Discuss the risks that Matt Maloney and Mike Evans took when they joined forces to start Grubhub.
The risks that Matt Maloney and Mike Evans took when they joined to start Grubhub are customer target and technology. They are one of the pioneers of the online food ordering industry so they faced a major barrier where most people get used to the traditional way of takeout orders. It’s not easy to change customer behaviors. Also, the main goal is to get people using their platform to make orders. However, many adults still have difficulties accessing their phones due to a lack of technology skills.
Which of the five business environments are the most relevant for Grubhub? And Why?
Five business environments are the economic and legal environment, the technological environment, the competitive environment, and the social environment. The one that was most relevant for GrubHub has to be the tech side of the business. By utilizing the everyday tech we use, GrubHub became a bridging network that connected customers and the restaurants which had be too simplified and convenient for both. GrubHub has to be on point at all times to be able to observe and anticipate customers’ needs. This means the tech used to do this has to be up to date constantly to meet the needs of the customer
What are the risks and benefits of becoming an entrepreneur as opposed to working for others? Discuss what GrubHub can do to keep growing their business.-
As we all know business is all about taking risks. Some will reward you and some will have you losing money and clientele. Some risks of becoming an entrepreneur are the responsibility, abandoning the steady paycheck and competition. And the benefits are control and a flexible schedule. In order to keep their business growing, Matt and Mike had to constantly keep their app updated to improve their offerings. Plus they had to do more online and offline marketing due to competition.
What is the major challenge presented by Amazon and Uber to Grubhub’s business?-
As Grubhub had been developing their business for a few years, competition was popping up in the form of Amazon and Uber. However, GrubHub had more than 25 thousand restaurants in their network and more than 5 thousand of those had no delivery fees. The kicker for Grubhub was that there were no marked-up pricing, keeping the same prices seen on the app by the customers.
Does the restaurant industry seem like a stable option for aspiring entrepreneurs to pursue?
I do believe that the restaurant industry is a stable market for up and coming business owners. However, a restaurant is only as good as the product and customer catering.
Discuss the risks that Matt Maloney and Mike Evans took when they joined forces to start...