-up location so that customers get a choice to pick it up from the restaurant but order beforehand. 

Grubhub has recently become a part of Just Eat Takeaway when it bought the company for $7.3 billion in stock in 2020. Food can be ordered from Grubhub from both the mobile application and from the website. Grubhub, after 10 years of being in the business, became a public company in 2014.  

Comparison Table Between Uber Eats and Grubhub

Parameters of ComparisonUber EatsGrubhub
Launch Uber Eats is an online food delivery platform that was launched in 2014 by Uber. Grubhub is a mobile prepared online food delivery platform that was launched in 2004 and is owned by Just Eat Takeaway. 
FoundersGarrett Kamp and Travis Kalanick founded Uber Fresh in 2014 and were renamed Uber Eats in next year. Mike Evans and Matt Maloney are the founders of Grubhub. 
AreaUber Eats offers a worldwide food delivery service across 45 countries and over 6,000 cities. Grubhub is a Chicago-based company that offers its services in all the 50 states in the USA but not in any other nation. 
DriverUber Eats allows their drivers to cash out multiple times in a day when they sign up with Instant Pay. Grubhub pays the drivers on weekly basis and the payment can take up to five days for processing. 
Ease of UseThe interface of Uber Eats is similar to that of Uber and customers can also use Uber cash for payment. The interface of Grubhub is easy to use for both the drivers and the customers but they don’t have the option for Uber cash. 
Customer ServiceUber Eats offers customer service via every means including the app, emails, phone calls, and social media. Grubhub has a toll-free number for customer support and live chat is available around the clock. 
TransparencyUber Eats is very transparent about the payment and the working of the platform. Grubhub is comparatively less transparent than Uber Eats. 

What is Uber Eats?

Uber Eats initially started in the United States but after receiving a huge positive response from the people of the USA, they planned to expand overseas. After two years the company was founded, Uber Eats started business in Paris and London. The European market started growing very rapidly for Uber Eats and the company expanded to Ireland and UK as well. So, the company also decided to increase the workforce by three times in the European market. 

Uber Eats charged a fixed delivery fee when the app was started but in 2018 it changed the policies and started charging based on distance. As it expanded to several other countries, Uber Eats wanted to cease operations in South Korea because of too much competition in the market. In the last few years, Uber Eats has launched many new features for the benefit of both customers and drivers. For example, drivers can earn extra money during busy hours whereas customers can order ahead of time and then dine-in at the restaurants. 

Though Uber Eats has a lot of features and increases the visibility of many small restaurant chains as well. But due to the high service fee and a monthly commission, many hotels and restaurants give it a second thought. 

What is Grubhub?

The founders of Grubhub wanted to replace the paper menus and their online food delivery business idea became the winner of the University of Chicago Booth School of Business’s Edward L. Kaplan New Venture Challenge. Grubhub started landing many big investors only after a couple of years of launch. From raising $1.1 million in Series A funding, the company was able to raise $50 million in Series E funding. Some of the brands in Grubhub’s portfolio include LevelUp, Tapingo, AllMenus, etc.

The interface of the Grubhub app and the entire procedure of ordering and receiving the food is simple on this platform. Users have the liberty to pay either online or in cash. During the pandemic, the company also included a contactless delivery option to minimize the spread of the disease. While ordering from the Grubhub platform, a customer can search with the name of any particular restaurant, any cuisine, etc. The names of the restaurants from where one can order are displayed once you select a location. 

Grubhub charges a minimum delivery fee from the customers but also cuts a percentage from that fee and it is one of the major sources of revenue for the company. Apart from this commission fees and advertisements charges for restaurants are there from where Grubhub makes its money. 

Main Differences Between Uber Eats and Grubhub 

  1. Uber Eats is a comparatively new food delivery platform that was launched in 2014 whereas Grubhub started its business in 2004.
  2. Uber Eats is owned by Uber whereas Grubhub is owned by Just Eat Takeaway.
  3. Uber Eats offers a worldwide food delivery service across 45 countries whereas Grubhub serves exclusively to the states of the United States.
  4. Uber Eats allows their drivers to cash out multiple times in a day whereas Grubhub pays on weekly basis.
  5. Uber Eats is more transparent than Grubhub in terms of payment processing. 

Conclusion

The online food delivery platform charges a specific amount for every order. Uber Eats used to charge 35% of the order’s value as the fee but three years back it reduced the fee to 30%. There are pros and cons of both Uber Eats and Grubhub and in the end, it comes down to our personal choice. But, if our favorite restaurant is not listed in either of them then it is a bummer.

References

  1. https://journals.sagepub.com/doi/full/10.1177/1095796019836750
  2. https://www.emerald.com/insight/content/doi/10.1108/978-1-83982-186-820201010
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