Grubhub+ Is Now Offering A Discount If You Pick Up Your Own Order
When Grubhub+ launched in 2020, the company focused on "generous diner rewards." Combining an expansive restaurant network with the enticement of free food rewards had many people signing up for the monthly membership program. With program revamp, grabbing that order to-go versus delivery can reap savings. According to a July 25 press release, the loyalty subscription program offers users "lower service fees and a 5% credit back on pickup orders." While the specific service fees weren't disclosed, the change reflects consumer demand. Given that the monthly service is $9.99, consumers want to be able to offset that initial spend with other price reductions.
Value is a core driver of the program. By offering additional savings on pickup orders combined with the return to the office, users might be willing to grab that lunch order as a break from their desk or swing by a restaurant on the way home from work. Cost continues to be a hot topic in the food world. When a brand can offer value and savings, the program can maintain its loyal users.
In addition to the pickup discount, the retooled Grubhub+ will include Fuel Rewards at Shell, milestone rewards, and other loyalty benefits. These offers come after the brand continued its Amazon Prime partnership and launched a collaboration with Hilton Hotels. Finding ways to give the consumer more for the purchase is key to their competitive strategy. Getting its app front and center ensures that it will be the preferred choice when that need arises.
Grubhub responds to consumer's demand for reciprocity
Some people might recall the days where pizza and Chinese food were the only food delivery options. But today's marketplace has many companies delivering dinner, groceries, and other items at the push of a button. To become the preferred choice, consumers need to appreciate the service's value, and Grubhub is leaning into that reciprocity demand.
Launika Raykar, VP of loyalty, customer engagement and partnerships for Grubhub, told Restaurant Business that reward and recognition is key to the Grubhub+ program. While she believes that a company could never overinvest in this area, the concept needs to adapt to how, why, and why a consumer uses the service. While some restaurant reward programs lean into the surprise and delight concept, Grubhub goes beyond the one time offer. From reduced service fees to built-in discounts, the user sees the value on their bottom line. Every time the total is lessened, they feel better about paying that monthly service cost.
Across the delivery landscape, the main three players, Grubhub, Uber Eats, and DoorDash continually retool their programs to enhance consumer retention. Whether it is a discount, free food offer, or personalized programs, the consumer needs to connect with the company. Otherwise, there is no loyalty. The Grubhub+ relaunch creates expectation of more bang for that buck — as long as people are willing to make the initial spend.