Grubhub’s first-ever national Super Bowl commercial last Sunday showcased the food-delivery platform’s bold new approach to capturing market share: eliminating delivery and service fees on orders over $50.
Roughly half of Grubhub customers across the U.S. place orders over $50 each year, according to CEO Howard Migdal. Fees on those restaurant orders surpassed $1 billion across the category in 2025. Going forward, however, the Chicago-based company will cover those costs, hoping that such savings will drive more frequent orders and more meals per ticket.
Howard Migdal, Grubhub CEO
“We’re already seeing that when fees go away, customers reinvest the savings into their order by adding items or upgrading what they buy,” Migdal said in an emailed statement. “The simplest way to put it is: When you spend $50, you actually get $50 worth of food, and that changes behavior in a meaningful way.”
Fees on orders over $50 average around $13 across delivery apps, and more than 80 percent of customers have abandoned carts at checkout because of high fees. Removing the fees, Migdal said, circumvents ordering friction and unlocks demand.
“Orders over $50 are when the service and delivery fees start to get especially high, and we found it’s very easy for diners to reach that threshold when ordering food, especially for families,” Migdal said.
While fees on large orders represented a significant revenue stream for Grubhub, Migdal described those costs as ultimately discouraging larger orders. Erasing those delivery and service expenses for customers creates space for restaurants to lean into bundles, family-style meals and group-friendly menu items.
Grubhub aired a commercial announcing the elimination of service and delivery fees on orders over $50 during the 2026 NFL Super Bowl Feb. 8. The commercial featured actor George Clooney and was directed by Yorgos Lanthimos.
“Grubhub fully absorbs those fees, not our restaurant partners,” Migdal said, adding that the company views the initiative as a long-term investment rather than a short-term promotion. “While customers see direct savings at checkout, we expect the no‑fees benefit on orders over $50 to support merchants in two key ways. First, lower fees make customers more likely to reorder, driving repeat visits. Second, when diners save on fees, they tend to add more items to their carts, which leads to larger baskets.”
Following the fee removal on orders over $50, more than 50,000 restaurants offered promotions to take advantage of the new value proposition for customers, Migdal said. Throughout February and March, Grubhub customers will see deals from independent eateries, as well as national brands like Papa Johns, KFC, Pizza Hut, Shake Shack, Buffalo Wild Wings and more.
“Early signals show that when we remove that friction, customers order more often and add more to their carts, which benefits both diners and restaurants,” Migdal said. “If this move pushes the industry toward simpler, more transparent pricing, that’s ultimately good for consumers. But our decision was grounded in what we believe is right for our customers and our marketplace, not in anticipating competitor behavior.”
