Justin Gerrard’s Post

The pandemic is over for now, so stop ordering from Grubhub and Doordash unless you absolutely have to. They are price-gouging all of us. See below, from surveys on pricing compared to the original restaurant. Why should we have to pay such high tips, why should a stranger pay the wages of a restaurant because the restaurant won't pay living wages? Many waitresses and waiters make slave wages! Yes, slavery is legal in the sense of a person being paid $4/hr. Even fast food restaurants avoid paying medical and dental by having most of the employees work under 40 hours a week. When comparing prices between ordering directly from a restaurant and using delivery apps like DoorDash and Grubhub, there are noticeable markups on the apps. On average, prices for individual items on DoorDash and Grubhub can be 10-50% higher than in-restaurant prices. These markups are primarily due to the additional fees that delivery platforms charge both customers and restaurants. For example, a study found that ordering from Chipotle on DoorDash costs 40% more than ordering directly from the restaurant (Cheapism). Another example showed a $17.95 order at Chipotle through Grubhub costing nearly double a year later due to fee increases and price markups (Cheapism). DoorDash typically adds a service fee (about 10-15% of the order subtotal), delivery fees (which vary based on distance and restaurant), and small order fees for orders under a certain amount. Grubhub has similar charges, with service fees ranging from $1.50 to $9 and delivery fees set by restaurants, often ranging from $0 to $2.49 (Cheapism). Overall, the total cost of using these delivery apps includes the higher menu prices, service fees, delivery fees, and sometimes small order fees. This results in a substantial cost difference compared to ordering directly from the restaurant. If you want to save money, ordering directly from the restaurant and picking up the food yourself or using their own delivery service (if available) can often be cheaper. All Fast Food restaurants are charging so much now, it is actually cheaper to go to a side-down restaurant. Taco-Bell, McDonalds, KFC, Burger King, Inand Out, and many others are charging almost 100% more than they did 4 years ago. The wages are the lowest in 40 years compared to the cost of everything else.

Responding to popular demand and feedback, DoorDash has introduced new promotional tools to drive off-site ordering during slow business hours. Restaurants can now offer discounts on specific items during two key time slots: Lunch: 11 a.m. - 2 p.m. Happy Hour: 2 p.m. - 5 p.m. According to their press release, DoorDash stated that restaurants using item-level discounts have seen "an average of 33% increase in sales during Happy Hour and an average of 23% increase in sales during Lunch Specials." This feature is easily accessible for restaurants of all sizes and could provide a much-needed boost in sales on specific days. Full Article: https://lnkd.in/gyNXJgtH

📢 Exciting News in the Food Delivery Industry! 🚀 Wonder, Marc Lore's innovative food hall-delivery chain, is set to acquire Grubhub for $650 million. This deal will expand Wonder’s reach, providing a nationwide network of restaurants and couriers, while giving Grubhub a new strategic direction under Wonder's leadership. With this acquisition, Wonder aims to become a "super app" for meals, offering restaurants, groceries, and meal kits through a single platform. The deal includes $500 million in senior notes, $150 million in cash, and $250 million from new investors for further growth. Grubhub’s 375,000+ restaurant listings and 200,000 couriers will now integrate with Wonder’s Northeast-based operations. Expect a “curated selection” of Grubhub restaurants on the Wonder app alongside Wonder’s own concepts, including Blue Apron meal kits. This move redefines food delivery with Wonder's vertically integrated model and streamlined logistics, creating a new era for customers nationwide. Completion is expected in Q1 2025—exciting times ahead for food delivery! #Wonder #Grubhub #FoodDelivery #MarcLore #Innovation

