As an avid user of food delivery apps and a savvy consumer, I‘m always looking for ways to save money and get the most bang for my buck. So when Grubhub, one of the leading third-party delivery platforms, introduced its Grubhub+ subscription service, I was intrigued. Could paying a monthly fee actually help me cut costs on my takeout habit? I dug into the details to find out.
In this in-depth guide, I‘ll share everything you need to know about Grubhub+. We‘ll cover exactly what the subscription includes, how much it costs, and how to determine if it‘s a good fit for your lifestyle and budget. Plus, I‘ll provide some expert tips on maximizing the benefits and avoiding potential pitfalls. Let‘s get started!
What Is Grubhub Plus?
Launched in 2020, Grubhub+ is a premium subscription service offered by Grubhub, a major player in the U.S. food delivery market. As of 2022, Grubhub partners with over 320,000 restaurants in more than 4,000 cities across the country. The company processed an average of 622,700 daily orders in 2020 from its 31.4 million active users (source).
The key selling point of a Grubhub+ membership is unlimited free delivery on qualifying orders. When you see the Grubhub+ badge on a restaurant‘s listing in the app, you can order from that establishment without paying the standard delivery fee. However, there are some caveats. Your order subtotal must be at least $12 before tax and tip, and the offer only applies to participating restaurants.
In addition to waived delivery fees, Grubhub+ members get access to exclusive perks. These include a dedicated Elite Care customer service team for faster issue resolution and early access to certain promotions and new app features. Members may also receive invitations to special events and experiences in select markets, such as prix fixe tasting menus or cooking classes.
How Much Does Grubhub+ Cost?
The standard price for a Grubhub+ subscription is $9.99 per month. However, the company frequently offers free trial promotions to encourage signups. As of March 2023, new members can snag a 30-day complimentary trial of Grubhub+. The length of these trial periods can vary – sometimes it‘s just two weeks rather than a full month.
After your free trial wraps up, Grubhub will automatically bill you the $9.99 monthly fee (plus any applicable taxes) until you cancel. If you want to avoid the charge, be sure to set a reminder to reassess the value you‘re getting from the subscription before the trial expires. Grubhub may not give a prorated refund if you cancel partway through a paid month.
It‘s worth noting that Grubhub is currently offering a special promotion for Instacart Express members. As of 2023, Instacart‘s premium subscribers can activate a free year of Grubhub+ by linking their accounts. To snag this deal, you‘ll need to register with the same email on both platforms and accept the offer. Keep in mind that this promotion is set to end sometime in November 2023.
Potential Savings and Perks
The main draw of Grubhub+ is the promise of free delivery, which can add up to substantial savings for frequent users. Delivery fees can vary based on factors like distance and order size, but $3.99 is a common charge. If you typically order in three times a month with a $3.99 delivery fee, you‘re looking at nearly $12 just in fees. In that case, the $9.99 Grubhub+ membership would essentially pay for itself.
Of course, your mileage may vary depending on order frequency and the typical fees in your area. Based on a survey of over 2,000 U.S. adults, around a third of them use third-party food delivery services like Grubhub at least twice a week (source). For those heavy users, a delivery subscription could offer even more significant savings.
Aside from waived delivery fees, Grubhub+ members get some additional perks. The dedicated Elite Care support team can come in clutch if you have an issue with an order and need a speedy resolution. Early access to new features could enhance your ordering experience, and exclusive promotions may help you save even more. If your city is one of the markets with special member events, you could snag a great deal on a unique dining experience.
Grubhub+ has a charitable component as well. If you opt into the Donate the Change program, which rounds up your order total to the nearest dollar and donates the difference, Grubhub will match your contribution. Members can feel good knowing their spare change is having double the impact. However, Grubhub did extend donation matching to all users for part of 2022, so this may not be a totally unique benefit.
Downsides and Limitations
While a Grubhub+ subscription can offer compelling value for the right user, there are some potential drawbacks to keep in mind. Crucially, the membership only waives the delivery fee, not the various other charges that Grubhub tacks onto an order. You‘ll still be responsible for paying any applicable service fees, small order fees for totals under $10, taxes, and optional tips.
