‘Sharpen Your Pencil’ Falls on Deaf Ears for Grubhub Exec

Now the head of enterprise restaurants at Grubhub, he says Grubhub is trying to figure out how to “break the dysfunctional model”in the food delivery business today, in which the restaurant operators want to own the data that third-party delivery providers collect, but the third-party folks consider that their most valuable asset.

He described Grubhub’s recent partnership with Yum Brands as an exclusive deal, in which Yum restaurants like Taco Bell and KFC use only Grubhub’s ordering platform and in turn Grubhub shares customer data with Yum and “similarly we make the best of our technology and build that into their channels.”

“This is the core crux at Grubhub,”he said, that the company is trying to wrestle with and has not yet resolved. There are two paths restaurants can take. One is to work with all delivery players, renting all players’customers and playing each player off of the other for better prices. “The whole point of Path A is to maintain leverage with all of them,”he said.

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