Grubhub Eliminates Delivery & Fees on Orders Over $50: A Game Changer in the Food Delivery Wars?
The food delivery landscape is heating up, and Grubhub is making a significant play to regain market share. In a bold move announced on Monday, Grubhub unveiled a new, permanent policy: all delivery and service fees will be eliminated for restaurant orders exceeding $50. This initiative, coupled with a star-studded Super Bowl 2026 commercial featuring George Clooney, signals a clear strategy to attract cost-conscious consumers and challenge industry leaders DoorDash and Uber Eats. But is this enough to turn the tide? This article dives deep into the implications of Grubhub’s new offering, analyzing its potential impact on consumers, competitors, and the future of food delivery.
Grubhub’s New Strategy: “Grubhub Eats the Fees”
The core of Grubhub’s new strategy is simple: eliminate a major pain point for customers – the often-unexpected and substantial fees tacked onto online food orders. The Super Bowl commercial perfectly encapsulates this message. Clooney, hosting an extravagant dinner party, dramatically asks, “Who will eat the fees?” to which he confidently replies, “Grubhub will eat the fees.”
Grubhub emphasizes that this isn’t a limited-time promotion, but a permanent offering designed to provide tangible savings to customers, particularly during periods of economic uncertainty. The company estimates that delivery and service fees on orders over $50 typically average around $13 per transaction across major food delivery platforms. Eliminating these fees could represent a significant cost reduction for families and groups ordering together.
How Does Grubhub’s Offer Compare to the Competition?
What sets Grubhub’s move apart is its permanence. Unlike DoorDash and Uber Eats, which frequently offer fee waivers, these are usually tied to specific conditions:
- Limited-Time Promotions: DoorDash and Uber Eats often run promotions with waived fees, but these are typically short-lived and require constant monitoring.
- Subscription Services: Both platforms offer paid subscription services (DashPass and Uber One) that include fee waivers, but these subscriptions come with a monthly cost and may not apply to all restaurants.
- Restaurant Restrictions: Promotions are often limited to select restaurants, reducing their overall value to consumers.
This consistent, fee-free experience for orders over $50 positions Grubhub as a potentially more predictable and budget-friendly option for larger orders. However, the success of this strategy hinges on whether consumers perceive the value proposition as significant enough to switch platforms.
Grubhub’s Struggle for Growth and the Wonder Group Acquisition
Grubhub’s aggressive move comes at a critical juncture. The company has been facing challenges in attracting and retaining users, lagging behind its larger competitors. According to marketing intelligence firm Sensor Tower, Grubhub’s monthly active users (MAUs) declined by 20% year-over-year in 2025, dropping to 8 million. In stark contrast, DoorDash currently boasts nearly 50 million MAUs.
This decline in user growth prompted the acquisition of Grubhub by Marc Lore’s Wonder Group in 2024. Lore, known for his e-commerce expertise, is aiming to revitalize Grubhub and position it as a strong contender in the food delivery market. The fee elimination policy is a key component of this turnaround strategy.
The Impact of the Wonder Group Acquisition
Wonder Group’s acquisition of Grubhub signaled a shift in focus towards innovation and customer experience. Lore’s vision extends beyond simply delivering food; he aims to create a comprehensive platform that caters to all aspects of the dining experience. This includes:
- Investing in Technology: Improving the app’s user interface, delivery logistics, and restaurant partnerships.
- Expanding Service Offerings: Exploring new services like grocery delivery and meal kits.
- Focusing on Restaurant Partnerships: Strengthening relationships with local restaurants and providing them with tools to grow their businesses.
Beyond Fees: Grubhub’s Acquisition of Claim
Grubhub isn’t solely relying on fee elimination to boost its appeal. The recent acquisition of Claim, a startup specializing in cash-back rewards at local restaurants, demonstrates a commitment to enhancing customer loyalty and supporting local businesses. Claim allows customers to earn cash-back rewards on dine-in or pickup orders, which can be redeemed at participating restaurants.
This acquisition aligns with Grubhub’s broader strategy of fostering stronger relationships with restaurants and providing them with tools to engage customers. By integrating Claim’s rewards program, Grubhub aims to:
- Drive Traffic to Restaurants: Incentivize customers to dine in or pick up orders, reducing reliance on delivery.
- Increase Customer Loyalty: Reward frequent diners and encourage repeat business.
- Provide Personalized Rewards: Offer tailored rewards based on customer preferences and dining habits.
The Future of Food Delivery: Trends and Predictions
Grubhub’s move is occurring within a rapidly evolving food delivery landscape. Several key trends are shaping the industry:
The Rise of Quick Commerce (Q-Commerce)
Q-commerce, or quick commerce, focuses on delivering groceries and everyday essentials in under 30 minutes. Companies like Gorillas and Getir are leading this trend, challenging traditional grocery delivery services. This trend is forcing established players like Grubhub to consider expanding their offerings beyond restaurant meals.
The Growth of Ghost Kitchens
Ghost kitchens, also known as virtual kitchens, are commercial cooking facilities that prepare food solely for delivery. These kitchens allow restaurants to expand their reach without the overhead costs of a traditional brick-and-mortar location. Grubhub is actively partnering with ghost kitchens to offer a wider variety of cuisines to its customers.
Increased Focus on Sustainability
Consumers are increasingly concerned about the environmental impact of food delivery. Companies are responding by implementing sustainable practices such as using eco-friendly packaging, optimizing delivery routes to reduce emissions, and offering carbon-neutral delivery options. A recent study by the Environmental Protection Agency (EPA) estimates that food delivery contributes to approximately 2% of total transportation emissions.
The Integration of AI and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are being used to optimize delivery routes, predict demand, personalize recommendations, and improve customer service. Grubhub is leveraging AI to enhance its delivery efficiency and provide a more tailored experience for its users.
Will Grubhub’s Strategy Pay Off?
Grubhub’s decision to eliminate delivery and service fees on orders over $50 is a bold and potentially game-changing move. However, its success will depend on several factors:
- Consumer Adoption: Will enough customers switch to Grubhub to take advantage of the fee-free offering?
- Restaurant Partnerships: Can Grubhub maintain strong relationships with restaurants while absorbing the cost of the waived fees?
- Competitive Response: How will DoorDash and Uber Eats respond to Grubhub’s move? Will they match the offer or introduce their own incentives?
- Wonder Group’s Execution: Can Marc Lore and his team successfully execute their turnaround strategy and revitalize the Grubhub brand?
The food delivery wars are far from over. Grubhub’s new strategy represents a significant challenge to the industry leaders, and the coming months will be crucial in determining whether it can regain its footing and secure a sustainable future. The elimination of fees is a strong opening gambit, but sustained innovation and a relentless focus on customer experience will be essential for long-term success. Keep an eye on GearTech for further updates and analysis of the evolving food delivery landscape.