This limitation has actually landed Grubhub in some legal hot water. In March 2022, the Attorney General of Washington, D.C. filed a lawsuit against the company, alleging that its Grubhub+ marketing misled consumers to believe the subscription would eliminate more fees than it actually does. In response, Grubhub added disclaimers to clarify that only the delivery fee is waived for Grubhub+ orders.
Another factor to consider is restaurant participation. The Grubhub+ program only applies to orders from partner restaurants, as indicated by the badge on their listing. While plenty of eateries opt in, some popular spots may not be included. If your favorite takeout joint doesn‘t participate, a subscription may not benefit you much. There‘s also the $12 minimum subtotal to keep in mind.
It‘s also worth noting that Grubhub has made some quiet changes to the Grubhub+ offering that could be seen as downsides. When the service first launched, it included a generous promotion for 10% Cashback on your first $100 in orders for the first 30 days. However, Grubhub phased out that perk shortly after introducing it with little fanfare. The combo of guaranteed cash back and free delivery was especially compelling, so some members were irked by its disappearance.
Is Grubhub+ Worth It?
So, is springing for a Grubhub+ subscription the right move for you? As a careful shopper, I believe it depends on your individual ordering habits and preferences. If you‘re a Grubhub power user who frequently hits the $12 minimum at a variety of participating restaurants, it‘s likely a worthwhile investment. On the other hand, if you only order delivery occasionally or tend to patronize spots that don‘t participate, it may not make sense.
To determine if you‘d get value from Grubhub+, I recommend doing some quick math. Look back at your order history and calculate what you typically spend on delivery fees in a month. Make sure to only count fees on orders that would qualify for the Grubhub+ free delivery perk (over $12 and from a partner restaurant). If that figure consistently exceeds the $9.99 subscription price, Grubhub+ will probably save you money in the long run.
However, don‘t forget to consider the other perks and limitations. If you anticipate needing to contact customer service often, the Elite Care team access could be valuable. Are you the type of diner who would jump at the chance to attend exclusive events or try new app features early? If so, those benefits might be worth more to you than the average user. On the flip side, if your favorite restaurants aren‘t Grubhub+ partners or you always keep your orders under $12, the complimentary delivery may not do much for you.
Another factor to weigh is your usage of other food delivery services. Grubhub‘s top competitors, including DoorDash and Uber Eats, offer their own subscription programs. Depending on your ordering patterns and preferences, one of those services may be a better fit. For instance, DoorDash‘s DashPass offers $0 delivery fees and reduced service fees on orders over $12, which could be more compelling if DoorDash has better restaurant coverage in your area.
Personally, I think the safest bet is to take advantage of a free trial offer to test out Grubhub+ (or a competing service) and track your usage. That way, you can make an informed decision about whether a delivery subscription is worth it based on your actual behavior and savings. Just be sure to set a reminder to cancel before you get charged if you ultimately decide it‘s not for you.
Tips to Maximize Your Membership
If you do decide to take the plunge with Grubhub+, there are some strategies you can employ to make the most of your subscription. First and foremost, always look for the Grubhub+ badge when deciding where to order from. It can be easy to get into the habit of scrolling straight to your tried-and-true spots, but branching out to participating restaurants can help you maximize your savings. You can even filter your search results to only show Grubhub+ options.
To help determine whether you‘re actually coming out ahead, I recommend keeping a running tally of how much you‘re saving on waived delivery fees each month. You can then compare that figure to the $9.99 subscription cost to see if you‘re getting your money‘s worth. If you find that you‘re not placing enough qualifying orders to offset the membership fee, don‘t be afraid to cancel.
Another smart move is to take advantage of the Elite Care support perk if you have any issues with your orders or the app. Paying members get priority access to customer service, so you may be able to get your problem resolved faster than non-subscribers. Keep an eye out for any member-exclusive promotions, events, or offers in your area as well. Snagging an extra discount or a spot at a coveted pop-up dinner could significantly increase the value you‘re getting from Grubhub+.
Lastly, consider opting into the Donate the Change program if you want to support important causes with your spare change. Grubhub will match the contributions of Grubhub+ members, so you can stretch your donation even further. Even if you‘re only rounding up by a few cents per order, that impact can add up over time.
