Grubhub

Grubhub Inc.
Public
Traded as NYSE: GRUB
Russell 1000 Component
Industry Online platform for restaurant pick-up and delivery
Founder
  • Matt Maloney
  • Mike Evans
Headquarters Chicago, Illinois, United States
Area served
 United States
Key people
  • Brian McAndrews
  • (Chairman of the Board)
  • Matthew Maloney
  • (Co-Founder & CEO)
Revenue Increase US$ 683.07 million (2017)
Increase US$ 89.75 million (2017)
Increase US$ 98.98 million (2017)
Total assets Increase US$ 1.54 billion (2017)
Total equity Increase US$ 1.12 billion (2017)
Number of employees
 2,125 (Feb. 16, 2018)
Subsidiaries Seamless
LevelUp
Website Grubhub.com
Footnotes / references
[1]

Grubhub Inc. is an online and mobile food-ordering company that connects diners with local restaurants. Based in Chicago, the company has more than 14 million active diners, and approximately 80,000 restaurant partners in over 1,600[2] cities across the United States and the United Kingdom.[3]

Overview

In 1999, Seamless was founded by two lawyers, Jason Finger and an associate, unsatisfied with traditional paper menus.[4] In 2004, Grubhub was founded by Matthew Maloney and Michael Evans, two web developers looking for an alternative to paper menus.[5]

In 2013, Grubhub and Seamless merged.[6] The combined organization, Grubhub Seamless, went public in April 2014 and trades on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".[7]

Grubhub's executives include:[8]

  • Matt Maloney, president and chief executive officer
  • Adam DeWitt, chief financial officer
  • Stan Chia, chief operating officer
  • Maria Belousova, chief technology officer
  • Sam Hall, chief product officer
  • Margo Drucker, senior vice president, general counsel and secretary
  • Kelley Berlin, senior vice president of people
  • Brian McAndrews, chairman of the board

As of Q4 2017, the company processes more than 392,500 orders/day and has more than 14 million active diners.[9]

Brands

Grubhub's portfolio of brands includes OrderUp, Seamless, AllMenus, MenuPages, Restaurants on the Run, DiningIn, Delivered Dish, Eat24 and LAbite. Diners who order through Grubhub's website or mobile apps—for iOS and Android devices—can pay with cash, credit or PayPal. Seamless is an online and mobile food ordering platform that connects diners with local restaurants. It serves consumer diners as well as corporate businesses in the U.S. and London.

MenuPages was acquired by Seamless in September 2011.[10] Allmenus was acquired by Grubhub in September 2011.[11] DiningIn, an online ordering and food delivery company based in Brighton, Massachusetts, was acquired by Grubhub in February 2015. DiningIn operates in Boston, Chicago, Dallas, Philadelphia, and the Twin Cities.[12] Restaurants on the Run, a corporate food delivery company based in Aliso Viejo, California, was acquired by Grubhub in February 2015, operating in Orange County, San Diego, Inland Empire, Los Angeles, San Francisco, Las Vegas, Seattle, Houston, Tulsa & Chicago.[13] OrderUp operates in many large cities of the United States and offers same services as other food deliveryservices like UberEats and Providence Food Delivery.

In December 2015, Grubhub acquired Delivered Dish, a restaurant delivery service in seven markets across the Pacific Northwest and Southwest, including Denver, Las Vegas, San Diego, Portland, El Paso, and Albuquerque.[14] LAbite, one of the largest restaurant delivery services in the U.S., was acquired by Grubhub in May 2016.[15] Most of LAbite's volume comes from the Greater Los Angeles area.[16]

In August 2017, Grubhub entered into an agreement to acquire Eat24 from Yelp for $287.5 million, subject to regulatory review.[17]

In October 2017, Grubhub announced that it completed its acquisition of Eat24.

In July 2018, Grubhub acquired LevelUp for $390 million cash.[18]

In September 2018, Grubhub entered into an agreement to acquire Tapingo for $150 million, subject to regulatory review.[19]

History

Grubhub history

Chicago-based Grubhub was founded in 2004 by Mike Evans and Matt Maloney, looking for an alternative to paper menus.[20] Two years later, in 2006, Maloney and Evans won first place in the University of Chicago Booth School of Business's Edward L. Kaplan New Venture Challenge with the business plan for Grubhub.[21]

In November 2007, Grubhub secured $1.1 million in Series A funding (led by Amicus Capital and Origin Ventures), which enabled market expansion into San Francisco and New York.[22]

In March 2009, Grubhub earned $2 million in Series B funding, led by Origin Ventures and Leo Capital,[23] which was followed by $11 million in Series C funding, led by Benchmark Capital in November 2010.[24] $20 million in Series D funding was raised (led by DAG Ventures) in March 2011.[25]

