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How Much Does Grubhub Cost In 2021? Pricing, Fees, & More

Last updated: October 6, 2021
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vector graphic showing the grubhub cost somebody might pay for an order

Grubhub is a food delivery service that specializes in takeout and delivery from restaurants near you.

It’s not only one of the most popular delivery apps, with over 12 million people using Grubhub each month, but also one of the cheapest delivery apps.

But how much does Grubhub cost?

The Grubhub price varies depending on how often you order.

It also depends on the restaurant that you are ordering from and where it is located.

As one of the largest restaurant-delivery companies in America, Grubhub has both pros and cons regarding pricing, fees, and more.

Grubhub Cost: Pricing Overview

Grubhub’s pricing is based on delivery and service fees, which make up 70% of the meal price.

  • Grubhub’s delivery fee is the fee charged by the restaurants to deliver food to the customers’ locations.
  • The service fee is the amount Grubhub charges the restaurants for facilitating the order.

In short, a minimum order amount attracts higher service fees.

Grubhub does have a rating system that restaurants can use to take a chance on new customers.

However, this rating is independently rated, and Grubhub does not approve or disapprove of restaurants on its scale.

Why is Grubhub so Expensive?

Grubhub is expensive because restaurants participate in coming up with the rates.

However, these fees are at par with other third-party service providers like Doordash, Uber Eats, Seamless, and Postmates.

Grubhub has no direct control over how much restaurateurs charge for their orders, meaning prices vary widely between menus and locations.

Grubhub takes a percentage of each order from both the customer and the restaurant.

The delivery fee is whatever portion Grubhub receives, usually between $0.99 and $12, but varies depending on location and event promotions.

Some restaurants charge an additional tip to be paid upon arrival, so be aware of this before ordering.

Grubhub has no direct control over how much restaurateurs charge for their orders, meaning prices vary widely between menus and locations.

How Much Does it Cost to Order Grubhub?

There are several components to Grubhub’s pricing.

vector graphic showing the grubhub cost somebody might pay for an order

Grubhub Pricing Formula

Grubhub is one of several companies aiming to reinvent the takeout business.

They serve about 100 cities including San Francisco, Chicago, Philadelphia, Boston, Washington, and New York City among others from more than 1,000 restaurants.

Grubhub charges restaurants a flat fee per order plus a percentage of the food’s total price.

Grubhub’s business model is based on an estimate of how much food it will sell and the number of orders it will take from each restaurant, not on the number of food servings.

The commission rate of Grubhub to restaurants is a flat fee of 4.5% of the total order price.

Grubhub also charges restaurants 2.5% to 7% of orders that generate less than $20 in sales.

The fee structure isn’t exclusive.

The commission rates also include a percentage-based fee on orders that generate under $20 in sales, but restaurants can also pay a flat fee of $10 per order to encourage sales.

Grubhub’s per-order fee is below the cost of taking phone orders, and this fee doesn’t include the cost of taking orders by fax, mail, or in person.

Types of Grubhub Fees

Grubhub charges a $5.49 delivery fee for each order.

This fee varies by restaurant, and Grubhub offers discounts for the first few orders.

The service fee is 2.9% of each order and may vary based on the order volume, day of the week, restaurant, etc.

Grubhub offers a variety of payment methods.

The customers can pay online with a credit card, debit card, PayPal account, or pay with cash when the food is delivered.

Grubhub offers 2-for-1 deals on certain days and 3-for-1 deals on certain days.

In this case, they can order two or three meals for the same delivery charges.

Grubhub offers a variety of discounts based on the customer’s order history, the size of the order, whether the customer is a regular customer, etc.

These fees are common of most food delivery companies. You can read about how how fees stack up to competitors on our DoorDash vs Grubhub guide.

How Much Does Grubhub Cost to Deliver?

Grubhub is revolutionizing how restaurants serve food, but it has to charge something to do so.

The company charges eligible restaurants a fee for each item ordered, a percentage of the order total, delivery fees, and a percentage commission of the restaurant’s total earnings.

GrubHub requires its restaurants to charge a delivery commission, and many charge a flat fee of around $5 per order.

Some restaurants charge a delivery fee based on an item’s weight.

Customers can order through Grubhub’s delivery app, and delivery fees vary depending on the distance the food has to travel.

Grubhub charges customers a fee for using the service.

Grubhub’s standard service fee is $3.99.

GrubHub charges a 15% fee on restaurants’ total orders and a 5% fee for restaurants that pay by check.

GrubHub’s fees are in addition to the restaurants’ delivery commission.

Did you Know?

Grubhub Plus is a great way to save money on food deliveries. If you use the service enough, this can save you money in the long run.

