Despite a decline in overall order volume, Grubhub remains optimistic about one promising segment of its business, its campus dining program.
In its latest earnings report, Grubhub reported a 12 percent decrease in North American orders, falling from $74.1 million in 2023 to $63.9 million this year. However, the campus dining sector stands out as a growth driver. Orders through this program have surged by 28 percent year-over-year.
“The business now accounts for 18.18 percent of orders in the North America segment in the first quarter of 2024, and we also expect the campus to continue to be a fast-growing part of the business,” said Grubhub CEO Jitse Groen in the earnings call.
Grubhub is now adding 60 more schools to its roster, including the University of Alabama at Birmingham, the University of Tampa, the University of Missouri, Howard University, and Tulane University—to name a few. With these additions, its campus network has grown to 360 universities, up 21 percent from last year.
What’s driving the growth? Students love convenience. And Grubhub has implemented various forms of technology and innovation to streamline meal ordering.
Automated delivery with robots
Grubhub partners with Cartken, Kiwibot and Starship to provide robotic delivery on campuses. These bots, already operational at 20 locations, are set to expand to nearly a dozen more this semester.
Starship robots deliver for Grubhub on various campuses.
Amazon’s Just Walk Out technology
This technology allows students to shop at campus convenience stores and skip the checkout line, with payments automatically deducted from their meal plans or linked Grubhub accounts.
Flexible use of dining dollars
Students can use their campus meal dollars for mobile ordering and robot delivery, as well as at off-campus restaurants through Grubhub. This flexibility helps cash-strapped students.
Apex smart lockers
Grubhub partners with Apex for smart lockers and fast pickup, enabling restaurant staff to place orders in lockers that students can access using a texted code.
Sustainability top of mind
Through the ReusePass program, students can opt for reusable packaging at checkout, leveraging Topanga.io’s track-and-trace technology. Although currently not available via robots — future updates may change that.
Additionally, students whose schools are partnered with Grubhub receive Grubhub+ for free. That means $0 delivery fees and lower service fees on eligible orders.
In a blog post Rob DelaCruz, Grubhub Vice President and General Manager of Campus and Hospitality discussed why campuses are a match made in heaven.
“Many campuses are focused on being tech-forward, and they expect these innovative solutions so they can stay up to date with the latest offerings,” he said.
Grubhub now reaches half a million new students and serves a total of more than four and half million students.
“Our goal is to maintain this double-digit growth trajectory and establish a strong foundation with Grubhub’s next generation of diners,” said DelaCruz.
