Grubhub has jumped into the summer deals frenzy, following the lead of competitors DoorDash and Shipt, as on-demand delivery aggregators battle to capture a larger share of the seasonal market.
In an effort to invigorate consumer demand during the typically slow summer months, the Just Eat Takeaway.com-owned aggregator has become the latest to announce a summer savings event, with its recently announced two-week “20 Years of Deals” event timed alongside its two-decade anniversary. The event, which kicked off Wednesday (July 17), includes item giveaways from popular quick-service restaurant (QSR) brands such as McDonald’s, Taco Bell and Wendy’s, among others, as well as 20% off discounts from a range of restaurant and retail merchants.
The announcement of these deals follows on DoorDash’s bringing back its annual members-only savings event, “Summer of DashPass,” which began in June and ends Wednesday (July 24), offering different deals for each of the five weeks.
Plus, Target-owned on-demand delivery aggregator Shipt, in addition to being involved in its parent company’s “Target Circle Week,” also had its own “Summer of Savings” event, which ran from mid-June to early July, with deals on grocery, pharmacy and pet supply products, among others.
Economically, the promotions reflect a broader trend of consumers seeking cost savings. With inflation impacting disposable incomes, customers are more price sensitive. In fact, PYMNTS Intelligence’s new study “The Last Transaction: Family Spending Habits Reveal Merchant Opportunities in Retail and Travel,” found that spending is down among retailers’ best customers. At the end of 2022, consumers who are married with children in the household were spending $150 on retail products a month, more than twice the next-biggest spenders (those who are single with children, at $74). Yet by May of this year, that figure was down to $90. Aggregators, recognizing this trend of belt tightening, are tailoring their deals to appeal to budget-conscious consumers, hoping to drive frequency and volume of orders.
Additionally, such initiatives are not merely about driving sales with deal-seeking shoppers. These promotions serve as customer retention strategies in a fiercely competitive market. By offering value through deals, aggregators aim to maintain customer loyalty and deter users from migrating to competitors. PYMNTS Intelligence’s report last year, “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers,” found that 72% of consumers choose merchants for retail products based on price and discounts, and 67% said the same of merchants for grocery products.
Shipt, particularly, has noted the trend of consumers waiting for times of anticipated deals to make purchases, with Katie Stratton, the company’s chief growth officer, telling PYMNTS in an interview, “In the past year, we’ve seen engagement in our promotions with higher-than-expected volume around popular seasonal moments.”
Grubhub’s entry into the summer savings frenzy underscores the intensifying battle among on-demand delivery aggregators to capture consumer spending during a period of economic uncertainty. As inflation continues to pressure disposable incomes, these companies are leveraging strategically timed promotions to retain customer loyalty and drive order volumes. With shoppers increasingly prioritizing price and discounts, Grubhub, DoorDash, and Shipt are positioning themselves to meet the demands of budget-conscious consumers, aiming to boost engagement and secure a competitive edge in a crowded market.
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