Grubhub plans to remove delivery and service fees on restaurant orders over $50 starting Feb. 2; Grubhub's US market share fell to ~4% in 2025 from 10% in 2023
Context & Ripple Effects
Grubhub is attempting to improve the economics of larger restaurant orders after its U.S. share declined from about 10% in 2023 to about 4% in 2025. The move follows a period of retrenchment that included a workforce reduction of roughly 23% after Wonder’s takeover.
Fee clarity is also commercially sensitive for Grubhub: its $25 million FTC and Illinois settlement over alleged fee and pay disclosures makes a plainly defined threshold more consequential than a routine promotion.
First-order effects
- Customers placing restaurant orders above $50 will see delivery and service fees removed beginning Feb. 2, lowering the checkout total for qualifying baskets.
- Grubhub gives up fee revenue on those orders in exchange for a more competitive offer aimed at increasing conversion or order size.
Second-order effects
- The $50 cutoff encourages customers near that level to add items, while restaurants on the platform may see demand tilt toward higher-value orders rather than smaller ones.
- DoorDash and Uber may face pressure to defend high-value order demand with comparable fee waivers or membership benefits, especially where customers compare final checkout prices.
Third-order effects
- The move reinforces that delivery platforms compete increasingly on the all-in consumer price, not simply restaurant selection; transparent fee design becomes a core retention lever.
- If large-order fee waivers become common, the sector’s economics could shift further toward subsidies, subscriptions, and restaurant-funded promotions, while scrutiny of platform take rates remains relevant.
The trend: Food-delivery platforms are using targeted fee reductions to defend demand and basket size as scale advantages concentrate among market leaders.