Grubhub launches new subscription program to compete with other food delivery services

Grubhub is launching a new subscription program for its customers that will cost $9.99 per month. The Grubhub+ program offers unlimited free shipping and 10% cash back. Most food delivery services already have their own subscription programs, but customers aren’t flocking to pay a monthly fee.

For $9.99 per month and a promise you can cancel anytime, Grubhub+ includes unlimited free shipping, unlimited 10% cash back on orders, No Kid Hungry matching donation, access to Elite Care for support and priority access to other benefits. Free delivery only applies to restaurants participating in Grubhub+, which you can identify by the GH+ next to their name.

Grubhub offers a free 14-day trial of the subscription program to anyone who signs up. If you can prove you’re a member of another food delivery subscription service, you’re eligible for a 30-day free trial of Grubhub+. Students at 150 campuses will also get Grubhub+ for free.

“The program also helps diners do more for their communities, as Grubhub will match member donations made with orders placed at Grubhub+ restaurants through our industry-leading Donate the Change feature. Over the past year , Grubhub diners have donated over $10 million to No Kid Hungry by simply rounding up and donating their change, and now Grubhub will match subscriber donations, giving members the opportunity to double their impact” , grubhub said.

Grubhub isn’t the only food delivery company to offer subscription services. Uber Eats, DoorDash, and Postmates have their own versions of subscription programs, but do they actually increase customer loyalty?

Although some people are signing up, data from Second Measure reveals that less than 20% of customers at Postmates and DoorDash were subscribers. For example, Postmates had 15% of its customers signed up to be subscribers, while DoorDash had 14%.

The low number of subscribers at Postmates and DoorDash shows that many consumers are tired of being forced to sign up for another monthly service that automatically deducts money from their accounts. They would rather have the freedom to shop around and use the services that meet their needs.

Gerald R. Schneider