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Grubhub guarantees lowest price, on-time delivery

The Grubhub Guarantee program will give customers in-app credit if a delivery is late or if they find a lower price on another app.
Grubhub Guarantee interface on smartphone screens
Photograph courtesy of Grubhub

Third-party delivery service Grubhub is guaranteeing that customers' food will arrive on time—and for the lowest price—under a new program called Grubhub Guarantee.

If a delivery is late, or if the customer finds a lower price for the same order on a different delivery app, the guarantee entitles them to submit a claim and get up to $15 in Grubhub Perks to spend in the app.

Grubhub said the new feature would help improve diners' experience and protect the reputation of its restaurants. 

"We take restaurants’ brand reputations seriously and believe Grubhub Guarantee will help restaurants grow their online business," said CEO Adam DeWitt in a statement.

The program, which will be backed by a "robust" marketing campaign including a national TV ad, also sees the company starting to compete explicitly on price. That's a strategy employed by new owner Just Eat Takeaway.com in its European markets, and one that it has hinted at bringing to the U.S.

"One of the pillars of our delivery strategy is to be the price leader in our industry," said JET CFO Brent Adriaan Wissink on an earnings call in March, according to a transcript from financial services site Sentieo. "This means offering lower delivery fees across our markets compared to the competition, including free delivery."

The U.S. food delivery market, which is dominated by DoorDash, Uber Eats/Postmates and Grubhub, does not have a clear price leader.

Restaurants set their own menu prices on Grubhub, and the company did not appear to have plans to lower delivery fees to achieve lower prices. "At this point, it's more focused around being the guaranteed lowest price as compared to other third-party delivery platforms," a representative said in an email. 

The price guarantee applies to "certain orders" when a lower price is available on one of either DoorDash, Uber Eats or Postmates. It includes the price of the food and beverage plus tax and fees, excluding promotions and tips. If the claim is accepted, Grubhub will pay the customer the difference in Grubhub Perks, plus an additional $5 in Perks, up to $15. 

Late delivery claims are eligible for at least $5 in Perks. 

Claims must be submitted within seven days of the order being placed. Perks can be redeemed only on a future order, and they expire after 30 days.

Grubhub Guarantee is the latest in a flurry of news from the company after its acquisition by JET became official last month. In late June, it announced that it would power room service at the massive new Resorts World Las Vegas development. And last week, it said it would offer robot delivery on college campuses through a partnership with Russia-based Yandex. 

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