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GrubHub and Yelp now offer delivery from over 80,000 restaurants

Ideally, the increased scale will drive down delivery costs.
David Lumb, @OutOnALumb
March 19, 2018
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To combat rival services DoorDash and UberEats, Grubhub is expanding its partnership with Yelp to deliver meals from over 80,000 US restaurants on the food listing company's site and app. This finalizes GrubHub's $288 million acquisition of Yelp's Eat24 directory that it began last fall. In exchange, Yelp will get an undisclosed cut of every GrubHub order made through its service.

By more than doubling the number of Yelp restaurants Grubhub offers delivery to, the latter hopes to trim delivery fees overall by sheer scale. If drivers are making multiple deliveries in a single trip, it costs less per order, the logic goes.

"I see a point where we could conceivably have extremely low if not free delivery for consumers," GrubHub chief executive Matt Maloney told The Wall Street Journal.

As anyone who's tried ordering from Seamless (which merged with GrubHub in 2013) or another service, high delivery costs sour the novelty of convenience. DoorDash and UberEats have tried to woo customers by delivering Wendy's and McDonald's, respectively, but there's little point in getting inexpensive fast food if the extra costs are as much as the order.

In this article: food, FoodDelivery, grubhub, services, yelp
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