Caviar VS Grubhub | Key Differences In Those Business Models

Both Caviar and Grubhub is the leading food delivery service provider and their business module is quite identical. The only key difference is; you have to be at least 19 years or older to apply for the Grubhub driver while the minimum age requirement for Caviar is 18. However, to apply for Caviar you will require a minimum of 2 years of experience.     

Key Takeaways

• Caviar is highly selective when it comes to restaurants and couriers
• On average, a caviar customer can earn $79,000 which is $8K more than Doordash and $9K more than Grubhub
• At Caviar, a guest spends an average of $43 per order and $110/month which is the highest for a food delivery service provider
• Grubhub is popular in cities like Boston, Chicago, New York, etc.
• Since 2013, Grubhub has acquired 12 food delivery startups including Eat24, Foodler, Seamless, etc.
• Grubhub allows restaurants to use their own stuff to deliver the foods which are not possible in Caviar
• The fees of Grubhub are in-between 15-30% compared to Caviar’s 25%

Caviar

The main business model of caviar is to carve out their own market then compete with other big fishes in this industry. Like the name itself, Caviar looks for more of an upscale dining experience. Therefore, this company is highly selective when it comes to restaurants and couriers. So, if you are ordering foods from Caviar, one thing is certain that you won’t get any greasy spoons and drive-thru fare with the food delivering service. Moreover, Caviar has more of a small service area compared to other food delivery service providers. You will get service from Caviar only in 11 major metropolitan areas. Caviar takes a 25% fee which is an average rate for this industry. However, depending on the average monthly spending you can cut off other service charges. On average, a caviar customer can earn $79,000 which is $8K more than Doordash and $9K more than Grubhub. So, a guest spends an average of $43 per order and $110/month which is the highest for a food delivery service provider. It means Caviar is more suitable for upper-scale restaurants in major cities of the USA.

1. User Ratings: 3/5

2. Fees: 3/5

3. Customer Spending: 5/5

4. Market Share: 1/5  

Grubhub

Grubhub is dominating the market in Boston, Chicago, New York, and Philadelphia with its business strategy of acquiring small third-party delivery startups. Since 2013, Grubhub has acquired 12 food delivery startups including Eat24, Foodler, Seamless, etc. But, the overall share of Grubhub in the food delivery industry drops from 38% to 26.7% because of the rapid growth of DoorDash. Grubhub may have lost the percentages of shares but they have an increase in the user’s and customer’s numbers across 1,700 cities and 80,000 restaurants. Grubhub allows restaurants to use their own stuff to deliver the foods. This is where Grubhub is unique compared to other service providers. Moreover, this feature is more convenient for restaurant owners because it gives them more control over their delivery operations. Another important facility of Grubhub is a point of sale (POS) integration. This feature makes it an all-in-one transition so that orders coming via the Grubhub website or app will automatically pop into the queue of the restaurant just like the wait staff of your restaurant entering it in a POS device. The fees of Grubhub are in-between 15-30%. So, if you are a restaurant owner then you should consider the service of Grubhub because of the marketing power and convenience of Grubhub’s ordering system.

1. User Ratings: 4/5

2. Fees: 4/5

3. Customer Spending: 3/5

4. Market Share: 4/5

Who Provides Better Food Delivery Service?

Grubhub is on top of the contest when it comes to food delivery. Grubhub gets more food orders than any other platform in this industry. Grubhub offers delivery at more than 80,000 restaurants which is also more than any other food delivery platform. So it’s quite clear that Grubhub has quite a big edge over Caviar in terms of popularity.

Caviar

We already know that Caviar doesn’t have as many users as Grubhub but they ensure some serious driver benefits in terms of deliveries. This is because Caviar has a $15–$25 order minimum and during the peak demands order minimums can become nearly double. So larger order means bigger tips, and bigger tips mean more income for the drivers.

Grubhub

Grubhub has more users and customers so the drivers of Grubhub will automatically have more demand and deliveries. But the problem with Grubhub is they don’t have any condition for minimum order as well as no surge pricing. So it is better for the customer but might cost the drivers during the high demand times at lunch and dinner.

Who Pays Drivers More?

Grubhub pays the drivers more compared to Caviar. Therefore, Grubhub is the first choice for most delivery drivers. On average Grubhub offers a minimum hourly wage of $12.50 and they have the highest demand in metropolitan cities. Caviar has fewer users, therefore, fewer orders which results in an inconsistent hourly income and it varies from $7 to $20 per hour on weekends.

Grubhub pays its drivers on weekly basis and they don’t have any instant pay feature. They send payments each week on Thursday via direct deposit. Caviar on the other hand supports an instant pay feature. You have to use the Square Cash app to start gating Caviar payments instantly after completing every delivery.

Caviar Driver App

You have to download the Caviar driver app from the company’s website. This app has features like set availability, accept orders, turn-by-turn navigation, delivery instructions, and a payment dashboard. You can easily track your earnings from the payment dashboard of the app. The app supports both Android and iOS platforms which is very convenient.

Download The Caviar Driver App On iOS Device

Since the app is not available in the app store you have to download it from a custom link. Follow the below steps:

1. First, visit the Caviar Driver app download link         

2. Wait for the app to download on your device

3. Once the download is completed click on the app

4. “Untrusted Developer” dialog box will appear

5. Now go to Settings > General > Profile & Device Management from your iOS device

7. Click on the “Caviar Inc.” profile and set the permission to “Allow”

8. Finally, the app is ready for use on your iOS device

Download The Caviar Driver App On Android Device

1. It’s easier to download Caviar app on android devices. Check the below steps:

2. First, visit the Google Play Store from your Android device

3. Now type Caviar on the search bar and from the available result selects the Caviar app

4. Click on the install button and wait for the app to install on your device

5. Once the installation is complete the app is ready for use

Grubhub Driver App

Like the Caviar driver app, the Grubhub driver app is only available on their website. So you have to manually download it for your iOS and Android device. Same as the Caviar app, the Grubhub app also has features like accept orders, turn-by-turn navigation, delivery instructions, payment dashboard, etc.  

Download the Grubhub Driver App on iOS Device

1. First, you have to download the app from this link

2. Wait for the app to download on your device

3. Once the download is completed click on the app

4. “Untrusted Developer” dialog box will appear

5. Now go to Settings > General > Profile & Device Management from your iOS device

6. Click on the “Grubhub” profile and set the permission to “Allow”

7. Finally, the app is ready for use on your iOS device

Download The Grubhub Driver App On Android Device

1. First, visit the app download link from your Android device

2. Now click on the “Download Android” link

3. Then click on the “Download” from the Popup dialog box

4. Once the download is completed double click on the download package

5. Click on the “Install” button and it will take a few times to install the app on your device

Final Thought

From the above discussion, it is quite clear that Grubhub is the clear winner thanks to its seamless onboarding, guaranteed hourly minimums, and high demand from the consumers. The main problem with Caviar is they are only available in selected major cities. But you can keep Caviar as a good backup option if you are living in San Francisco, Boston, New York, or Philadelphia.      

References:

1. https://en.wikipedia.org/wiki/Caviar
2. https://en.wikipedia.org/wiki/Grubhub

Last Updated on October 26, 2022 by Magalie D.