GrubHub Growth Strategy – Growth Hacking Tips You Can Use
GrubHub, an online food ordering company founded in 2004, is an excellent example of success built on continuous innovation in response to customer’s needs.
In the beginning, the site did nothing but list restaurants in the user’s area that would deliver. The service ran on a freemium model. All restaurants in the area were listed, but those that subscribed were given premium placement.
As more restaurants began to sign up, many wanted to know if GrubHub planned to add online ordering functionality. The company began to use each new subscription sale as a way to refine their product, even going to far as to offer discounts to restaurants in exchange for feedback.
The preference of the customer dictated the evolution of the product, leading to a major strategy change away from subscriptions in 2006. Restaurant owners preferred a commission based approach, paying only when they actually made money through their listing via orders.
All restaurants were still listed, with preferential placement going to those that agreed to online ordering.
As GrubHub continued to evolve and learn from its customers, new options were added like a mobile app, coupon offerings, filters to highlight specific cuisines, and other sorting features
In its 2014 filing for an IPO, GrubHub touted at 67% growth rate, which some critics have labeled misleading. Regardless, the service has menus for more than 250,000 restaurants, with ordering options for approximately 20,000 in more than 500 cities.
The company continues to innovate, and recently released a dedicated tablet-based service called OrderHub to allow restaurant owners real-time management capability for their digital pickup and delivery orders.