Grubhub Rolls Out Rewards Program to Attract Customers With Free Food

The nation’s largest food delivery company unveiled a customer loyalty program.

The nation’s largest food delivery company has unveiled a customer loyalty program. Grubhub

Grubhub Inc. is hoping to keep customers coming back with its latest in-app program.

The takeout delivery service, which also owns and operates Seamless, announced its latest feature called “Perks” on Wednesday. The loyalty program will allow Grubhub and Seamless users to track and spend points under the dedicated tab in their respective apps. Customers can redeem ongoing offers, which can “total more than $400 in free food at any given time.”

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“Restaurants have always used free food as a perk for their VIP diners—to keep them happy and coming back,” said Grubhub founder and CEO Matt Maloney. “We have now extended this practice to Grubhub diners by building loyalty tools so our restaurant partners can promote their restaurants more aggressively on our marketplace and reward their best digital diners as well.”

Grubhub is partnering with several restaurants for giveaways moving forward, including Shake Shack, Just Salad, honeygrow, Pokeworks and Argo Tea, among others. To kick off the program’s launch, the company is giving away freebies from the likes of Taco Bell, with more coming throughout September. 

The move to launch a rewards program is one way for Grubhub to get diners to consolidate their orders under its own apps. The delivery company has faced fierce competition in recent months, with rivals Uber Eats, DoorDash and Postmates seeing tremendous growth and gaining ground in the market. Furthermore, an earnings report earlier this year saw analysts noting Grubhub’s struggle with customer retention and spending on orders “deteriorating.”

The company could see potential improvement by appealing to customers with its new exclusive offers and personalized rewards under Perks.

The Perks feature is available in the updated Grubhub and Seamless apps starting today.

Grubhub Rolls Out Rewards Program to Attract Customers With Free Food