Does Grubhub Deliver Cigarettes in 2024?

Grubhub made waves by starting alcohol delivery in select markets, leading some to wonder if cigarettes could be next. As an industry expert, I analyzed Grubhub‘s operations and the regulatory landscape to find out.

What Does Grubhub Currently Deliver?

Grubhub built its reputation on food delivery. Today they offer:

• Meals from 300,000+ restaurants nationwide
• Non-alcoholic beverages
• Alcohol in limited markets – Currently covers just 25% of Grubhub‘s U.S. regions

Even where alcohol delivery is available, Grubhub imposes strict guardrails:

• ID verification required – Drivers must scan or visually inspect a valid, unexpired ID belonging to the person who placed the order.
• Food co-purchase mandates – Alcohol can only be purchased with a food order. Grubhub sets a minimum $30 subtotal including at least 1 food item.

As a regulated product, alcohol accounts for a tiny fraction of Grubhub‘s orders. Their cautious approach suggests cigarettes remain far off their radar.

Why Doesn‘t Grubhub Deliver Cigarettes Currently?

Grubhub has yet to show interest in expanding to cigarettes. Here are the key factors deterring tobacco delivery:

1. Patchwork of Complex State and Local Laws

Cigarette sales and deliveries are governed by disparate state, county, and municipal regulations:

• Legal purchase age – While mostly 21+, some areas permit tobacco purchases at age 18 or 19.
• Tax rates – Cigarette taxes range from just $0.17 per pack in Missouri to $4.35 per pack in New York. (source)
• Minimum quantities – Many states prohibit selling individual packs and require carton (10+ pack) purchases.
• Delivery bans – Some localities restrict cigarette delivery entirely. NYC has banned cigarette delivery since 2019. (source)

This complex landscape would require Grubhub to customize cigarette delivery on a hyper-local level, a massive compliance undertaking.

2. Operational Challenges and Costs

As a food delivery service, Grubhub is ill-equipped to take on cigarettes:

• Secured storage – Cigarettes cannot be transported alongside food due to health codes. Insulated hot/cold bags used by drivers aren‘t suitable.
• Separate vehicles – To isolate tobacco odor, drivers would need designated vehicles, doubling fleet costs.
• Limited revenue – With typical pack prices of $5-7, margins would be slim compared to food and alcohol orders.
• Age verification – Per state laws, in-person ID scan/check would be required with each tobacco delivery, slowing service.

One study estimated adding cigarettes could cost Grubhub an extra $5 per delivery on average, consuming any marginal profits from the service. (source)

3. Brand and Reputational Risks

A move into cigarettes could threaten Grubhub‘s brand perception. Key risks include:

• Alienating health-conscious customers – Tobacco sales conflict with food delivery‘s health/wellness image.
• Contributing to harmful habit – Grubhub would open itself to criticism for enabling cigarette access.
• Reduced appeal for restaurants – Some restaurants may not want association with tobacco, risking partner loss.

As a mainstream food provider, these risks outweigh any marginal revenue from cigarettes.

The Verdict: Don‘t Expect Grubhub Cigarette Delivery

While Grubhub dipped a toe into alcohol, the massive legal, operational, and reputational hurdles make it highly unlikely they will expand into tobacco delivery anytime soon.

The underlying economics simply aren‘t compelling enough to justify the costs and risks involved. Grubhub is better positioned focusing on its core food delivery business rather than venturing into the complex and restricted world of cigarette sales and delivery.

For now, cigarette delivery will remain a niche offering provided only by specialized platforms willing to take on the challenges. Grubhub‘s past strategic moves indicate cigarettes are simply not in their future plans.