As Grubhub struggles to stay competitive with its food delivery rivals DoorDash and UberEats, the Chicago-based company is launching a rewards-based membership program to incentivize people to use its service when ordering meals.
Called Grubhub+, the program costs $9.99 per month and gives members unlimited free delivery, 10 percent cashback and donation matching to charities. Additionally, members can enjoy exclusive access to new perks, local events and other types of experiences.
Grubhub+ is an extension of the company’s Perks program, which gives exclusive deals and savings for free. Grubhub said that in 2019, more than $200 million worth of rewards were redeemed by diners.
To attract new customers to Grubhub+, the company is running a free 14-day trial, and for any diners that use other food delivery services, Grubhub will extend the trial to 30 days.
"Whether they're trying us out for the first time or order many times a week, diners already love our exclusive Perks," said Sam Hall, Grubhub's chief product officer, in a statement. "Now with Grubhub+, we're excited to dramatically expand rewards while doubling our charitable impact and assisting with our elite support teams. We've pulled out all the stops for this program."
Besides launching a new membership program, Grubhub has also been doubling down on virtual restaurants in Chicago, a kitchen-only concept that allows patrons to order food for delivery. The first local virtual restaurant, a Whole 30 eatery, opened in 2019, followed by a Bon Appétit one in September. And just in January, Grubhub opened Padma’s Curry Leaf, which serves authentic Indian cuisine.
Founded in 2004, Grubhub went public in 2014 and is one of just a handful of VC-backed startups to IPO in Chicago in recent years. The company says that there are more than 300,000 restaurants available on its platform across 3,200 U.S. cities and London. Its stock was slightly down Wednesday morning, trading at about $50.
