sale plan

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Situation Analysis

Industry Outlook

GrubHub is rated as the most successful online and phone connected company for ordering food. Its main aim is to interconnect hungry customers with diners, at local nearby takeout hotels. The company allows people to order food from about 85,000 take out hotels spread around the states of America in more than 1,600 cities. The takes outs also reach London, and its services are efficient on a 24/7 basis, with customer care service always attending to customers in time and effectively. The industry has managed to make notable success within the past few years. As at the year 2017, Grubhub had assets totalling over US$1.54 billion, with equity amounting to US$ 1.12 billion. The industry has also made about US$ 98.98 regarding revenue in the year 2017, which is a sign of progress in the sector. In early 2018, the company registered a total of 2125 employees most who consist of cab drivers who distribute the food to the required regions. It serves a lot of people around the US and its beginning to expand its services in a global view. Within the third quarter of the year 2018, the company managed to serve 9.81 million customers, making around 867 million shillings, which is a lot of money for that period. It made $13 million of profit. GrubHub has its food delivery system, which boosts their company a great deal because they make more money from delivery services (Mukherjee & Bernard, n.p)

Customers of GrubHub love the quality of their food, efficiency in delivery and their availability at any time of the day. GrubHub can remain the best and largest hotel food ordering platform in America because its food is rated as fresh, and healthy and reaching the standards of many customers. Their online services are also very reliable, and hence customers enjoy the efficiency in ordering food (Mukherjee & Bernard, n.p).

GrubHub takes the lead in the US with a market share of 34% which indicates that Americans prefer it more as opposed to other food suppliers. The company offers a range of many healthy foods, which keep the health of consumers on the frontline. People want to cook less; buts still want to enjoy a well-balanced, healthy meal which doesn’t have to compose of fast foods. Grub hub ensures customers get their health and quality meal, which is what customers now seek in food restaurant online companies (Mukherjee & Bernard, n.p).

COMPETITIVE ANALYSIS   

Due to the upcoming demand for the delivery market, a couple of companies have risen try and offer the best services in that line. GrubHub's number one competitor is DoorDash. It has its headquarters at San Francisco in California. It works in the field of retail food field and manages to make an income ranging 1.19% of what GrubHub makes. DoorDash has recently increased its valuation to about $4 billion in a matter of six months. It also covers about 1000 US and Canadian cities and still has an aspiration of attaining 2000 cities by the end of 2018. It has some beneficial partners like Dine Brands Global Inc., Cheesecake Factory Company and Chipotle Mexican Grill that support the business to keep growing (Washam, n.p).

Another competitor is Amazon delivery institution, which is new in the market but threatening to be a key competitor to GrubHub. Another of GrubHub’s rivals is Caviar, also located in San Francisco in the year 2012. Although caviar generates less income than GrubHub, its competition is very close because it makes around $837.5M less than what GrubHub makes. Caviar specialises in caviar to many restaurants around America. It also does personal deliveries to customers, and chefs in private sectors (Washam, n.p).

Its biggest competition comes in the distribution sector which also happens to be the main challenge facing the company. Having formulated their delivery system, the rise of Uber which transports people and delivers things at a way affordable prices threaten the delivery services of GrubHub. In the year 2016, Uber registered revenue of 6.5 billion USD which implies that it was doing a good job. Uber manager ranked twice following Grubhub’s as first, meaning that the managers were closely competitive. However, uber beat it in gender score, with GrubHub having 54 while Uber had 58. Therefore, uber is a core competitor to GrubHub (Scotto, n.p).

Moreover, the company faces internal competition like employees. Employees are on the lookout of the companies with bets offers especially can drivers doing deliveries. Therefore, many food delivery companies are doing their best to treat employees better to get humble workers for delivery services. For instance, Uber ranked the fits in Employee net promoter score, followed by Grubhub. Uber is looking into employee matters closely than GrubHub and might lose some to Uber if they don’t get up to their game (Washam, n.p)

Work Cited

Mukherjee, Partha, and Bernard J. Jansen. "Correlation of Brand Mentions in Social Media, and Web Searching before and after Real Life Events: Phase Analysis of Social Media and Search Data for Super Bowl 2015 Commercials." Data Mining Workshop (ICDMW), 2015 IEEE International Conference on. IEEE, 2015.

Scotto, Stefano Alexander. "Utility for creating heat maps for the study of competitive advantage in the restaurant marketplace." U.S. Patent No. 8,880,420. 4 Nov. 2014.

Washam, Zachary T. "PubHub: A Mobile Application Business Plan." (2015).