Sauce, a first-party ordering and retention platform, will become a direct ordering and delivery partner for Grubhub merchants, the two companies announced today. The deal lets restaurants run their own branded sales channel while Grubhub's nationwide driver network handles fulfillment.

That split matters for operator economics. Third-party marketplaces typically own the customer relationship and the transaction data that comes with it. Here, Sauce powers the customer-facing side — ordering, websites, marketing — while Grubhub connects merchants with drivers for last-mile delivery. Merchants keep ownership of customer data and relationships, the companies said.

Li-ran Navon, CEO and co-founder of Sauce, framed the pitch around growth and loyalty. "Restaurants deserve online order and delivery technology that grows their business, strengthens connections with their customers, and delivers a best-in-class ordering experience," Navon said. "We're excited to partner with Grubhub to give restaurant operators a powerful direct ordering solution backed by one of the most trusted delivery networks in the industry."

What does the partnership actually include?

Eligible Grubhub merchants gain access to a bundled stack:

• Sauce's branded online ordering platform
• Direct ordering websites optimized for mobile and SEO
• Integrated loyalty, marketing and AI-powered customer engagement tools
• Ownership of customer data and relationships
• Delivery fulfillment through Grubhub's national logistics network
• Exclusive promotional opportunities and onboarding incentives

Onboarding incentives are the pricing lever here — the companies didn't disclose terms, but the structure signals they're courting merchants weighing the cost of building direct channels versus staying fully on marketplaces.

Rachel Winkelman, vice president of enterprise partnerships at Grubhub, positioned the deal as consolidation of tools rather than a new marketplace play. "By combining Sauce's direct ordering technology with Grubhub's nationwide delivery network, we're providing merchants with an end-to-end solution that helps drive sales, streamline operations, and deliver a great customer experience," Winkelman said.

Why pair direct ordering with a marketplace's network?

The mechanism is straightforward. Direct channels usually carry better margins per order, but delivery logistics are expensive for independents to build alone. Marketplaces solve fulfillment but take the customer with it. This partnership tries to sell both at once: Sauce's ordering stack on the front end, Grubhub's drivers on the back end, and the merchant's name — not the marketplace's — on the receipt.

The announcement lands as restaurants push harder on first-party channels while still needing dependable delivery at scale. Whether merchants bite will depend on the final pricing, which the companies haven't detailed; the onboarding incentives and promotional packages will likely be the first test of adoption.