The Restaurant Perspective
While Grubhub+ and similar subscription programs can be a boon for frequent delivery customers, it‘s important to consider their impact on restaurants as well. Third-party delivery platforms like Grubhub have been a subject of controversy in the restaurant industry due to their often hefty commissions and fees. Grubhub‘s cut can be as high as 30% of an order subtotal, which can seriously eat into a restaurant‘s already slim margins.
To offset these costs, some restaurants opt to raise their prices on delivery apps. A 2020 report from Kearney found that Grubhub menu prices were an average of 17% higher than in-store prices. In other words, restaurants aren‘t necessarily reaping the full benefit of what you pay for your pad thai or pizza on Grubhub. Part of that markup goes straight to the third-party service.
Despite the financial downsides, partnering with Grubhub and other delivery apps has become practically a necessity for many restaurants. A 2019 survey from the National Restaurant Association found that 70% of responding restaurants offered delivery through a third-party service. The convenience and broad customer reach these platforms offer is hard for many eateries to resist, especially in the wake of the COVID-19 pandemic‘s devastating impact on the industry.
For their part, Grubhub has taken some steps to support restaurants and build goodwill with the industry. In March 2022, the company introduced a "Donate the Fee" promotion that allowed diners to opt in to cover the $0.30 processing fee on their order, with the proceeds going to the restaurant. Grubhub also offered $250 million in relief to restaurants during the height of the pandemic in the form of reduced commissions, free marketing, and other support.
Looking Ahead
The launch and evolution of Grubhub+ reflects the growing popularity of delivery subscription programs in the competitive third-party delivery space. As more consumers rely on the convenience of delivery, companies like Grubhub, DoorDash, and Uber Eats are looking for ways to increase order frequency and inspire loyalty. A monthly subscription fee is a small price to pay if it keeps diners consistently coming back to your platform.
However, Grubhub will need to be mindful of the potential risks and challenges of the subscription model. If too many users sign up for a free trial but don‘t stick around once they have to pay, the company could end up subsidizing a lot of unprofitable deliveries. There‘s also the question of whether Grubhub+ and similar programs will put additional strain on already struggling restaurants by cutting into their margins even more.
To address these concerns and stay competitive, I expect we‘ll see Grubhub and its rivals continue to tweak their subscription offerings. Potential developments could include more customization options, such as choosing your own perks or opting for a lower fee in exchange for fewer benefits. We may see the introduction of guaranteed delivery times for subscribers or rotating promotions to keep things fresh. Tiered memberships with escalating benefits for higher monthly fees are another possibility.
On the restaurant side, I wouldn‘t be surprised if more eateries explore offering their own in-house delivery subscriptions. Cutting out the third-party middleman could help them maintain more control over fees and customer relationships. We may also see a growing number of restaurants opting out of partnerships with certain delivery platforms if they feel the costs outweigh the benefits.
The Bottom Line
So, is Grubhub+ a smart choice for your takeout budget? As with most financial decisions, it depends. If you‘re a frequent Grubhub user who consistently orders over $12 from a variety of participating restaurants, the savings on delivery fees could easily outweigh the $9.99 monthly cost. The added perks like Elite Care support and occasional exclusive offers are a nice cherry on top.
However, if you‘re a more occasional delivery customer or tend to favor restaurants that don‘t participate in Grubhub+, a subscription may not be worthwhile. You‘ll also want to consider your usage of other delivery apps and their competing membership programs. Depending on the options available in your area and your ordering preferences, a service like DoorDash or Uber Eats may be a better fit.
Ultimately, the savviest move is to track your Grubhub ordering habits and crunch the numbers to see if you would actually save money with Grubhub+. Take advantage of a free trial offer to test the waters, but be sure to reassess before the regular $9.99 monthly charges kick in.
If you do decide Grubhub+ is right for you, make sure you‘re maximizing the benefits. Always check for the Grubhub+ badge, keep tabs on your savings, and watch for exclusive promotions and events. By being a proactive and informed consumer, you can ensure you‘re getting the best possible value from your subscription.
