White Castle Partners With Grubhub as Delivery Moves Toward Exclusivity


Skift Take

The next big competition in online delivery might be for exclusivity with large, national chains.

As the delivery market grows and third-party delivery services take off, national fast food chains are increasingly looking to the existing delivery players to perform delivery operations. According to a 2016 study by McKinsey worldwide food delivery is a nearly $100 billion market. In the U.S., according to a 2017 Morgan Stanley report, just over half of all delivery orders are placed via digital channels, with 18 percent placed through a third-party delivery service's website or app. (The other half of digital orders come via a restaurant's website or app, though those are often powered by one of the third-party companies.) White Castle is the latest fast food chain to offer delivery through a partnership with Grubhub, announced today. About 80 of White Castle’s 450 restaurants offer delivery now, with another 45 scheduled to come by the end of the month. “We’re generally very excited about all the restaurants on our marketplace and when we’re able to find a beloved brand like White Castle that’s been around for a long time, still family-owned and operated, we love that story, and we love them being on the platform,” Grubhub chief operating officer, Stan Chia, told Skift Table. “Grubhub has been as passion