How Much Does Grubhub Charge for Pickup?

Grubhub charges customers for delivery services.

However, the delivery fee varies depending on the pickup location and the provider.

Grubhub offers a 14-day free trial period for its subscription program.

After the trial, customers can pay $6.95 per month or $19.95 per month for unlimited free delivery.

Grubhub offers a food delivery service.

Moreover, the company provides takeout from more than 50,000 restaurants.

Customers must order a minimum food purchase to qualify for free delivery from a restaurant.

The minimum purchase for free delivery varies by location.

Example Grubhub Cost: Hypothetical Order

Grubhub charges $2.25 as an order processing fee, plus $0.99 per delivery.

So, for an order that costs $40, Grubhub charges the customer $45.99.

The Grubhub costs include a $5 delivery commission which is added to the price of the order.

Grubhub also offers a 10% discount to new customers, which lowers the cost by $1.40.

If a customer orders three small orders totaling $40, the customer will pay $45.99, $22.50, and $13.99, respectively.

How Much Does Grubhub Charge Restaurants?

vector graphic showing grubhub drivers pickup up food from a restaurant as part of the grubhub for restaurants program

The company’s business model is simple.

Restaurants pay a set percentage of the total order price to Grubhub, which serves as a middle-man.

Grubhub handles the customer side, taking credit card information and verifying orders before shipping food.

Grubhub also manages the customer’s billing at the end of the meal, collecting payment from the consumer.

Grubhub uses an algorithm to determine its restaurant partners’ pricing.

The algorithm factors in factors like the restaurant’s star rating, the size of its menu, and its location.

Grubhub then matches restaurants’ prices with those of their competitors.

This gives restaurants the chance to set their prices and guarantees Grubhub’s customers the lowest price possible.

The company’s motto is “a fair price for everyone”, and it’s one of the few food delivery businesses that charge restaurants the same price as customers.

Grubhub has a fee for canceling an order.

This can be up to $12, depending on your location and how far the restaurant is from you.

Grubhub takes 15% of the total order price, plus 15% of the estimated tip, as it’s known in the industry.

This accounts for most of their revenue.

However, Grubhub also collects a 5% fee on credit card transactions and a $0.99 fee for every order that’s placed through the company’s website or app.

1. Marketing Fee

The basic business model is to sell advertising to restaurants that use Grubhub’s service.

Therefore, it charges restaurants 20% of the order’s total value.

Grubhub’s customers are primarily restaurants, not consumers.

Nonetheless, the company generates most of its revenue from advertising.

2. Delivery Fee

Grubhub charges a 10% delivery fee for each order from both the customer and the restaurant.

The Grubhub delivery fee is whatever portion the company receives—it’s usually between $0.99 and $12 but varies depending on location and event promotions.

Some restaurants charge an additional tip to be paid upon arrival, so be aware of this before ordering.

3. Processing Fee

Grubhub charges $0.30 and 3.05% as a processing fee for placing an order through the platform.

Grubhub Restaurant Profit Calculator

Grubhub charges a commission fee to restaurants for each order.

Restaurants are responsible for the cost of food, processing fees, and any other costs incurred in fulfilling an order placed through Grubhub.

Enter the Grubhub restaurant fees, the Grubhub percentage, the number of orders, and the Grubhub profit percentage.

The Grubhub profit calculator will calculate the Grubhub profit.

screenshot of the grubhub profit calculator to explain the grubhub cost to restaurants

Grubhub takes a percentage of your restaurant orders.

Using this online food delivery platform, you can use the Grubhub profit calculator to see how much money you’ll be making.

Increase in Grubhub Pricing

The increase in food prices in Grubhub can be attributed to the company’s decision to expand.

However, the company added 150,000 non-partnered restaurants that have not consented to be included in the platform.

Grubhub plays the role of a third party in this case and takes the initiative to advertise these restaurants’ menu prices.

And when a customer places an order, they get it from the restaurant.

However, this practice is unpopular with restaurateurs because of the complaints that come up and negatively portray the eateries.

In addition, the customer bears the marketing, delivery, and processing fees included in the total food cost making the order expensive.

Wrapping Up

Grubhub’s service is available in a broad range of U.S. cities.

The company has partnered with thousands of high-end restaurants across these regions, offering diners a vast selection to choose their next meal or catering order.

Grubhub is a good option for those looking to order food online.

There are a lot of benefits of ordering your next meal through Grubhub, including convenience, easy use and access on all devices, and excellent customer service.

It also allows users the ability to compare prices at various restaurants before ordering through them directly.

Whether you’re looking for a quick lunch or a full catering service, Grubhub has something that will work within your budget.

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