Apps & Consumer
Grubhub eliminates delivery fees on orders over $50
Grubhub is permanently eliminating delivery and service fees on restaurant orders exceeding $50 in an effort to compete with major rivals like DoorDash and Uber Eats.
On Monday, the food delivery platform Grubhub announced a significant policy change alongside the release of its commercial for the Super Bowl—the annual US football championship and a major advertising event. Starting soon, the company is permanently eliminating delivery and service fees on all restaurant orders exceeding $50. The new advertisement stars actor George Clooney at a dinner party. During the commercial, the host dramatically asks, “Who will eat the fees?” to which Clooney responds, “Grubhub will eat the fees.” Grubhub states that this is a permanent offering aimed at putting more money back into customers’ pockets during challenging economic times.
This initiative could deliver significant cost savings for customers and may increase Grubhub’s appeal in a highly competitive market. The company notes that delivery and service fees on orders over $50 typically average about $13 per transaction across food delivery apps. Grubhub’s decision to permanently waive these fees on large orders represents a unique strategy in the food delivery sector. Neither DoorDash nor Uber Eats offers a permanent waiver of delivery and service fees on large orders. Instead, their promotions are typically limited-time offers or tied to paid subscription services, which often apply only to select restaurants or are subject to other restrictions.
The aggressive pricing strategy comes as the platform seeks to reverse declining user engagement and close the gap with its primary rivals, DoorDash and Uber Eats. Grubhub, which was acquired in 2024 by Wonder Group—the parent company of Grubhub, owned by Marc Lore—saw its monthly active users decline by 20% year-over-year in 2025 to 8 million, according to marketing intelligence firm Sensor Tower. By comparison, competitor DoorDash boasts nearly 50 million monthly active users. To help boost engagement, Grubhub also recently acquired Claim, a startup that provides cash-back rewards at local restaurants. Through the acquisition of Claim, Grubhub aims to help more restaurants engage customers through personalized rewards programs, which users can redeem for dine-in or pickup orders.
Why it matters
Grubhub is attempting to reverse a trend of declining user engagement by aggressively undercutting the fee structures of its larger competitors, DoorDash and Uber Eats. The permanent fee waiver represents a direct effort to close the competitive gap and rebuild its active user base.