The food delivery market in the United States has seen significant growth in recent years, with the COVID-19 pandemic leading to an even greater increase in demand for delivery services.
Among the leading players in this market are Grubhub and UberEats, both of which offer convenient and reliable options for ordering food and other items for delivery.
While these two services may appear similar at first glance, there are actually several differences between them.
In this article, we will take an in-depth look at Grubhub and UberEats, comparing and contrasting their features, services, and strengths to help you decide which is the better choice for your needs.
History of Grubhub
Grubhub was founded in 2004 as an online platform for ordering food from local restaurants. Initially serving only a few cities, the company quickly expanded and became one of the leading food delivery services in the United States.
In 2020, Grubhub was acquired by Just Eat Takeaway, a global leader in the food delivery industry, for $7.3 billion. This acquisition aimed to create the largest food delivery firm outside of China, combining Just Eat Takeaway’s global presence with Grubhub’s strong brand and market share in the US.
Currently, Grubhub operates in the United States and Canada, partnering with over 300,000 restaurants to offer a wide range of food options for delivery. The company’s app allows users to easily browse and order from their favorite restaurants, with the option to track their order in real time and rate their delivery experience.
Grubhub’s focus on food delivery sets it apart from some of its competitors, making it a popular choice for those looking specifically for this type of service.
History of UberEats
UberEats was launched in 2014 as a standalone app for food delivery, building on the success of the ride-hailing company Uber. Initially starting in a few select cities, UberEats quickly expanded its reach and became a major player in the food delivery market.
In 2021, the company merged with Postmates, another leading delivery service, solidifying its position as the second largest delivery service in the United States.
UberEats currently operates in over 41 countries, offering a wide range of delivery options beyond just food. In addition to ordering from local restaurants, users can also choose to have groceries, pet supplies, and more delivered to their doorstep through the app.
While UberEats is known primarily for its food delivery options, the company’s global presence and diverse range of services make it a popular choice for those looking for more than just a way to have meals delivered.
Differences between Grubhub and UberEats
While Grubhub and UberEats both offer food delivery services, there are several key differences between the two companies. Here are some of the main ways in which Grubhub and UberEats differ:
- Geographical coverage: Grubhub only operates in the United States and Canada, while UberEats serves consumers in over 41 countries around the world. This means that UberEats may be the better choice for those looking to order from a wider range of restaurants or for those who are traveling and need a delivery service in a new city.
- Scope of services: Grubhub is focused solely on food delivery, while UberEats offers a range of delivery options beyond just food. This means that UberEats may be the better choice for those looking to have items other than just meals delivered, such as groceries or pet supplies.
- Market share: In terms of market share, Grubhub has a 17% share in the United States, while UberEats (including Postmates) holds a 27% share. This means that UberEats is currently the more popular choice among consumers, though Grubhub is still a significant player in the market.
Similarities between Grubhub and UberEats
Despite the differences between Grubhub and UberEats, there are also several similarities between the two companies. Here are some key ways in which Grubhub and UberEats are similar:
- Partnership with major restaurant chains: Both Grubhub and UberEats have partnerships with a variety of local and national restaurant chains, giving users a wide range of options to choose from. Some of the major brands that are available on both platforms include McDonald’s, Starbucks, and Chick-fil-A.
- Delivery fees: Both Grubhub and UberEats charge fees for their delivery services, with the cost depending on the distance of the delivery and other factors. In addition, both companies offer express delivery options for an additional fee, which can be a convenient choice for those who need their order delivered more quickly.
- Loyalty programs: Both Grubhub and UberEats offer loyalty programs for their most frequent users, providing perks such as free delivery from eligible restaurants and discounts on orders. These programs can be a great way for users to save money on their deliveries and get rewarded for their loyalty to the platform.
Strengths of Grubhub
While Grubhub and UberEats both offer a convenient and reliable way to have food and other items delivered, there are certain strengths that set Grubhub apart from its competitor. Here are some key advantages of using Grubhub:
- Loyalty program: Grubhub offers a loyalty program called Grubhub+ which provides perks such as free delivery from eligible restaurants and discounts on orders to frequent users. This can be a great way to save money on deliveries and get rewarded for your loyalty to the platform.
- Focus on food delivery: As a company that is solely focused on food delivery, Grubhub has the ability to offer a wide range of options and features specifically geared towards this type of service. This may be a key advantage for those who are primarily interested in having meals delivered and are not as concerned with other types of items.
- Wide range of restaurant options: With over 300,000 restaurant partners, Grubhub offers a diverse range of options for users to choose from. This can be particularly useful for those who are looking for a specific type of cuisine or want to order from a particular restaurant that may not be available on other platforms.
Strengths of UberEats
In addition to Grubhub’s strengths, there are also several key advantages to using UberEats for your delivery needs. Here are some of the top strengths of UberEats:
- Global reach: With operations in over 41 countries, UberEats offers a wider range of options for those looking to order from a wider variety of restaurants or for those who are traveling and need a delivery service in a new city.
- Diverse range of services: In addition to food delivery, UberEats also offers a range of other delivery options including groceries, pet supplies, and more. This makes it a great choice for those who are looking for more than just a way to have meals delivered.
- Membership program: UberEats is part of the larger Uber platform, which means that users have the option to sign up for a membership program called Uber One. This program offers benefits on all of Uber’s platforms, including free delivery from eligible restaurants on UberEats orders. This can be a great way to save money on deliveries and get additional perks on other Uber services.
Final Thoughts On Grubhub vs Uber Eats
Both Grubhub and UberEats offer convenient and reliable options for having food and other items delivered to your doorstep.
While the two companies have some differences in terms of their geographical coverage, range of services, and market share, they also have several similarities including partnerships with major restaurant chains and delivery fees.
Ultimately, the best choice for you will depend on your specific needs and preferences. Factors to consider when deciding between Grubhub and UberEats may include the costs and fees for delivery, loyalty programs and perks, and the specific services and options offered by each company.
By weighing these factors and considering your own needs, you can choose the delivery service that is the best fit for you.