📣 𝐖𝐨𝐧𝐝𝐞𝐫 𝐭𝐨 𝐀𝐜𝐪𝐮𝐢𝐫𝐞 𝐆𝐫𝐮𝐛𝐡𝐮𝐛: 𝐃𝐞𝐚𝐥𝐢𝐧𝐠 𝐚𝐭 𝐚 𝐃𝐢𝐬𝐜𝐨𝐮𝐧𝐭 The food delivery space shifts as Wonder Group, led by ex-Walmart exec Marc Lore, announces its acquisition of Grubhub from Just Eat Takeaway .com for $650M—a sharp drop from its $7.3B valuation in 2021. 𝐇𝐞𝐫𝐞'𝐬 𝐚 𝐛𝐫𝐞𝐚𝐤𝐝𝐨𝐰𝐧 𝐨𝐟 𝐭𝐡𝐞 𝐝𝐞𝐚𝐥 𝐚𝐧𝐝 𝐢𝐭𝐬 𝐛𝐫𝐨𝐚𝐝𝐞𝐫 𝐢𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬: 🔍 𝐊𝐞𝐲 𝐃𝐞𝐭𝐚𝐢𝐥𝐬: 🔹 𝐏𝐫𝐢𝐜𝐞: $650M ($500M in debt, $150M cash). 🔹 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐨𝐫𝐲 𝐓𝐢𝐦𝐞𝐥𝐢𝐧𝐞: Closing Q1 2025 (pending approvals). 🔹 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐁𝐚𝐜𝐤𝐢𝐧𝐠: Wonder raises $250M from investors. 🔹 𝐈𝐧𝐭𝐞𝐠𝐫𝐚𝐭𝐢𝐨𝐧: Grubhub's restaurant network joins Wonder’s app, and Wonder's locations integrate into Grubhub’s platform. 🍴 𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐖𝐨𝐧𝐝𝐞𝐫 🔸 𝐒𝐮𝐩𝐞𝐫-𝐀𝐩𝐩 𝐕𝐢𝐬𝐢𝐨𝐧: Combines restaurants, groceries, and meal kits into a single ecosystem. Enables multi-restaurant orders (up to 30 restaurants in one go) —a first in the industry. 🔸 “𝐅𝐚𝐬𝐭 𝐅𝐢𝐧𝐞” 𝐃𝐢𝐧𝐢𝐧𝐠 𝐄𝐱𝐩𝐚𝐧𝐬𝐢𝐨𝐧: Exclusive menus from chefs/restaurants like Maydan & Tejas BBQ. 🔸 𝐏𝐡𝐲𝐬𝐢𝐜𝐚𝐥 𝐆𝐫𝐨𝐰𝐭𝐡: 28 Northeastern US locations; 7 more by end-2024. 📉 𝐕𝐂 𝐈𝐧𝐬𝐢𝐠𝐡𝐭𝐬: 🔹 𝐏𝐨𝐬𝐭-𝐏𝐚𝐧𝐝𝐞𝐦𝐢𝐜 𝐒𝐡𝐢𝐟𝐭: 2023 foodtech funding dropped 81% to $9B. 🔹 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐂𝐫𝐚𝐬𝐡: Grubhub fell from $7.3B to $650M due to competition, slim margins, and operational costs. 🔹 𝐖𝐨𝐧𝐝𝐞𝐫’𝐬 𝐑𝐞𝐬𝐢𝐥𝐢𝐞𝐧𝐜𝐞: Diversification, like the $103M Blue Apron buy, attracts investor confidence ($950M Series C, 2023). 🌐 𝐁𝐫𝐨𝐚𝐝𝐞𝐫 𝐈𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐭𝐡𝐞 𝐕𝐂 𝐄𝐜𝐨𝐬𝐲𝐬𝐭𝐞𝐦: 🔸 𝐒𝐡𝐢𝐟𝐭 𝐓𝐨𝐰𝐚𝐫𝐝 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧: The 𝐖𝐨𝐧𝐝𝐞𝐫-𝐆𝐫𝐮𝐛𝐡𝐮𝐛 𝐝𝐞𝐚𝐥 underscores the need for consolidation in maturing sectors where standalone profitability is elusive. 🔸 𝐒𝐮𝐩𝐞𝐫-𝐀𝐩𝐩 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐢𝐧 𝐭𝐡𝐞 𝐔𝐒: The US market, unlike Asia, has yet to embrace super apps. Wonder’s acquisition could spearhead this shift, merging convenience and variety. 🔸 𝐑𝐞𝐚𝐥𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧 𝐨𝐟 𝐂𝐚𝐩𝐢𝐭𝐚𝐥: VCs may increasingly favor infrastructure-enabling technologies over direct-to-consumer platforms in foodtech. 🔸 𝐑𝐞𝐠𝐢𝐨𝐧𝐚𝐥 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐓𝐫𝐞𝐧𝐝𝐬: The Northeastern US emerges as a hotbed for foodtech innovation, with Wonder as a case in point. #WonderGroup #Grubhub #FoodTech #SuperApp #MergersAndAcquisitions #VentureCapital #Innovation https://lnkd.in/dmXaTJUW

