Grubhub facts for kids
Logo used since 2021
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Formerly
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GrubHub Seamless Inc. (2013–2014) |
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| Subsidiary | |
| Traded as | NYSE: GRUB (2014–2021) |
| Industry | Online food ordering |
| Founded | 2004 |
| Founders |
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| Headquarters |
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U.S.
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Area served
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United States |
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Key people
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| Services | Food delivery |
| Revenue |  US$1.82 billion (2020) |
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Operating income
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 −US$149 million (2020) |
| −US$156 million (2020) |
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| Total assets | US$2.39 billion (2020) |
| Total equity | US$1.42 billion (2020) |
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Number of employees
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2,841 (Feb 2021) |
| Parent | Just Eat Takeaway |
| Subsidiaries |
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Grubhub Inc. (stylized in all caps) is an American online and mobile prepared food ordering and delivery platform based in Chicago, Illinois.
Founded in 2004, it is a subsidiary of the Dutch company Just Eat Takeaway since 2021. Grubhub has been criticized for antitrust price manipulation, listing restaurants without permission, and allegedly misclassifying workers.
Grubhub Seamless went public in April 2014 and was traded on the New York Stock Exchange (NYSE) under the ticker symbol GRUB.
As of 2019, it had 19.9 million active users, with 115,000 associated restaurants in 3,200 cities in all 50 US states.
Contents
History
Grubhub history
The original Chicago-based Grubhub was founded in 2004 by Mike Evans and Matt Maloney to create an alternative to paper menus. 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.
In November 2007, Grubhub secured $1.1 million in Series A funding, led by Amicus Capital and Origin Ventures for the purpose of expanding into San Francisco and New York markets. In March 2009, Grubhub earned $2 million in Series B funding, led by Origin Ventures and Leo Capital, which was followed by $11 million in Series C funding, led by Benchmark Capital in November 2010. In March 2011 $20 million in Series D funding raise was led by DAG Ventures.
Grubhub's portfolio of brands includes Seamless, AllMenus, MenuPages, LevelUp, and Tapingo. Seamless is an online and mobile food ordering platform for regional restaurants active in the U.S. and London.
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. Grubhub completed the acquisition of AllMenus that month. MenuPages was acquired by Seamless in September 2011.
DiningIn, an online ordering and food delivery company based in Brighton, Massachusetts, was acquired by Grubhub in February 2015. Restaurants on the Run, a corporate food delivery company based in Aliso Viejo, California, was acquired by Grubhub in February 2015.
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. LAbite, a Los Angeles–based restaurant delivery service, was acquired by Grubhub in May 2016.
In August 2017, Grubhub agreed to acquire Eat24 from Yelp for $287.5 million, subject to regulatory review. In October 2017, Grubhub announced that had it completed its acquisition of Eat24. In late 2018 Grubhub shut down the Eat24 brand.
Certain assets were acquired from 11 franchisee-owned OrderUp markets in September 2018. Certain assets from 27 OrderUp markets had already been acquired in 2017. GrubHub completed its acquisition of OrderUp in October 2018.
LevelUp, a Boston-based diner engagement and payment solutions platform was acquired by Grubhub in September 2018. The acquisition of LevelUp was for a reported $390 million cash. Tapingo, a San Francisco–based platform for campus food ordering was acquired by Grubhub in November 2018.
In March 2019, Grubhub took over SkipTheDishes' operations in the United States after SkipTheDishes announced its exit from the U.S. market.
By mid-2020, in the middle of the coronavirus pandemic where demand for services delivering food from restaurants and takeaways surged, Grubhub announced it was keeping its drivers safe by offering contact-free delivery as well as the option to order pickup for anyone who felt more comfortable getting the food themselves.
On June 9, 2020, Netherlands based Just Eat Takeaway announced an agreement to buy Grubhub for $7.3 billion in stock.
Grubhub and Seamless merger
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. In April 2006, SeamlessWeb was acquired by Aramark and integrated into its Food, Hospitalities, and Facilities segment.
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.
In September 2011, Seamless acquired MenuPages, and in February 2012, Seamless released an iPad app.
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.
IPO
Grubhub went public in April 2014 at $26 per share. During its time as a standalone company, it traded on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".
Delivery
In June 2014, Grubhub began offering delivery for restaurants that did not operate their own delivery service. By 2016, the company was delivering in more than 50 markets across the U.S. In July 2018, Grubhub announced that it had expanded its delivery capabilities to 28 new cities in the US.
Grubhub's UK competitors are Deliveroo and UberEATS. In the U.S. its competitors include Uber Eats, DoorDash, Postmates, and EatStreet.
In February 2020, the company announced the launch of its new Grubhub+ monthly subscription program, which offers free, unlimited food delivery from partner restaurants for a monthly fee.
In 2021, the company announced a partnership with Yandex to add Yandex delivery robots to the Grubhub platform for food deliveries in colleges.
Announced acquisition
On May 12, 2020, Uber announced that it was approaching Grubhub with a takeover offer. However, on June 9, 2020, Just Eat Takeaway announced it would be purchasing Grubhub for $7.3 billion in an all-stock deal. The acquisition would create the largest online food delivery service outside of China, and provide Just Eat Takeaway with a base in the U.S. market. North American headquarters would remain in Chicago with Grubhub founder, Matt Maloney, joining the board of directors and heading North American operations.
On June 10, 2021, Just Eat Takeaway took operations of Grubhub as Grubhub stockholders approved Transaction with Just Eat Takeaway. The sale was completed on June 15, 2021. As part of this, Grubhub's logo was changed to include the Just Eat Takeaway house.
Post acquisition
In April 2022, Just Eat said that it would consider a full sale of Grubhub after Cat Rock Capital, an activist investor, pressed the company to focus on European markets.
In July 2022, Amazon struck a deal with Just Eat to offer Prime customers free Grubhub+ membership for a year. The partnership allows Amazon to take a 2% stake in the company with the option to acquire up to 15% based on performance.