In September 2011, Grubhub secured $50 million in Series E funding and acquired New York-based competitor Dotmenu, the parent company of Allmenus and Campusfood.[26] In December 2015, Grubhub acquired Delivered Dish, a restaurant delivery service in seven markets across the Pacific Northwest and Southwest, including Denver, Las Vegas, San Diego, Portland, El Paso and Albuquerque.[27] LAbite, a Los Angeles-based restaurant delivery service, was acquired by Grubhub in May 2016.[28]

Seamless history

In 1999, New York lawyer Jason Finger founded SeamlessWeb to provide companies with a web-based system for ordering food from restaurants and caterers. Six years later, in 2005, SeamlessWeb introduced a free ordering service to consumer diners to complement the existing corporate-ordering service.[29] In April 2006, SeamlessWeb was acquired by Aramark and integrated into its Food, Hospitalities, and Facilities segment.[30]

Jonathan Zabusky was named president of Seamless in 2009, and by June 2011, Seamless was re-privatized, as Boston-based Spectrum Equity Associates invested $50 million for a minority stake in the company from Aramark. The company then changed its name from SeamlessWeb to Seamless.[31]

In September 2011, Seamless acquired MenuPages,[32] and in February 2012, Seamless introduced the industry's first iPad app.[33]

Grubhub and Seamless merger

In May 2013, Grubhub and Seamless announced that they were merging, with Seamless representing 58% of the equity and GrubHub representing 42% of the equity of the combined business; the merger was finalized in early August 2013.[34]

IPO

Grubhub went public in April 2014 and trades on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".[35]

Delivery

In June 2014, Grubhub began offering delivery for restaurants that don't operate their own delivery service. The company is now delivering in more than 50 markets across the U.S.[36] (publicly announced markets include Atlanta, Phoenix, Philadelphia, Los Angeles, San Francisco/Bay Area, D.C., Southeast Florida, Portland, Denver, Pittsburgh, Detroit, San Diego, Brooklyn/Queens (NYC), Chicago and Las Vegas). More than 5,000 restaurants are now using Grubhub delivery. [37][38]

Grubhub's UK competitors are Deliveroo, Just Eat, and Hungryhouse. In the US, its competitors include UberEATS, Postmates, Amazon Restaurants and Online Restaurants.[39]

Controversy

On November 10, 2016, after the victory of President-elect Donald Trump in the general election, Grubhub President and CEO Matt Maloney, sent a company-wide memo to employees saying that he rejected "nationalist, anti-immigrant and hateful politics of Donald Trump". The Washington Times reported that Maloney "unleashed a political screed after the Nov. 8 election and said that those who disagree with its anti-Trump views should resign."[40][41]

After a Twitter boycott campaign was initiated, Maloney later claimed his words were "misconstrued", adding "I want to clarify that I did not ask for anyone to resign if they voted for Trump. I would never make such a demand. To the contrary, the message of the email is that we do not tolerate discriminatory activity or hateful commentary in the workplace, and that we will stand up for our employees."[40] In a tweet that was later deleted, Maloney added: "To be clear, Grubhub does not tolerate hate and we are proud of all our employees - even those who voted for Trump."[41] By Thursday night, the hashtag #BoycottGrubHub was trending on Twitter.[42]

On November 11, 2016, after the controversy, the company's shares dropped 5.93%.[43][42]

