Food Delivery Services GrubHub and Seamless Now Support Apple Pay

[MacRumors]

Food delivery company GrubHub has added Apple Pay as a payment option in the latest update to its GrubHub and Seamless apps (via TechCrunch).

The company follows in the footsteps of rivals Caviar, Door Dash, and Postmates in supporting Apple's mobile payment platform, and means that users of its two apps can now pay for their food using cards registered in the native iOS Wallet app.

Originally founded in 2004, GrubHub began as a website where users could order from local restaurants offering home delivery services. It later merged with rival company Seamless and expanded to offer its own service for restaurants that don't otherwise usually deliver. Last year GrubHub processed $2.4 billion in sales, 60 percent of which was generated through its mobile apps.

The move signals another domestic win for Apple's mobile payment platform, and appears to confirm that the company's recently stated aim to aggressively expand the service both at home and abroad is making progress.

Speaking to Fortune yesterday, Apple said its mobile payment platform is gaining a million new users each week, but the company stopped short of revealing the overall number of Apple Pay users. It also said that transaction volume through the service is five times what it was a year ago, and that payment volume within apps more than doubled in the second half of 2015.

In related news, The Verge reported today that Walmart has announced its intention to partner with ride-hailing companies Uber and Lyft in order to trial a new grocery delivery service, in a move that will put it in direct competition with Amazon's recently expanded AmazonFresh service.

Customers will soon be able to place their food orders online, for Walmart staff to prepare their groceries and then call local Uber and Lyft drivers to deliver the items, at a delivery charge of between $7 to $10, which is paid to Walmart. According to the company, the pilot program will begin within the next two weeks and initially operate in Denver and Phoenix.

Article Link: Food Delivery Services GrubHub and Seamless Now Support Apple Pay

 

[jayducharme]

at a delivery charge of between $7 to $10

And people think Apple charges a lot for banks to use Apple Pay?

 

[tmiw]

Excellent.

And people think Apple charges a lot for banks to use Apple Pay?

$7-10 isn't all that much when you consider that groceries can easily be $100 or more a pop for a family.

 

[hudson1]

That this story is even posted must mean nothing happened in the world of Apple yesterday.

 

[diipii]

Excellent.



$7-10 isn't all that much when you consider that groceries can easily be $100 or more a pop for a family.

Here groceries are delivered free for a big amount. But will Apple still charge me ?

 

[rdlink]

Excellent.



$7-10 isn't all that much when you consider that groceries can easily be $100 or more a pop for a family.

Okay, so the OP's point was that Apple charges banks .15%. That's 15 cents on 100 dollars. The delivery fee for using this service is quoted at $7-$10, and it doesn't matter whether you're buying $150 worth of groceries or $35 worth of groceries. So yes, compared to Apple Pay it is a lot.

Besides, it puts money in Walmart's pockets. So no thanks.

On another note, I used Seamless for dinner last night, and was pleasantly surprised to see Apple Pay on the app. Makes ordering easier and more secure.

 

[RogerWilco]

With high-profile names like Grubhub signing on, I guess it's a wrap. Apple Pay is King of Silly Con Valley!

The grocery delivery services? We've seen this movie before.

 

[tmiw]

Okay, so the OP's point was that Apple charges banks .15%. That's 15 cents on 100 dollars. The delivery fee for using this service is quoted at $7-$10, and it doesn't matter whether you're buying $150 worth of groceries or $35 worth of groceries. So yes, compared to Apple Pay it is a lot.

A lot of places have minimums for delivery too, meaning that you might not be able to get your $35 order delivered at all.

Also, the delivery drivers still need to be paid somehow. I'm thinking that some of the $7 is getting kicked back to Grubhub but we don't know the exact terms.

 

[newyorksole]

It amazes me that some people DON'T use ApplePay.

 

[citysnaps]

Here groceries are delivered free for a big amount. But will Apple still charge me ?

