Restaurants to No Longer Pay Fees for Grubhub Direct

Launched in 2021, Direct is a branded web ordering channel designed to give restaurants more options for driving online orders.

Grubhub is dropping delivery fees for restaurants using its Direct tool. 

Launched in 2021, Direct is a branded web ordering channel designed to give restaurants more options for driving online orders. It serves as an alternative to the Grubhub marketplace and allows restaurants to create their own online ordering channels. The tool has always been marketing commission–free, but in the coming weeks, the company will begin waiving the flat $1.99 fee paid by merchants for orders that are delivered via Grubhub couriers. The service will be free for restaurants once the fee is dropped, with the exception of a 3 percent order processing charge. 

“A robust digital footprint is key for merchants as they look to reach more diners across ordering channels,” Kate Green, vice president of restaurant services and innovation at Grubhub, said in a statement. “Our restaurant innovation team is hyper-focused on gathering and analyzing feedback from merchants and data from our platforms. We put these insights into action to further support restaurants’ goals by building products and tools that help drive their business forward. We’re excited to strengthen our offerings for merchants and to serve as an even better, more valuable partner.”

The $0 delivery fee is one of several new features coming to the platform. Soon, merchants will be able to add their Direct site to their Google profile and make it their default ordering option. According to Grubhub data collected during testing, merchants that do so receive nearly 20 times the orders as those who don’t list their Direct site on their Google profile. 

The company also is adding a guest checkout option that will allow customers to place an order without creating a Grubhub account. The change was made to remove barriers at checkout, making it easier for new diners to order while helping restaurants generate more sales. 

Grubhub teased additional updates that may be coming down the line. 

“Commission-free ordering and integrations that allow merchants to market to diners are just two components of our Direct product suite,” the company said in a statement announcing the new features. “We also know just how powerful a loyal diner base is for our partners. To generate this loyalty, merchants first and foremost need to be where their diners are. Today Direct is a branded website, but as we look to the future, we’re testing additional branded channels that will enable merchants to add more touchpoints with their diners.”

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