Grubhub to drop delivery and service fees on orders above $50 in US [Yahoo! Finance]
Uber Technologies, Inc. (UBER)
Last uber technologies, inc. earnings: 2/6 04:05 pm
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Source: Yahoo! Finance
According to a Bloomberg report, the move is aimed at drawing customers away from rivals DoorDash and Uber Technologies. The new structure will initially appear for limited users, with a broader availability planned from 2 February. In an interview with the publication, Grubhub CEO Howard Migdal said the initiative is intended to draw in fresh customers and drive larger orders. He added that the company expects the change will enable customers save “hundreds of millions of dollars per year” paid in fees, calling them the “biggest pain point” for the food-delivery sector. Migdal noted that for orders above $50, the average delivery and service fee across competing apps is approximately $13. He added that 81% of Grubhub users have at some point filled their basket and then abandoned the purchase after seeing the total fees. In addition, Migdal stated the choice to waive fees on orders above $50 reflects a focus on building long-term customer loyalty rather than maximising n
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