In essence, the primary source of income from food delivery apps is commission fees. So let’s dive deeper into how Grubhub earns money.
Grubhub charges a commission fee from the partnered restaurants on each order. Also, it collects a fee amount from the customers when they place an order through the app.
In a wider view, it collects a 10% base commission fee and 3.05% processing fee along with an additional sum of $.30. Moreover, restaurants have to pay an extra commission of 20% for having a better position in the listing.
Five types of commission fees are pertinent to Grubhub’s model. It includes the following.
- Marketing commission
[/*]- Delivery commission
[/*]- Processing fee
[/*]- Delivery tip
[/*]- Sales tax
[/*]
It would be good to consider these monetization strategies while developing your
Grubhub Clone app. it is up to your decision to set the commission percentage. Make sure to set a competitive price so that your target users do not have a second thought of going ahead with other food delivery apps.
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