Grubhub Eliminates Delivery Fees on Orders Over $50 in Strategic Market Play
Grubhub has announced a significant strategic initiative aimed at narrowing the competitive gap with market leaders DoorDash and Uber Eats. The company revealed on Monday that it will permanently waive all delivery and service fees for restaurant orders exceeding $50, marking a notable shift in the food delivery platform's pricing strategy.
This policy change represents a substantial value proposition for end users, as delivery and service fees on orders over $50 typically average approximately $13 per transaction across major food delivery platforms. The company positions this move as a customer-centric response to current economic pressures, aiming to deliver tangible cost savings to its user base.
Competitive Differentiation
Grubhub's permanent fee elimination distinguishes itself from competitor offerings in several key ways:
• DoorDash and Uber Eats do not offer permanent fee waivers on large orders• Competing platforms typically provide limited-time promotional offers
• Alternative fee reduction programs are generally tied to paid subscription services (DashPass, Uber One)
• Competitor promotions often include restaurant restrictions and other limitations
Market Position and User Metrics
The strategic initiative comes amid challenging growth metrics for the platform. Following its acquisition by Marc Lore's Wonder Group in 2024, Grubhub has experienced headwinds in user acquisition and retention. According to marketing intelligence firm Sensor Tower, the platform's monthly active users declined by 20% year-over-year in 2025, reaching 8 million users. This contrasts sharply with DoorDash's reported user base of nearly 50 million monthly active users.
Ecosystem Expansion Strategy
Beyond the fee elimination policy, Grubhub is pursuing a multi-faceted growth strategy. The company recently acquired Claim, a restaurant rewards startup specializing in cash-back incentive programs. This acquisition enables Grubhub to offer merchants enhanced customer engagement capabilities through personalized rewards programs applicable to both dine-in and pickup orders, expanding the platform's value proposition beyond traditional delivery services.
The combination of aggressive pricing strategy and ecosystem expansion through strategic acquisitions signals Grubhub's commitment to regaining market share in the highly competitive food delivery sector.
