Grubhub is getting into the subscription game, following in the footsteps of competitors like DoorDash and Postmates. For $9.99 a month, the new food delivery subscription service, Gruhub+, offers subscribers free delivery from participating restaurants and 10% cashback for every $100 spent in a customer’s first 30 days. In addition, subscribers get the option to donate their change to No Kid Hungry, and Grubhub will match donations. Grubhub also offers an elite care team to provide real-time support to customers and access to exclusive rewards and experiences.
Grubhub is particularly interested in persuading subscribers of other food delivery services to try Grubhub+. In fact, with proof of a food delivery subscription service, new subscribers can get one month free. They just need to provide their email address and upload a screenshot of their subscription. Grubhub is, however, limiting the number of “one month free” offers it provides to subscribers who switch from competitors. According to the promotion, subscribers should “expect high demand,” and participation is available on a first come, first served basis, which is determined by Grubhub.
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Here is a peek at what Grubhub is promising subscribers:
The cashback reward isn’t actually cash back, rather it is a $10 Grubhub credit for every $100 spent on eligible orders in a 30-day period. Credits expire in 90 days if additional Grubhub+ rewards have not been earned within 90 days of the most recent award. The terms and conditions stipulate that additional fees may apply; they also include other fine print subscribers might want to check out before committing.
As food delivery services like Uber Eats and DoorDash become more popular, the services are trying to grow customer loyalty by offering subscriptions which include free delivery and other perks. Postmates launched their free food delivery subscription first in March 2016. Four years later, the service is alive and well as Postmates Unlimited. For $9.99 a month, or $99.99 a year, Postmates Unlimited subscribers get free delivery on every order over $12. Subscribers also get special members-only offers and access to exclusive getaways and events.
In August 2018, DoorDash launched DashPass, a subscription service that offered free delivery on orders of $15 or more for $9.99 a month. DoorDash said that, during testing, the average subscriber saved about $20 a month, after the monthly subscription fee. DoorDash still offers the DashPass subscription program, but they have lowered their delivery order minimum to $12.
In May 2019, Uber Eats began testing Uber Eats Pass, a subscription service for $9.99 a month. Eats Pass subscribers get $0 delivery and 5% off orders over $15 on deliveries in the subscriber’s city. This program appears to still be in the testing phase, as there is not a lot of information available about it on Uber.com, except for in the FAQs. Additional terms and conditions are available for “renewable passes” which is vague enough that it could apply to any of Uber’s subscription services.
Grubhub is a little late to the party. Their free food delivery subscription service matches what their competitors are offering with two exceptions. The other services aren’t matching donations when subscribers donate their change, nor are they offering cashback on purchases. This promotional offer is likely to attract new subscribers. The free month promo available to subscribers of competitors is also a powerful incentive. Grubhub will need to execute their subscription program well and attract both subscribers and restaurants to be successful.