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GrubHub mobile orders to reach $7M by year-end: cofounderBy
GrubHub mobile orders comprised just 1 percent of the company’s total revenue last year. Since then GrubHub has expanded its mobile footprint and expects total revenue from mobile orders to increase dramatically this year.
GrubHub has made updates to its iPhone application and has released a new Android version. The company expects its mobile orders will comprise 10 percent of its total sales this year, reaching $7 million.
“We’re definitely seeing an increase in the number of people ordering food with our mobile apps,” said Mike Evans, cofounder and chief operating officer of GrubHub, Chicago. “We first launched our iPhone app in February 2009 and we’ve seen the number of orders placed through the app increase dramatically over the last year.
“Over the past six months alone, the company has seen a 300 percent increase in its install base,” he said. “Since the launch of our updated iPhone app last week, we have already seen a 50 percent increase in mobile orders.
“Mobile orders comprised 1 percent of our total revenue last year. With the growing popularity of our mobile apps, we project mobile orders will comprise 10 percent of our sales by the end of 2010, roughly $7 million.”
GrubHub iPhone features
Users can search their current location or enter an address, and GrubHub will display every restaurant that will deliver to that location. Users can order food from the application or call the restaurant directly.
With the updated iPhone application, GrubHub users can now log into their existing accounts or create a new one from their mobile device and take advantage of more personalized functionality.
Consumers can find which restaurants deliver to them using their phone’s GPS.
Additionally, the application lets users view menus, reviews and ratings before placing an order.
The application saves the credit card information so consumers do not have to re-enter it each time they place an order.
“People want to order from wherever they are,” Mr. Evans said. “So, if you’re at a friend’s house, you don’t want to have to borrow their computer when your phone is in your hand.
“Also, when you’re on your way home, you can go order so the food gets there when you get home and not have to wait,” he said. “With our new updated iPhone app, our users can now save credit card information and leave their wallet at home or not even have to get off the couch to pay for their food.
“Our mobile apps really simplify the ordering process.”
Android is here
GrubHub has also added new functionality for Android and other smartphone users.
This week the company released a public beta Android application that is the first to offer mobile food ordering from local independent restaurants using handsets based on Google’s operating system.
Android users can search by their current location, find a specific food item or restaurant name, read reviews and order online.
For people who do not want to install an application on their phone, GrubHub released significant improvements to its mobile Web site.
The mobile Web site now uses the latest features of HTML5, including geolocation and client-side storage, which will make reordering from GrubHub via the mobile Web easy.
“GrubHub’s mobile strategy simplifies the connection between hungry consumers on the go and restaurants,” Mr. Evans said.
“We want our mobile channel to be as feature rich as our consumer Web site and to take full advantage of mobile-specific functionality,” he said. “Our focus is iPhone, Android, HTML5 mobile Web browsers and tablets.
“The evolving mobile space and its technologies make it a rich environment for experimenting with innovative ideas.”
Giselle Tsirulnik is senior editor of Mobile Commerce Daily
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