As food delivery services continue to grow in popularity, some customers may wonder if they are being charged extra fees or if prices are being marked up on their orders.
Grubhub, a popular food delivery platform, has been the subject of such rumors, with customers questioning whether prices are being increased beyond what restaurants would normally charge. In this blog post, we take a closer look at Grubhub’s pricing policies to determine whether or not it marks up prices.
Does Grubhub Markup Prices?
Grubhub doesn’t mark up prices directly because the restaurants are the ones that set the prices. However, when Grubhub increases its cut of what the restaurants earn, this results in the prices going up.
This means that when you order food through Grubhub, the restaurant sets the price, and then Grubhub takes a commission or cut of the sale. This commission can vary and can be a percentage of the total sale or a flat fee.
So, while Grubhub doesn’t technically mark up the price, it may indirectly lead to higher prices depending on the commission they charge restaurants.
Grubhub Extra Fees and Surcharges
In addition to commissions, Grubhub also charges fees for their services.
- One such fee is the delivery fee, which is a fee set by each restaurant and can range from $2 to $8.
- Additionally, Grubhub also charges a small fee if your order is under $10. This $2 small fee is charged to cover operational costs.
- When you place an order on Grubhub, you will also see a “service fee” listed, which is typically between 5 and 15% of your order total. This fee is also used to cover operational costs and keep GrubHub running smoothly.
Save on Grubhub Order
If you’re a frequent Grubhub user looking to save some money on fees, you may want to consider GrubHub Plus. For $9.99 per month, you can enjoy $0 delivery fees on orders over $12 from restaurants enrolled in the GrubHub Plus program, as well as other membership benefits. This program can be a great way to save some cash if you use Grubhub regularly and can help offset some of the fees you would otherwise pay.
So, does Grubhub markup prices? The answer is no, but it’s not quite that simple. While Grubhub doesn’t directly increase prices, their commission charges and fees can result in higher costs for customers.
It’s important to be aware of these charges when ordering food through Grubhub and to consider joining GrubHub Plus if you use the platform frequently.
As with most things, it’s all about balancing convenience with cost, and knowing about how Grubhub’s pricing works will help you make the best decisions for your budget.