Consumer preferences are changing, with a growing demand for quick deliveries of various products within an hour. The traditional e-commerce model of next-day or two-day deliveries is being replaced by the convenience of quick commerce, where shoppers can receive their orders within one to two hours. This shift has led to the rise of quick commerce, a concept that was once seen as a cash-burning venture by venture capitalists but is now an expectation among consumers 24/7.
Thanks to the use of apps and strategic partnerships, consumers now expect instant access to a wide range of products, including food from restaurants and groceries. The focus on quick commerce has also opened up new revenue streams, such as Retail Media, which leverages the shopper base to drive advertising revenue.
A recent development in the quick commerce space is the partnership between GrubHub and Koddi, aimed at boosting sales through Retail Media. GrubHub, a leading online food delivery platform in the US, has established itself as a key player in the quick delivery market with 33 million+ users and 375,000 merchants across over 4,000 cities. One of the standout features of GrubHub is its partnership with Amazon, which allows Amazon Prime members to access Grubhub+ and enjoy benefits such as $0 delivery fees, lower service fees, and exclusive deals on Prime Day.
The collaboration between GrubHub and Koddi has led to the launch of the GrubHub Ads Network, which enables restaurants to promote their businesses through targeted advertising. By partnering with Koddi, GrubHub aims to compete with other major players in the industry like Uber Eats and DoorDash, who have established large ad businesses catering to restaurants. The ads will be strategically placed to reach potential customers at key decision points, such as when they are searching for specific cuisines or local restaurants.
Eric Brackmann, VP Commerce Media for Koddi, shared that the partnership will provide restaurants with access to GrubHub’s vast audience and help them promote their establishments effectively. The platform will offer insights into key performance metrics and allow advertisers to optimize their budgets and bids for better results. By leveraging the Koddi platform, advertisers can engage with different audience segments and drive higher performance through targeted advertising.
The ultimate goal of the partnership between GrubHub and Koddi is to create a seamless media network that offers end-to-end solutions for advertisers. This includes onsite, offsite, and in-store advertising opportunities to help merchants and brands grow their businesses through Grubhub. As quick commerce continues to evolve, Retail Media is expected to play a crucial role in driving profitability for platforms like GrubHub, providing more opportunities for merchants to reach consumers and maximize their advertising potential.