Apple is not charging "you." Even though delivery may be "free," you still need to pay for your groceries, right? If you use Apple Pay to pay for your groceries via a linked credit card, why would Apple not charge the credit card company the tiny transaction fee to effect the secure transaction? Your credit card company certainly charges their much larger transaction fee.

 

[RogerWilco]

Apple is not charging "you." Even though delivery may be "free," you still need to pay for your groceries, right? If you use Apple Pay to pay for your groceries via a linked credit card, why would Apple not charge the credit card company the tiny transaction fee to effect the secure transaction? Your credit card company certainly charges their much larger transaction fee.

That "tiny transaction fee" is at the margin, and in economics everything of importance happens at the margins. We live in a world of ZIRP central banking and over $10T of debt is now held at negative interest rates. In this economic Twilight Zone, a 0.15% transaction fee is a huge burden.

 

[citysnaps]

That "tiny transaction fee" is at the margin, and in economics everything of importance happens at the margins. We live in a world of ZIRP central banking and over $10T of debt is now held at negative interest rates. In this economic Twilight Zone, 0.15% is a huge burden.

Goods and services vendors are not required to use Apple Pay, or any other payment service. Clearly, for many, it makes a lot of sense and is not a burden as it provides benefits that outweigh the tiny additional cost.

 

[SpiderDude]

GrubHub...

I'll give you that. You americans are great at naming things.

Except for that rice brand that gives me the feels tho...

 

[ThunderSkunk]

Use of the word "grub" to describe food is repulsive.

 

[lordofthereef]

Grubhub is actually a pretty damn big one, at least for big cities. Super convenient.
[doublepost=1464967049][/doublepost]

GrubHub...

I'll give you that. You americans are great at naming things.

Except for that rice brand that gives me the feels tho...

Good old Uncle Ben
[doublepost=1464967166][/doublepost]

That "tiny transaction fee" is at the margin, and in economics everything of importance happens at the margins. We live in a world of ZIRP central banking and over $10T of debt is now held at negative interest rates. In this economic Twilight Zone, a 0.15% transaction fee is a huge burden.

Cost of operating. Frankly, a small move like this may be the difference of a person placing an order or not. My friends in Sac and Sand Fran virtually don't order out unless it's on grubhub. Some places actually charge a carry out fee that they can easily bake into something like this and often times people don't mind paying it for the conveneince. Let the customer carry that burden. If you have a good product they will be happy to.
[doublepost=1464968147][/doublepost]

Excellent.



$7-10 isn't all that much when you consider that groceries can easily be $100 or more a pop for a family.

I think what a lot of people are missing is the convenience factor. That and the consideration that some folks, particularly in large cities, may not drive or they may be far enough away from the grocery store that the $7 is either a wash or savings, especially when factoring in the time they spend.

We live right down the street from a Stop & Shop (it's exactly 3.5 miles away) and yet I see the peapod truck (their delivery service) stopping by at least half a dozen places, likely more, every week. Their delivery fees are similar to these. Unsure about this particular setup but peapod allows subscriptions to stuff you buy every week (ie milk, eggs, cereal, etc) so you don't even have to think about restocking the pantry on items that you know you consume on a weekly, biweekly, monthly, etc. basis.

TL;DR: a lot of people fall into the mindset that if a service is not worth it to them it is therefore not worth it to anyone. We come from all walks of life with different priorities and widely different sized pocket books. True, a service like this likely wouldn't make it in rural Nebraska, but that is likely not the target audience.

 

[ksnell]

Excellent.



$7-10 isn't all that much when you consider that groceries can easily be $100 or more a pop for a family.

Even in your scenario where you are buying $100 worth of groceries, a 10% fee is justified?

Granted, I do not know what is average for this industry but that seems like a hefty convenience fee. And what happens when all the perishables are delivered rotten?

 

[ThunderSkunk]

It amazes me that some people DON'T use ApplePay.

