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Grubhub also charges restaurants 2.5% to 7% of orders that generate less than $20 in sales. The commission rate of Grubhub to restaurants is a flat fee of 4.5% of the total order price. Grubhub’s business model is based on an estimate of how much food it will sell and the number of orders it will take from each restaurant, not on the number of food servings.

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Grubhub charges restaurants a flat fee per order plus a percentage of the food’s total price. They serve about 100 cities including San Francisco, Chicago, Philadelphia, Boston, Washington, and New York City among others from more than 1,000 restaurants. Grubhub is one of several companies aiming to reinvent the takeout business. Some restaurants charge an additional tip to be paid upon arrival, so be aware of this before ordering. The delivery fee is whatever portion Grubhub receives, usually between $0.99 and $12, but varies depending on location and event promotions. Grubhub takes a percentage of each order from both the customer and the restaurant. Grubhub has no direct control over how much restaurateurs charge for their orders, meaning prices vary widely between menus and locations. However, these fees are at par with other third-party service providers like Doordash, Uber Eats, Seamless, and Postmates. Grubhub is expensive because restaurants participate in coming up with the rates. However, this rating is independently rated, and Grubhub does not approve or disapprove of restaurants on its scale. Grubhub does have a rating system that restaurants can use to take a chance on new customers. In short, a minimum order amount attracts higher service fees.

The service fee is the amount Grubhub charges the restaurants for facilitating the order.Grubhub’s delivery fee is the fee charged by the restaurants to deliver food to the customers’ locations.Grubhub’s pricing is based on delivery and service fees, which make up 70% of the meal price. How Much Does Grubhub Charge Restaurants?.How Much Does it Cost to Order Grubhub?.