Big news in the #M&A and third-party #delivery world! Grubhub purchased by Wonder for $650M. Grubhub plans to use the sale to increase investments in other companies where they have more of a competitive advantage. #restaurantindustry #foodservice #restauranttechnology #geckohospitality #digitalordering #onlineordering

Big Deal in the restaurant world with the acquisition of Grubhub, or at least the future of restaurants. What's my restaurant and M&A guy take? Wonder, lead by the e-commerce legend Marc Lore acquired Grubhub for $650 million, a steep discount to the $7 billion Grubhub was originally acquired at. It looks like the focus is gaining an established delivery fleet and customer base (with app downloads) to plug into Wonder. But doesn't it feel early? I'm pretty fascinated how two well known and great entrepreneurs in Marc Lore and Travis Kalanick (with CloudKitchens) are looking to futurize restaurants in the way they are, raising and splashing big amounts of capital to make a new model work. They're both chasing the same thing, a smarter restaurant kitchen that's automated, full of choice, incredibly convenient and optimized for delivery. They're trying to be better than the Ubereats model of driving around from restaurant to customer all over the city, but instead be a central kitchen with "all the food" able to deliver from a single place. It's hard to say if they're there yet, but from an M&A perspective I'd hope they have the model right. It's hard to buy a $650 million business and then change the whole vision and purpose, so Wonder has its work cut out for it. But, I'm incredibly curious about where they'll take it and if the new model of centralized kitchen is ready for such scale. #FoodDelivery #RestaurantIndustry #Ecommerce #MealDelivery https://lnkd.in/g_n-4-FY

🚲🛵The most sustainable pizza delivery in the world! 🛵🚲 REFLECTION ⏪ 2023 PART #4 When looking at the growing reuse industry world-wide, reusable pick-up options are gaining more popularity and usages, thanks to companies like Vytal | The reuse system, RECUP, Bold Reuse. What about reusable packaging for delivery? Are we making any progress there? Unfortunately, due to overly complicated app and deposit integrations (generating tokens, copy pasting through various apps, etc.) into third party delivery platforms such as Just Eat Takeaway.com and Uber this important take-away segment hasn’t gained momentum yet. Considering that delivery makes up roughly 40% of pizza sales (source: Pizza Today ), using PIZZycle would be a #gamechanger and a lighthouse project not only for us, but for the whole reuse industry. So why not integrate the option to chose reusable for delivery as simple as possible (hello conversion optimisation)? WE DID IT, together with our partner Dodo Brands we conducted a 21-week long pilot in 2023 in #Dubai, offering PIZZycle for delivery-orders in the most #convenient way possible and let us tell you, it was very successful and insightful! 💥 HERE’S HOW IT WORKED: ✅ Ordering Process: Only one click/touch to chose PIZZycle at the checkout ✅ No additional costs for the customers ✅ No other incentivations were needed THE RESULTS: 11 % of all customers ordered their pizza in a PIZZycle over a period of 147 days. The best part, not only does this share of reusable orders continues until today, Dodo pizza is now expanding this project with us throughout the world. Oh and btw. data shows that customers who chose PIZZycle are ordering again faster. Seems like a great revenue driver, if you ask us 😉 👉 Wolt Uber Just Eat Takeaway.com Katharina Hauke Delivery Hero DoorDash Deliveroo Glovo Postmates by Uber Gopuff Zomato WE NEED TO TALK, you guys are a crucial part of making reuse mainstream and we can show you how!💥 👉Also, pizza restaurants with own delivery, get in touch with Filip Raketic or Marlene Bruch if you’re interested in increasing your sustainability performance and revenue! 🍕 #reuse #deliverysystem #reusesystem #dodopizza #pizzachain #delivery #lieferando #wolt #deliveroo #doordash #foodservice #horeca #foodentrepreneur #pizza #pizzachain