I havent yet found an opportunity to use it.
...which, when I think about it, means that I spent the last year with the nearly hourly inconvenience of stumbling over a passcode screen to access my device, in order to protect my credit card information, which it holds for my convenience, for the possibility that it may save me 10 seconds in line at a store someday.

Hm.

 

[Kaibelf]

Use of the word "grub" to describe food is repulsive.

Somehow I knew the Dowager Countess would end up on these boards eventually.

I havent yet found an opportunity to use it.
...which, when I think about it, means that I spent the last year with the nearly hourly inconvenience of stumbling over a passcode screen to access my device, in order to protect my credit card information, which it holds for my convenience, for the possibility that it may save me 10 seconds in line at a store someday.

Hm.

I you were familiar with how Apple Pay functions, you would know that you hold up the phone to the terminal and then hold your thumb over the sensor, and are never required to unlock your phone with a passcode. You'd also have mentioned that the NFC terminal in play automatically wakes up the phone with a prompt for this function. If you're going to attack Apple, at least be honest in the process.

 

[ThunderSkunk]

.

A woman after my own heart.

If you were familiar with how Apple Pay functions, you would know that you hold up the phone to the terminal and then hold your thumb over the sensor, and are never required to unlock your phone with a passcode. You'd also have mentioned that the NFC terminal in play automatically wakes up the phone with a prompt for this function. If you're going to attack Apple, at least be honest in the process.

If you go back and reread the post you are replying to, you will see that you made a basic reading comprehension error, then responded to that error with some hostility and accused me of being dishonest.

I'll leave it up to you to figure out & correct.

 

[boat]

Delivery.com has had Apple Pay for 7 months btw! Maybe mention them too in the "The company follows in the footsteps of rivals Caviar, Door Dash, and Postmates" section?

 

[RogerWilco]

Goods and services vendors are not required to use Apple Pay, or any other payment service. Clearly, for many, it makes a lot of sense and is not a burden as it provides benefits that outweigh the tiny additional cost.

And you are missing the big picture. The Apple Pay fee comes out of the bank's hide, and that skin is awfully thin these days. If regular accounting rules were in effect, half of them would be belly-up.

 

[citysnaps]

And you are missing the big picture. The Apple Pay fee comes out of the bank's hide, and that skin is awfully thin these days. If regular accounting rules were in effect, half of them would be belly-up.

And yet there are over 1,200 banks and credit unions (in the US alone), large and small, signed up already with Apple Pay. Not missing the big picture.

 

[a.gomez]

Never thought Seamless checkout was that big of a deal. We also only use one card on our account for everyone in the home - it does not matter what device we are on. Even my niece just logs on and orders her breakfast/lunch when she comes to visit off the account from her laptop. Why ApplePay has not taken off - it is always trying to convince people that it simplifies something that was not complicated in the first place.

FreshDirect is 5.99 delivery in Manhattan and they are an actual grocery store.... not sure who buys fruit and veggies at Walmart. Does Walmart even have a fresh Meat section - that is frightening.

 

[MasterRyu2011]

Never thought Seamless checkout was that big of a deal. We also only use one card on our account for everyone in the home - it does not matter what device we are on. Even my niece just logs on and orders her breakfast/lunch when she comes to visit off the account from her laptop. Why ApplePay has not taken off - it is always trying to convince people that it simplifies something that was not complicated in the first place.

FreshDirect is 5.99 delivery in Manhattan and they are an actual grocery store.... not sure who buys fruit and veggies at Walmart. Does Walmart even have a fresh Meat section - that is frightening.

http://www.walmart.com/browse/food/beef/976759_1071964_976796_1001441

 

[keysofanxiety]

a lot of people fall into the mindset that if a service is not worth it to them it is therefore not worth it to anyone. We come from all walks of life with different priorities and widely different sized pocket books.

This is so well articulated and applicable to almost any scenario.