Grubhub Vs. DoorDash Vs. Uber Eats

There are many tech companies that offer an on-demand team of drivers who can pick up and deliver food for your restaurant – plus marketing and more through an app or website. Grubhub, DoorDash, and Uber Eats are three popular options. They each charge various fees to both customers and restaurant owners to be listed on their apps and to use their drivers. The best option for restaurants depends on factors such as the platform’s coverage in the area and their costs.

Budget Branders works with independently owned and operated restaurants throughout the United States to help them expand their marketing reach for pennies on the dollar. With our custom plastic cups, custom wax deli paper, custom napkins, custom deli containers, and other promotional products, you can get your business’ name and logo before more people – without spending a ton of money. Contact our branding team today to learn more about our great products and fair prices.

Grubhub started offering food delivery for restaurants that did not have their own delivery service in 2014. This service is now a core part of its business. It has approximately 20 million active users and is associated with over 115,000 restaurants in the United States.

Customers pay fees for delivery, which vary by restaurant. Most restaurants specify a minimum order amount, such as $15. Customers can also purchase a GrubHub+ subscription for $9.99 per month, which gives them $0 delivery fees and lower service fees at certain merchants, plus 5% back in credits on eligible pickup orders.

Grubhub works with both large chain restaurants as well as independently owned and operated cafes, diners, and more.  There are a lot of benefits to restaurants that choose to work with the company – such as the ability to take advantage of its large network and its marketing capabilities.

However, these perks come with a price. Fees for restaurants include:

• A 5 to 20% marketing commission for orders placed through the Grubhub app or through Grubhub.com
• Order processing fees to cover credit card processing and fraud monitoring
• 10% delivery fee for all orders that are delivered.

Grubhub does offer a profit calculator on its website to help determine how its fees will affect your bottom line. Restaurants should carefully consider whether these fees are worth the potential for expanded business by offering delivery and having their menu available for delivery through Grubhub.

DoorDash operates throughout the United States in approximately 4,000 cities. It also operates in Australia, Japan, Germany, Canada, and New Zealand. It has a number of related companies, including the upscale food delivery service Caviar, Scotty Labs, Chowbotics, and Wolt.

Like Grubhub, DoorDash charges customers service and delivery fees. Its subscription option – DashPass – costs $9.99 a month and can reduce or eliminate these fees for patrons. DoorDash does not require a minimum order.

For restaurants, DoorDash offers different plans to cover advertising and marketing, pay for drivers, insurance, customer service and support, and technology platform costs. Its most popular partnership plans include:

• Marketplace: customers find restaurants on the DoorDash app or website, while the restaurant manages incoming orders and DoorDash facilitates deliveries. Restaurant owners are charged a commission for each order that ranges from 15% to 30%. They are not charged credit card processing fees.
• Storefront: DoorDash’s online ordering system can be used with a restaurant’s website. There are no monthly or commission fees, but restaurants pay for credit card processing fees.
• Drive: for restaurants that have their own online ordering system, this option allows them to utilize DoorDash drivers. Restaurants pay a flat delivery fee per delivery but are not charged any monthly fees or credit card processing fees.

As part of Uber, Uber Eats has a broad reach. It is available in more than 500 cities in 24 countries. This makes it a great option for not just Americans, but anyone living or traveling abroad.

UberEats charges customers a fee of 15% of the order subtotal. There is no minimum order for patrons, but customers may be charged an additional $2 to $3 fee for orders under $10 to $15. 

Its subscription option, Uber One, costs $9.99 per month. For this price, members receive a $0 delivery fee for restaurants and stores plus up to 10% off of eligible orders. Members can also take advantage of member pricing on eligible rides through Uber.

For restaurants, Uber Eats’ fees can get pricey. They include the following:

• Lite: a restaurant is discoverable in the Uber Eats app, for a cost of 15% fee for delivery orders and a 6% fee for pickup orders.
• Plus: a restaurant is discoverable in the app, plus customers can use their Uber One benefits with your business. This costs a 25% fee for delivery orders and a 6% fee for pickup orders.
• Premium: the same benefits as the Plus plan, along with no fees for the first 6 months for any month where a restaurant does not get at least 20 orders and matching ad spending up to $100 per month. This option costs a 30% fee for delivery orders and a 6% fee for pickup orders.
• Self-delivery: if a restaurant has its own delivery drivers, it can get listed on the app and have certain Uber One benefits apply. Restaurants pay a 15% fee for all self-delivery orders and a 6% fee for pickup orders. If they use Uber’s drivers when their own drivers are unavailable, the fee will go up to 25%.

Many restaurant owners will balk at the high fees charged by services like Grubhub, DoorDash, and Uber Eats. However, it may be necessary to be listed with a delivery platform to reach more customers in your area. These apps are often the first place that many people look when they want takeout, so you might be missing out on business if your restaurant isn’t listed there.

Before you take the plunge, it is important to think carefully about the benefits and drawbacks of doing so. Consider:

• The fees charged per order, plus any other commissions or fees that the app may charge. If your profit margin is 30% and service fees are 25% or more, it may not make good financial sense to be on one of these platforms.
• The number of drivers that a company has in your area. Some platforms are simply more widely used in certain areas, which means that they typically have more drivers available. If an app doesn’t have enough people to get your food to customers quickly, then it may not be worth the high costs.
• The reputation of the delivery service in your area. Is this particular service known for long wait times for deliveries or problems with deliveries? How does the company handle customer complaints?
• The type of contract that you may be required to sign. You may not want to commit to a particular service for an extended period of time. You should review any contract carefully not just for the length of time, but any additional terms and hidden fees.
• The fees charged to customers. If an app charges steep fees for patrons, then you may not see any increase in business. Consider your typical diner and whether or not they are likely to pay an extra 10 or 15% for the convenience of having their food delivered.

Ultimately, if you want to use a third-party delivery platform, Grubhub, Uber Eats, and DoorDash are all solid choices. Your best bet will probably be the company that has the largest presence and is most popular in your city. If you are located in a larger city where all 3 options are prominent, then the final decision may come down to contract terms and pricing structures. 

From our factory in Michigan, Budget Branders designs, prints, and delivers promotional products to small and medium-sized food services businesses across the United States – including food trucks, coffee shops, boba tea stores, diners, brew pubs, and restaurants. We sell a full range of branded disposable products that can be custom-printed to match your branding scheme. Our products include branded paper cups, custom napkins, custom ice cream cups, custom soup cups, branded paper bags, and custom sandwich bags.  If you want to up your marketing game, using these products for deliveries will be key.

If you’d like to learn more about our full line of disposable products, we’re available to talk. Fill out our online contact form or hit the live chat button to get started.