𝗚𝗿𝘂𝗯𝗵𝘂𝗯 𝗔𝗰𝗾𝘂𝗶𝗿𝗲𝗱 𝗯𝘆 𝗪𝗼𝗻𝗱𝗲𝗿: $650𝗠 𝗗𝗲𝗮𝗹 𝗔𝗶𝗺𝘀 𝘁𝗼 𝗥𝗲-𝗘𝗻𝘃𝗶𝘀𝗶𝗼𝗻 𝘁𝗵𝗲 𝗙𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗙𝗼𝗼𝗱 𝗗𝗲𝗹𝗶𝘃𝗲𝗿𝘆 𝗞𝗲𝘆 𝗣𝗼𝗶𝗻𝘁𝘀: • Major Acquisition: Wonder, a next-generation food platform, has acquired Grubhub from Just Eat Takeaway for $650M, combining cash and senior notes. • Strategic Expansion: The acquisition aligns with Wonder’s mission to build a “super app for mealtime,” integrating first-party and third-party restaurants, groceries, and meal kits in a single platform. • Enhanced Logistics: Grubhub’s network of 375,000 merchants and 200,000 delivery partners will bolster Wonder’s capabilities. Wonder locations will also join Grubhub’s third-party delivery platform. • New Investment: Wonder secured $250M from new investors to fuel future growth. • Key Differentiators: Wonder’s “Fast Fine” dining offers exclusive menu items from top chefs, multi-restaurant orders, and 30-minute delivery times. • Notable Partnerships: Wonder partnered with Walmart earlier this year and has collaborated with leading chefs and restaurants. • Broader Scope: Grubhub’s logistics expertise complements Wonder’s delivery-first approach, with a robust presence in grocery, convenience, and meal delivery. 𝗪𝗵𝗮𝘁 𝗶𝘁 𝗠𝗲𝗮𝗻𝘀: ✅ Unified Food Ecosystem: The acquisition positions Wonder to deliver a seamless experience, merging dining, grocery, and meal kits into a single app. ✅ Industry Innovation: The deal highlights a shift toward integrated food platforms that prioritize speed, quality, and convenience. ✅ Competitive Edge: By combining Grubhub’s established logistics with Wonder’s proprietary technology, the companies can redefine meal delivery standards. ✅ Growth Acceleration: New capital and expanded capabilities will support Wonder’s scaling ambitions in the U.S. market. ✅ Customer-Centric Approach: Enhanced delivery times and broader selection could significantly improve customer satisfaction and loyalty. Progressive Grocer | https://lnkd.in/gUy8rzgq #retail #supermarkets #fooddelivery #innovation #grocerydelivery #Grubhub #Wonder

 Instacart paired with Uber Eats! USA users can now order from the favorite restaurants on Instacart, delivered via Uber Eats. Instacart customers will now be able to use the grocery delivery platform's app to order from hundreds of thousands of Uber Eats restaurant partners across the US, as part of a partnership between the two companies. Instacart said there would be a new tab on its app that would allow customers to choose from a selection of nearby restaurants, browse menus, place orders and track deliveries in real time. Formerly known as Maplebear, Instacart has been investing in platform improvements and ramping up its marketing efforts to attract more customers, particularly in the face of competition from industry giants like DoorDash, Amazon, and Walmart. Following the announcement, shares of Instacart experienced a 4% increase, while Uber Technologies saw a marginal uptick. In contrast, shares of rival DoorDash, the leading food delivery player in the U.S., declined by 2.3%. Here more details about this partnership.

DoorDash has introduced new discounting tools aimed at boosting off-peak traffic for restaurants. These features allow restaurants to promote lunch specials from 11 a.m. to 2 p.m. and happy hour discounts from 2 p.m. to 5 p.m., addressing feedback from eateries seeking to increase midday and afternoon orders. This move is comparable to Uber Eats' similar marketing tools added last December. Data shows that targeted daypart discounts can significantly enhance sales, with restaurants seeing a 33% increase during happy hours and a 23% rise during lunch specials. This initiative comes as many restaurants explore various strategies to attract customers during slower periods. Read More Here: https://lnkd.in/eMcFdh6x Restaurant Dive Aneurin Canham-Clyne Branded Hospitality Ventures Hospitality Hangout Podcast #hospitality #delivery #food #Uber #Marketing Charles Shoener Vicente DyReyes Tony Xu Nick Gillett Josh Buchmann Marianne Burke Miya Bates Marianne Burke Sanjay Kotte Eddie Danilov