For fiscal 2021, Grubhub made over $500 million in revenues per quarter. The food-tech company has around 2,773 employees and fulfills more than 745,000 orders daily. In 2021, Grubhub partnered with Yandex to use Yandex robots to deliver food to college students. In Feb 2020, the firm launched its Grubhub+ monthly subscription program.Ĭustomers pay a monthly fee to access free, unlimited food delivery from partner restaurants. The company was founded in 2004 by Mike Evans and Matt Maloney and went public in 2014. With the ongoing fray taking place to secure recurring revenue from consumers, GrubHub could be hard-pressed to keep growing its ‘active diner’ headcount - and if it sees active diners’ usage begin to decline on its platform, this would be a clear sign its competitors are successfully taking a bite of its revenue.Grubhub is an online and mobile food ordering and delivery platform based in Chicago, Illinois. The company currently focuses on grocery deliveries, but with its newfound funding and the synergies it could have with restaurants, it wouldn’t be far-fetched to think Instacart could also one day rival the offerings of Square, GrubHub and Yelp. gorilla in the room could turn out to be Instacart, which recently took on more than $200 million in funding at a $2 billion valuation. Already, Uber is scaling up a competitor to GrubHub. The barriers to entry in the food delivery business are low, meaning that other competitors could emerge, as well. Yelp, which had long been rumored to branch out of the ratings game and into verticals that allowed it to draw more revenue from its massive base of businesses, struck a $134 million cash-and-stock deal to buy Eat24, another California-based delivery startup. Notably, while Yelp shares rose today after its big deal announcement, GrubHub's stock slumped. Last week, the company bought Massachusetts-based DiningIn and California-based Restaurants on the Run, giving GrubHub a pair of offerings to fight off Yelp and Square. GrubHub is moving, tooįor its part, GrubHub bought a pair of food delivery startups as it ramps up a plan to start delivering food that is ordered via its app in nearly a dozen cities, covering more than 3,000 restaurants. While Square’s big buy aims to address the proverbial “1%” of both diners and restaurants, other competitors are casting a wider net to reach the most users possible. In August, online payment service Square branched out into new territory with a $90 million buy of Caviar, a high-end food delivery startup that tacks on a hefty service fee to bring consumers the finest in high-end dining. Grubhub charges restaurants a lesser fee than its competitors for access to its platform and its broad base of users if Square and Yelp opt to reduce what they make off restaurants in lieu of pushing higher rates on to consumers, their companies Caviar and Eat24 will instantly become more viable to their respective parent company. With wait times for popular restaurants closing in on an hour, or longer, at peak times in markets like New York, every company slugging it out for scale has few options to differentiate their service. GrubHub has successfully cultivated a loyal user base through its easy-to-navigate user interface, but prolonged wait times - as Uber has already demonstrated - could be enough to push some consumers to ante up for a premium rate at peak times. Account icon An icon in the shape of a person's head and shoulders.
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