You are hungry, but you are too busy to go outside and order a meal. Or maybe you are just too reluctant to leave the comfort of your home. So, what is the solution? Thanks to the advancement of modern technologies, it is now very possible for you to order your meal through your smartphone. By using a food takeout service, you don’t need to step your feet outside. They will bring the order to you. Very convenient, isn’t it? Such service also greatly helps restaurant owners to attract a wider range of customers and reach people they otherwise would not be able to.
Right now, there are two heavily popular food ordering services. They are Yelp Eat24 and GrubHub. Well, as a matter of fact, GrubHub is the dominating power in the competition right now. It holds at least 20% of the market share. On the other hand, Yelp Eat24 is a relatively new player, but has quickly attracted lots of attention to become a notable contender. So, how do Yelp Eat24 and GrubHub compare against each other? As a restaurant owner, should you sign up on Yelp Eat24 or GrubHub? Find the answers to your questions below!
GrubHub is an online food ordering service which connects diners to local restaurants. The company is based in Chicago, Illinois, US. It was founded by Matthew Maloney and Michael Evans in 2004. However, GrubHub merged with Seamless in 2013. The combined force is still called GrubHub, and they went public for trades on the New York Stock Exchange in 2014. GrubHub is widely considered as one of the most established online food ordering services. GrubHub boasts over than 8.75 million active diners who are ordering in at leat 1,100 cities from more than 50,000 restaurants in the United States and the United Kingdom. Currently, GrubHub processes over than 211,000 orders per each day.
About Yelp Eat24
On the other hand, Eat24 is an online web-based food and delivery service which partners with local restaurants to allow diners order easily without having to come physically. It was founded by Haim E. and Nadav S. in March 2008. The headquarter is located in San Francisco, California, US. However, it was acquired by Yelp in February 2015, thus is now commonly referred as Yelp Eat24. Yelp Eat24 offers many services for its customers. Its apps are available for Android, Kindle, iPhone, iPad, and Google Chrome. So far, it already features over than 30,000 restaurants in 1,500 cities, with over than 130 million monthly visitors.
How They Work
GrubHub’s success is mainly driven by providing a smooth and reliable customer experience on both sides of each transaction. For the restaurant clients, GrubHub becomes an online ordering platform that greatly increases the restaurant’s reach to customers. GrubHub also increases the efficiency of the order processing. Meanwhile, for the diner clients, GrubHub offers the service to bring a fully cooked meal to their doorsteps within one hour after ordering. By using the special GrubHub app, the diner clients can track their orders.
Yelp purchased Eat24, along with some other services, in order to further monetize their existing asset, which is the millions of restaurant reviews on their website. By purchasing Eat24, Yelp can now add a widget on a reviewed restaurant for online ordering and delivery. So, the users can make an order through multiple means: via mobile app or via Yelp’s restaurant review website. If you want to try new menus, browsing through Yelp’s restaurant review website can be fun. You can try new restaurants and new menus here, and you can make an order at a restaurant right away through the special widget.
Delivering The Food
Both Yelp Eat24 and GrubHub claim that they can deliver your order in an hour or less since the transaction. That is a fairly good timing. Waiting for an hour can be pretty long, but we cannot complain if the traffic is crowded. Still, late delivery is the biggest complaint and the most annoying mistake that a food delivery service can make. Therefore, setting up a good delivery mechanism is very important. Yelp Eat24, for the delivery, relies on the restaurant’s own driver (if there is any) and also on a third-party service. On the other hand, GrubHub actually operates in pretty much the same way. However, GrubHub has also experimented for some time now by using its own drivers in certain cities. By using its own drivers, GrubHub wants to make sure that no delivery is going to be late. So, GrubHub may have the better edge than Yelp Eat24 in terms of delivery. For a relatively new restaurant that does not have any delivery service yet, GrubHub’s drivers are indeed a beneficial help.
Obviously, such services would charge fees in order to continue operating. The fees can be charged on the restaurant side, on the diner side, or both.
GrubHub has been praised by many diners because it does not apply any charge to the diner’s side. However, the restaurant can apply a small delivery charge to the diner. On the other side, GrubHub applies a charge on the restaurant’s side for every order. The charge begins at 10% of the food bill. However, after several months of you increasing your sales, the charge is heightened to 15% of the food bill. The increase has been complained by many restaurant owners. But, if you manage to reach and develop many loyal customers, it is worth the price.
Yelp Eat24 also only applies a charge to the restaurant’s side. The fee is about 12.5% of the food bill of each order.
|- The fee is 12.5% of the food bill||- The fee is 10-15% of the food bill|
|- At least 8.75 million active diners||- At least 130 million monthly visitors|
|- Uses the restaurant’s own driver or a third-party service for delivery||- Has its own drivers in certain cities|
|- Integrated with the Yelp restaurant review website||- Considered as one of the most established food ordering service|
Both Yelp Eat24 and GrubHub are popular food ordering services. GrubHub has more restaurants, but Yelp Eat24 has more monthly users. The fee charged on Yelp Eat24 is slightly lower than that of GrubHub. For a restaurant owner, Yelp Eat24’s service looks more promising. Besides the advantages of the higher number of monthly users and the lower fee, it also gives your restaurant a chance to be more exposed by getting reviewed by Yelp. But, if you don’t have your own driver yet, you can benefit from GrubHub’s delivery drivers.