Online Food Delivery Giants GrubHub, Seamless Announce Merger
By Chuck Sudo in Food on May 20, 2013 5:40PM
Chicago-based GrubHub and New York-based Seamless, two of the giants in the growing and lucrative online food ordering and delivery business, announced this morning they’re merging companies, color schemes and fonts in what is expected to be a company with over 20,000 restaurant locations in 500 cities across the country with revenues exceeding $100 million.
GrubHub co-founder and CEO Matt Maloney said in a statement the merger will position the new company for growth in an online market that is teeming with clones.
"GrubHub and Seamless share a common goal to generate more business for local takeout restaurants while providing the best possible service to diners. By combining our complementary restaurant and diner networks, we are well positioned for continued growth in a massive market."
Indeed, food startups in the tech sector have become huge business. Venture capitalists threw $350 million into food startups in the past year, compared to $50 million in 2008. (That’s a lot of people who don’t want to leave the comfort of their couches to pick up takeout.) Techcrunch reported on the talks between the two nearly identical companies last week and noted, if the merger were to happen, it would make the new company “the Groupon of food delivery” poised to take capitalize on all that rain falling down.
The merger allows GrubHub and Seamless—SeamHub, Grubless—to combine products like Seamless’s iPad app and GrubHub’s Track Your Grub, streamline future technological research and product development, combine networks and services while chasing down the money for future investment.
Each brings different strengths to the merger, however. GrubHub focused on consumers looking for an easier way to order food and have it delivered or ready for takeout, while Seamless focused on the expense account set and connected restaurants with corporate employees. GrubHub co-founder and chief operating officer Mike Evans told the Chicago Tribune Seamless’s corporate client base was a major attraction. “It'll be interesting to look at their corporate client base. And they have a really strong presence in several key cities in the U.S.”
Evans also said no layoffs are expected with the merger. Maloney will be the CEO of the new, unnamed company, with Seamless CEO Jonathan Zabusky becoming president in the merger.