Grubhub, a Chicago-based aggregator, has announced its collaboration with Amazon to bring the revolutionary ‘Just Walk Out’ checkout technology to on-campus convenience stores, targeting Gen Z students and aiming to secure their long-term loyalty. The first college to offer this innovative checkout option will be Loyola University Maryland.
The partnership allows consumers to utilize the checkout method by scanning a QR code in the Grubhub app upon entering the on-campus shops. To take advantage of this frictionless technology, students must download the Grubhub app. By incorporating Amazon’s advanced computer vision system, Grubhub aims to enhance the dining experience for students while strengthening its relationship with campus partners through cost-saving technology.
The move comes as aggregators, such as Grubhub, recognize the growing interest in on-demand food delivery among Gen Z consumers. According to a recent PYMNTS survey, 52% of Gen Z respondents reported using an aggregator to place an order at least once in the last six months, underscoring the importance of targeting younger diners for long-term retention.
Grubhub’s Senior Director of B2B Marketing, Madeline Maguire, emphasized the value of acquiring young consumers early on and providing a superior customer experience. By doing so, Grubhub hopes to solidify its position as their delivery provider of choice even after they graduate from college.
While Grubhub trails behind category leaders DoorDash and Uber Eats in terms of overall usage, the partnership with Amazon’s ‘Just Walk Out’ technology is a strategic move to boost market share and better meet the preferences of consumers. A study featured in PYMNTS’ “Digital-First Banking Tracker® Series Report” revealed that 66% of consumers prefer self-service models over staffed checkout lanes, highlighting the importance of reducing checkout friction to win consumer loyalty.
As the competition intensifies, the battle for the loyalty of Gen Z students has become a top priority for aggregators. DoorDash, for example, recently teamed up with education technology company Chegg to offer college students a free DashPass Student membership as part of Chegg’s Study Pack program.
With the integration of Amazon’s advanced checkout technology, Grubhub is poised to reshape the on-campus dining experience, attract Gen Z consumers, and solidify its position in the increasingly competitive market of on-demand food delivery.
What is the ‘Just Walk Out’ technology?
The ‘Just Walk Out’ technology developed by Amazon is an advanced checkout system that utilizes computer vision to enable a frictionless shopping experience. It allows consumers to enter a store, grab the desired items, and leave, without the need for traditional checkout lines or cashiers.
How does Grubhub’s partnership with Amazon’s ‘Just Walk Out’ technology benefit college students?
By leveraging Amazon’s ‘Just Walk Out’ technology, Grubhub aims to enhance the dining experience for college students by offering a seamless checkout process within on-campus convenience stores. This partnership enables students to utilize the convenience of the Grubhub app and eliminates the need for manual checkout, saving time and effort.
Why are aggregators targeting Gen Z consumers?
Gen Z consumers represent a significant market segment with a strong interest in on-demand food delivery. By targeting and acquiring Gen Z consumers early on, aggregators like Grubhub can build long-term loyalty and establish themselves as the go-to delivery provider for this demographic as they transition into adulthood.
How does reducing checkout friction contribute to consumer loyalty?
A study featured in PYMNTS’ “Digital-First Banking Tracker® Series Report” found that 66% of consumers prefer self-service models over staffed checkout lanes. By implementing technologies like Amazon’s ‘Just Walk Out,’ which simplifies the checkout process, aggregators like Grubhub can provide a smoother and more convenient experience to users, ultimately increasing customer satisfaction and loyalty.
What are the competing aggregators in the food delivery market?
In the food delivery market, DoorDash and Uber Eats are the leading competitors, with DoorDash holding the highest usage rate among aggregator customers (77%) and Uber Eats following closely behind (49%). Grubhub currently trails behind these two category leaders but is actively seeking to expand its market share through strategic partnerships and innovative technologies.