This implies that there was likely some level of cannibalization and cherrypicking the promotion. However, total transactions only rose 25%, and spend was flat. This means that the company saw a lift of about 40% in weekly users among this group. ![]() Ticket Buckets Note: % of total transactions in each dollar value rangeĪ key question for any promotion is – did this cannibalize full-priced sales? Did Grubhub/Seamless customers order an extra lunch during the week of the promotion, or did they substitute a lunch they would have normally paid full price for? Looking specifically among those who took advantage of the free lunch promotion, about 70% of them each week had made a purchase from Grubhub/Seamless in the seven weeks prior. Although the promotion was generous, it does seem like many customers paid for add-ons. Even with total order value, fees, tax, and tip, 30% of orders charged on 5/18 were under $5 – and this includes later dinner orders! 24% of transactions were between $5-10. There may be no such thing as a free lunch, but Grubhub/Seamless customers got close. For Grubhub/Seamless, the average daily transaction growth the seven days before had been flat at 0%. The day purchases were charged for the promotion, however, Grubhub/Seamless saw a 131% jump in the number of transactions, versus only 20% for Uber Eats and 15% for DoorDash/Caviar (although the free lunch promotion was on 5/17, most credit cards weren’t charged until 5/18). Throughout the week before and the week after the promotion, Grubhub/Seamless trailed its major competitors in transaction growth. But did it drive sales? In today’s Insight Flash, we use our unique ability to see the actual day a transaction was charged to a user’s payment card in order to examine behavior in the NYC CSA during the promotion. ![]() Many reports labelled the promotion a logistical disaster, citing customer complaints of long wait times and cancelled orders due to overwhelmed restaurants and drivers. In mid-May, food delivery service Grubhub and its subsidiary Seamless offered a “free lunch” promotion in the NYC area, giving diners $15 off orders between 11AM and 2PM.
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