Dive Brief:

• Grubhub rolled out its newest feature, Grubhub Guarantee, on Monday in which the company promises on-time delivery and the lowest price compared to competitors, according to a press release. 
• If an order arrives late, Grubhub will offer Grubhub Gaurantee Perks of at least $5 off that can be used toward a future order. If a diner finds a better price for their Grubhub order on another third-party delivery service, Grubhub will pay the customer the difference up to $10 and provide $5 in GHG Perks, according to the company's website. Perks granted are funded by Grubhub and not the restaurant.
• Grubhub said its latest feature will help protect restaurant reputations and create better diner experiences. Diners typically blame both the restaurant and the delivery provider if they have a bad experience with their order. 

Dive Insight:

Grubhub's on-time guarantee could be a particular differentiator since the food delivery segment has been struggling with driver shortages and many drivers are unwilling to complete orders when customers don't tip. Some customers have complained of two-hour waits and cold food, WCPO reports.

"Restaurants work incredibly hard to create the best experience for diners, and we are helping to safeguard the reputations of our restaurant partners through Grubhub Guarantee," Adam DeWitt, Grubhub CEO, said in the press release. "We take restaurants' brand reputations seriously and believe Grubhub Guarantee will help restaurants grow their online business."

Grubhub is also highlighting this new feature through an extensive marketing campaign, which will include a national TV spot, that could also help boost awareness of its restaurant partners. Influential athletes, including Alex Morgan, Allyson Felix, Caeleb Dressel, Hunter Woodhall and Tara Davis, will create unique content across social channels echoing the campaign's theme of the importance of consistency for good performance. 

Grubhub Guarantee could also help improve customer loyalty, especially since the Perks granted will help bring diners back to the platform as they need to be used within 30 days of being issued. Grubhub has been struggling with regaining market share since DoorDash overtook the chain in 2019 following aggressive expansion plans. As of May, DoorDash garnered 57% of monthly food delivery sales while Grubhub had 17%, according to SecondMeasure. 

The company has also been working on diversification, partnering with a Las Vegas hotel in June to facilitate food orders in lieu of traditional in-room dining. Grubhub plans to begin delivering food across select college campuses in the fall using automated robots as well. Last year, it added a technology suite focused on pickup orders and launched its subscription service Grubhub+. Recently, it announced Grubhub Direct, which offers a commission-free option for independent restaurants to create their own online ordering websites.