References

  1. ↑ "US SEC: Form 10-K Grubhub Inc". U.S. Securities and Exchange Commission. Retrieved June 28, 2018.
  2. ↑ "Grubhub Reports Record Fourth Quarter Results". The Grubhub Newsroom. 2018-02-08. Retrieved 2018-04-05.
  3. ↑ "Grubhub Company Statistics". Retrieved 2018-04-05.
  4. ↑ "Jason Finger of Seamless: The Random Idea That Sparked a $100M Business". OPEN Forum. May 6, 2013. Retrieved November 14, 2016.
  5. ↑ "How I Did It: Matt Maloney of GrubHub and Seamless". Inc. October 31, 2014. Retrieved May 12, 2016.
  6. ↑ Will Oremus (May 20, 2013). "GrubHub-Seamless Merger a Boon for Consumers Who Could Never Recall Which Was Which". Slate.
  7. ↑ Fiegerman, Seth (April 4, 2014). "GrubHub Delivers Successful IPO as Stock Jumps 50% on Market Debut". Mashable.com.
  8. ↑ "Executive team". The Grubhub Newsroom. Retrieved 2018-04-05.
  9. ↑ "Grubhub Reports Record Fourth Quarter Results". GrubHub.com. 2018-02-08. Retrieved 2018-04-05.
  10. ↑ Brustein, Joshua. "Seamless Acquires Menupages in Race for Restaurants". Bits Blog. Retrieved May 12, 2016.
  11. ↑ "GrubHub Secures $50 Million and is Acquiring Campusfood and Allmenus". Reuters. September 21, 2011. Retrieved May 12, 2016.
  12. ↑ Castellanos, Sara. "GrubHub acquires Brighton online restaurant delivery service DiningIn". Boston Business Journal. Retrieved June 8, 2015.
  13. ↑ "UPDATE 2-GrubHub goes direct to diners after acquisitions", Reuters.com, February 5, 2015.
  14. ↑ Sky, Blue. "GrubHub acquires Delivered Dish of Portland, Ore". chicagotribune.com. Retrieved May 12, 2016.
  15. ↑ Stynes, Tess (3 May 2016). "GrubHub Agrees to Acquire LAbite, Profit Falls 6%". The Wall Street Journal. Retrieved 11 August 2017.
  16. ↑ "GrubHub Tops Sales Estimates and Extends Delivery Reach in Los Angeles". Fortune. 3 May 2016. Retrieved 11 August 2017.
  17. ↑ "Grubhub to Buy Yelp's Eat24 for $287.5 Million". Inc. 4 August 2017. Retrieved 11 July 2017.
  18. ↑ https://techcrunch.com/2018/07/25/grubhub-acquires-levelup/
  19. ↑ Marotti, Ally. "Grubhub goes to college: Chicago company to buy on-campus food ordering service Tapingo for $150M". chicagotribune.com. Retrieved 2018-09-25.
  20. ↑ Bhasin, Kim. "GrubHub's CEO On The Shock Of Outgrowing Three Offices In A Few Short Years". Businessinsider.com. Retrieved October 2, 2013.
  21. ↑ "Grubhub.com Wins the University of Chicago New Venture Challenge". Prweb.com. Retrieved November 11, 2016.
  22. ↑ "GrubHub Secures $1.1 Million in Series A Funding From Top Venture Firms". Prnewswire.com. Retrieved November 14, 2016.
  23. ↑ Rao, Leena. "Food Delivery Service GrubHub Secures $2 Million In Series B Funding". Techcrunch.com. Retrieved October 2, 2013.
  24. ↑ Kopytoff, Verne (November 8, 2010). "GrubHub Gets a Cash Delivery". The New York Times. Retrieved October 2, 2013.
  25. ↑ Rao, Leena. "Exclusive: Food Delivery Search Engine GrubHub Raises $20 Million". Techcrunch.com. Retrieved October 2, 2013.
  26. ↑ Brustein, Joshua (September 20, 2011). "GrubHub Raises Another $50 Million, Acquires Dotmenu". The New York Times. Retrieved October 2, 2013.
  27. ↑ Amina Elahi (December 7, 2015). "GrubHub acquires Delivered Dish of Portland, Ore". Chicago Tribune.
  28. ↑ John Pletz (May 3, 2016). "Grubhub's stock dips on slower growth". Crain's Chicago Business.
  29. ↑ Tedeschi, Bob (June 13, 2005). "Ordering Takeout Online: A Dot-Com Idea Returns for a Second Try". The New York Times. Retrieved October 2, 2013.
  30. ↑ "Aramark Corp. has acquired SeamlessWeb Professional Solutions, Inc". Food Management. Retrieved October 2, 2013.
  31. ↑ "ARAMARK Sells Stake In Online Food Ordering Service SeamlessWeb For $50M". TechCrunch. June 8, 2011. Retrieved November 14, 2016.
  32. ↑ Brustein, Joshua (September 26, 2011). "Seamless Acquires Menupages in Race for Restaurants". The New York Times. Retrieved October 2, 2013.
  33. ↑ Ludwig, Sean (February 28, 2012). "Seamless brings super simple food ordering to the iPad". Venturebeat.com. Retrieved October 2, 2013.
  34. ↑ Lazare, Lewis. "GrubHub and Seamless complete merger". Bizjournals.com. Retrieved November 14, 2016.
  35. ↑ "GRUBHUB INC. (GRUB) IPO". NASDAQ.com. Retrieved May 12, 2016.
  36. ↑ Transcripts, SA (May 3, 2016). "GrubHub (GRUB) Matthew M. Maloney on Q1 2016 Results - Earnings Call Transcript". Seeking Alpha. Retrieved May 12, 2016.
  37. ↑ "Seen & Heard: Another GrubHub Seamless Scheme". Tribeca Citizen. April 6, 2016.
  38. ↑ "Why Restaurants Hate GrubHub Seamless". Tribeca Citizen. March 1, 2016.
  39. ↑ Finance (2015-02-10). "Here's the big stat GrubHub's new competitors covet". Business Insider. Retrieved 2017-03-07.
  40. 1 2 "Matt Maloney, Grubhub CEO, tells pro-Trump employees they have 'no place' in company". Washington Times. Retrieved November 14, 2016.
  41. 1 2 "Grubhub faces backlash after CEO's anti-Trump email to employees". Chicago Tribune. Retrieved November 14, 2016.
  42. 1 2 "Grubhub alienates Trump voters - time to sell?". seekingalpha.com. November 15, 2016.
  43. ↑ "GrubHub Inc. Common Stock (GRUB) Real-Time Stock Quote - NASDAQ.com". NASDAQ. Retrieved November 14, 2016.
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