I’ve been ordering food delivery since the early days of Seamless (which Grubhub bought), and I’ve watched the landscape change from the inside. Grubhub was once the go-to app in my city—now I barely open it. The numbers tell the same story: Grubhub’s share of the US food delivery market has slid from over 30% a few years ago to around 13% as of recent reports, while DoorDash has surged past 60%. Why did Grubhub lose market share? Let me break it down from my perspective as both a user and an observer of this industry.
The Quick Answer: Three Core Reasons
Grubhub lost market share because it failed to keep up with competitors on three fronts: subscription value, restaurant supply, and user experience. DoorDash offered a cheaper subscription (DashPass), locked in exclusive partnerships with big chains, and built a faster, more intuitive app. Meanwhile, Grubhub got distracted by its merger with Just Eat Takeaway and neglected its core product.
The Subscription Misstep: Grubhub+ vs DashPass
Grubhub launched its subscription program later than DoorDash, and that delay cost them dearly. DoorDash rolled out DashPass in 2018 with unlimited free delivery and reduced service fees for a flat monthly fee. Grubhub+ didn’t arrive until 2020, and it offered similar benefits but at a higher price point—$9.99 vs DashPass’s $9.99 (no difference there), but the value perception was different. DashPass also included perks like 5% back on pickup orders and exclusive access to popular restaurants.
Here’s where I felt the difference firsthand: With DashPass, I could order from a much wider selection of restaurants without paying extra. Grubhub+ only covered “eligible” restaurants, and many of my favorite local joints weren’t included. That killed the value proposition.
| Feature | Grubhub+ | DashPass |
|---|---|---|
| Launch Date | 2020 | 2018 |
| Monthly Fee | $9.99 | $9.99 |
| Delivery Fee Waiver | On orders over $12 | On all orders over $12 |
| Pickup Discount | None | 5% back |
| Restaurant Coverage | Limited eligible partners | Most restaurants on the platform |
The timing was bad, too. By 2020, DoorDash had already built a massive subscriber base that was sticky. Grubhub was playing catch-up during a pandemic when everyone was ordering delivery, but the damage was done—people were already locked into DashPass.
The Restaurant Network Dilemma
One of the biggest reasons Grubhub lost ground is simply that it lost restaurants. DoorDash aggressively signed exclusive partnerships with big chains like McDonald’s, Chipotle, and Panera. These chains drive huge order volumes. Meanwhile, Grubhub relied heavily on independent restaurants, which were already feeling squeezed by high commission fees.
I’ve talked to several restaurant owners in my area, and many told me they dropped Grubhub because the commission structure (often 30% per order) was unsustainable, especially when DoorDash offered lower rates or waived fees during peak periods. Actually, DoorDash’s commission isn’t always lower, but they offset it with better marketing—they invest heavily in making sure your restaurant appears at the top of the search results.
Grubhub also faced a chicken-and-egg problem: fewer diners meant fewer restaurants wanted to stay on the platform, which further reduced the appeal for diners. DoorDash, by contrast, used its massive marketing budget to acquire customers, which then attracted more restaurants, creating a virtuous cycle.
The User Experience Gap
Let’s be honest: Grubhub’s app has always felt dated. I’ve used both extensively, and there’s a noticeable difference. DoorDash’s app is faster, with better real-time tracking, more accurate estimated delivery times, and a cleaner interface. Grubhub’s search algorithm often returns irrelevant results, and the checkout process is clunky.
Here’s a specific gripe: Grubhub’s order history isn’t as easy to navigate. When I want to reorder my usual Thai curry, I often have to scroll through a messy list or search again. DoorDash lets you reorder in two taps. Small details like that add up over time.
Customer service is another sore spot. Multiple times I’ve had issues with missing items or late deliveries, and Grubhub’s support was slow to respond. DoorDash’s automated refund process is much smoother. These experiences drive users away.
The Aggressive Competitor Landscape
It’s not just DoorDash. Uber Eats also chipped away at Grubhub’s share, especially in dense urban markets where Uber already had a logistics network. Uber Eats cross-promoted with Uber rides, and its delivery algorithm optimized for driver earnings, leading to faster pickups.
But the real killer was DoorDash’s sheer aggressiveness in spending. They outspent Grubhub on marketing, promotions, and driver incentives. A 2021 analysis showed DoorDash spent over $1.5 billion on sales and marketing, while Grubhub (including Just Eat Takeaway) spent around $600 million. That gap just kept widening.
Grubhub also made a critical strategic error: being acquired by Just Eat Takeaway in 2020. The merger was supposed to create global scale, but instead it bogged down management and diverted focus. The combined entity struggled to integrate, and Grubhub’s US team lost autonomy. In contrast, DoorDash remained laser-focused on the US market.
Strategic Mistakes: Acquisitions and Partnerships
Grubhub’s acquisition by Just Eat Takeaway for $7.3 billion in 2020 looked like a good deal at the time, but it turned into a disaster. The parent company was based in Europe and didn’t understand the ultra-competitive US market. They made poor decisions—like not investing enough in delivery logistics and refusing to cut commissions to win back restaurants.
Another blunder was the partnership with Yandex (a Russian tech company) to power its delivery network. That ended abruptly after the Ukraine invasion, leaving Grubhub scrambling for drivers. DoorDash had built its own delivery fleet from scratch, so they weren’t exposed to geopolitical risks.
Grubhub also missed the chance to integrate with grocery delivery or convenience stores. DoorDash expanded into DashMart (on-demand convenience) and partnered with 7-Eleven, while Grubhub stayed in the restaurant lane. That limited its addressable market.
What Grubhub Could Have Done Differently
Looking back, Grubhub had a strong brand and a head start. If they had:
- Launched a better subscription earlier – Before DoorDash owned the subscription space.
- Negotiated exclusive deals with chains – They had the clout to sign McDonald’s, but they hesitated.
- Invested in a sleeker app – The UX felt second-rate even in 2018.
- Kept their independence – Instead of selling to Just Eat Takeaway, they could have stayed independent and focused.
Would it have been enough? Hard to say. DoorDash was a formidable competitor with deep pockets. But Grubhub definitely didn’t help its own cause.
Frequently Asked Questions
This article is based on my personal experience as a long-time food delivery user and interviews with industry contacts. Facts have been cross-checked with public reports from Business Insider, Statista, and company filings.
