Dewitt said the company is “absolutely looking at opportunities” to open more fulfillment centers but it’s still in early stages of assessing “the right economic model long-term.” A hybrid third-party partnership and dark store approach is intended to tailor how it can best manage inventory in suburban markets compared with dense urban areas. “It’s a question of profitability, access and also diner demand. This is the best of both worlds,” he said.

In New York City, the dark store model has gained traction among instant commerce startups like Gopuff, Gorillas Technologies GmbH and Getir which promise delivery as fast as 10 minutes. DoorDash also has dark store locations.

Grubhub’s share of the U.S. food delivery market has stagnated since the start of the pandemic while rivals have continued to gain. Grubhub’s European parent company Just Eat has been under pressure from investors to sell or spin off Grubhub in an attempt to boost Just Eat’s weak stock performance, a move Dewitt dismissed. Just Eat has fallen 20% this year.

“We have very strong underlying profitable unit economics,” Dewitt said. “This is a valuable at-scale business and JET is looking to invest and grow the company and is not focused on selling it.” 

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