Like every delivery service has been saying all year, rapid market expansion is key for the services who will be successful in this space. In the race to be the one to offer the best deal to everybody, Grubhub claims it's the one to beat right now.
Will delivery "save" Subway? No. But since delivery is becoming a mission critical part of a restaurant's operational strategy, the chain is smart to roll it out in a big way.
Grubhub wants to move beyond delivery through its LevelUp partnership and other partnerships with fast-food chains. Making life easier for restaurateurs through point-of-sale integrations that are easy to use, though, will help it differentiate from its competitors among its restaurant partners.
The deal, which just closed, provides some insight into both Grubhub and LevelUp’s businesses, but it says even more about the future of restaurant technology.
The tech-fueled delivery business is so much more than just delivery. Stakes are high as companies vie for contracts, exclusive agreements, and market share while at the same time racing to build out infrastructure and coverage across the country and around the world.
This decision comes as no surprise. Unlike Seamless, Eat24 didn't have the same brand identity with its core customers. If there's no potential customer blowback, it makes more sense to convert those users over to Grubhub.
Instead of bowing out under pressure from national competition, local food delivery services in smaller markets across the U.S. are seeing sales lifts and renewed restaurant partnerships as Grubhub and Uber Eats show up on their scene.