GrubHub’s Founder Grew Revenue By 300% One Week After Switching From A Subscription Model To A Transactional Model
October 24, 2022
On the show today we have our first guest who has taken a company public. Mike Evans founded GrubHub in his spare bedroom and grew it into a multi-billion-dollar household name. Today’s case study looks at how GrubHub grew their revenue by 300% in one week after switching from a subscription based model to a transactional model, and how you can evaluate which revenue model would create more value in your own business and attract repeat customers.
Since leaving GrubHub post-IPO in 2014, Mike more recently founded Fixer.com, an on-demand handyperson B-corp that trains its W-2 employees from scratch. For more insights from Mike, order his book, Hangry, releasing this November on Audible and wherever books are sold.
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Connect with Mike:
- Get Mike’s new book Hangry: A Startup Journey
- https://mikeevans.com/
- https://fixer.com/
- https://www.linkedin.com/in/authormikeevans/
- https://www.facebook.com/mevans314159/
- https://www.instagram.com/m_evans314/
- https://twitter.com/m_evans
Favorite Takeaways From This Episode:
- How Mike Evans left his cubicle and started Grubhub.
- “I didn’t want to just do my job, I wanted to do something more.”
- Mike defines the transition from hobby to business as when you make your first dollar.
- What the first year of signing restaurants up looked like, and why he needed to double his revenue.
- The 2 technical changes Mike made to increase his revenue by 300% in one week.
- “If you create value for a customer, you charge them. And if you don’t create value for a customer, you don’t charge them.”
- How to not pour water into a leaky bathtub.
- The distinction between a business + a good business.
- Why food delivery services have to implement service fees now when they didn’t before.
- “It’s very very expensive to let your business slip into non-differentiation because then the only thing you can do is compete on advertising dollars.”
- “It was like an overnight success 2 years in the making.”
- How he got the news about the transaction model change out to the restaurants + get new restaurants on board.
- “Whatever channel people choose to engage with your company in, stay in that channel.”
- How can you get customers to choose to come back to you?
- Why Mike decided to implement a subscription model into his new business, Fixer.com.
⚡Lightning Round⚡
- What is the first thing you do when you get up in the morning?
- What is one thing about you that surprises most people?
- What is one restaurant you could order from every day without ever getting tired of it?
What Did You Think?
Did you enjoy this episode or the insight shared? Let us know on Instagram @cubicletoceo!
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