![]() ![]() Additionally, charging no upfront fee was critical to reduce barriers to adoption by restaurants. Direct marketing was used to generate initial density required to attract users to the platform. In the individual customer model, both businesses started with a small geographical footprint which allowed for faster sign-ups from restaurant owners at lower cost. Grubhub’s model evolved with a larger focus on the individual customer. To scale, Seamless originally targeted corporate clientele, understanding that the costs to acquire and market these services per individual customer would be significantly lower, and the benefit significantly higher given its concentration. While fees vary by location, in general, Grubhub charges the restaurant approximately 15% of the total cost of any given order while charging the diner at most a nominal delivery fee. For restaurants, Grubhub offers access to a high volume of high-margin orders without requiring seat expansion or significant additions to staff. Today, Grubhub offers diners an online and mobile ordering platform that connects them with thousands of local restaurants. Though combined as of 2013, both businesses successfully executed the build-out of strong platforms, with Seamless beginning as a corporate-focused NY-based platform in 1999 and GrubHub beginning as a diner-focused Chicago-based platform in 2004. ![]() Grubhub and Seamless have transformed the take-out and delivery markets across major metropolitan areas, creating a massive and highly profitable two-sided platform, linking hungry diners with independent restaurants.
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