Grubhub

GrubHub Inc
Public
Traded as NYSE: GRUB
Industry online platform for restaurant pick-up and delivery
Headquarters Chicago, Illinois, U.S.
Area served
 United States
Key people
 Matthew Mayer Maloney, Chief Executive Officer and President
Brian McAndrews, Chairman of the Board
Revenue Increase $361.83 million (2015)
Increase $61.93 million (2015)
Total assets Increase $1.06 billion (2015)
Website www.grubhub.com

Grubhub is an online and mobile food-ordering company that connects diners with local restaurants. Based in Chicago, the company has more than 44,000 restaurant partners in over 1,000 cities across the United States and the United Kingdom.

Overview

In 1999, Seamless was founded by two lawyers, Jason Finger and an associate, fed up with out-of-date paper menus.[1]

In 2004, Grubhub was founded by Matthew Mayer "Matt" Maloney and Michael "Mike" Evans, two web developers looking for an alternative to paper menus.[2]

In 2013, Grubhub and Seamless merged.[3] The combined organization, Grubhub, went public in April 2014 and trades on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".[4]

Grubhub's executives include:

The company processes more than 267,800 orders/day and has 6.97 million active diners.[5]

Brands

Grubhub's portfolio of brands includes Seamless, AllMenus, MenuPages, Restaurants on the Run, DiningIn, Delivered Dish, and LAbite.

Grubhub

Grubhub is an online and mobile food-ordering company that connects diners with local restaurants. Diners who order through Grubhub's website or mobile apps—for iOS and Android devices—can pay with cash, credit or PayPal.

Seamless

Seamless is an online and mobile food ordering platform that connects diners with local restaurants. Seamless serves consumer diners, as well as corporate businesses in the U.S. and London. Shows diners local restaurants available for delivery or pick up. Diners who order through the Seamless website or mobile apps—for iOS and Android devices—can pay with cash, credit or PayPal.

Seamless' corporate product allows businesses to consolidate all food ordering and subsequent billing into a single account. The product provides three ways to order:

MenuPages

MenuPages was acquired by Seamless in September 2011.[6]

Allmenus

Allmenus was acquired by Grubhub in late September 2011.[7]

DiningIn

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.[8]

Restaurants on the Run

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.[9]

Delivered Dish

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.[10]

LA Bite

LAbite, one of the largest restaurant delivery services in the U.S., was acquired by Grubhub in May 2016. Most of LAbite's volume comes from the Greater Los Angeles area.

History

Grubhub history

Chicago-based Grubhub was founded in 2004 by Mike Evans and Matt Maloney, looking for an alternative to paper menus.[11] 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.[12]

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.[13]

In March 2009, Grubhub earned $2 million in Series B funding, led by Origin Ventures and Leo Capital,[14] which was followed by $11 million in Series C funding, led by Benchmark Capital in November 2010.[15] $20 million in Series D funding was raised (led by DAG Ventures) in March 2011.[16]

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.[17]

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.[18]

LAbite, one of the largest restaurant delivery services in the U.S., was acquired by Grubhub in May 2016.[19]

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.[20]

In April 2006, SeamlessWeb was acquired by Aramark and integrated into its Food, Hospitalities, and Facilities segment.[21]

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.[22]

In September 2011, Seamless acquired MenuPages,[23] and in February 2012, Seamless introduced the industry's first iPad app.[24]

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.[25]

IPO

Grubhub went public in April 2014 and trades on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".[26]

Delivery

In June 2014, Grubhub began offering delivery to restaurants that don't operate their own delivery service. The company is now delivering in more than 50 markets across the U.S.[27] (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), Chicagoland suburbs and Las Vegas). More than 5,000 restaurants are now using Grubhub delivery.

Grubhub's UK competitors are Deliveroo, Just Eat, and Hungryhouse. In the US, its largest remaining competitor is Boston-based Foodler.

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 [sic] anti-Trump views should resign."[28][29]

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."[28] 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."[29] By Thursday night, the hashtag #BoycottGrubHub was trending on Twitter.[30]

Stock selloff by CEO

On October 24, 2016, Maloney sold 14,491 shares of the stock at an average price of $43.55, for a total value of $631,083.05.[31][32]

On November 7, Maloney sold 14,491 shares of the company's stock at a price of $37.80, for a total transaction of $547,759.80 in personal profit.[33] Following the sales, Maloney now directly owns 1,649 shares of the company stock, valued at approximately $62,332.20. The transaction was disclosed in a filing with the Securities & Exchange Commission.[33]

On November 11, 2016, after the controversy, the company's shares tumbled 5.93%.[34][30]

References

  1. ↑ "Jason Finger of Seamless: The Random Idea That Sparked a $100M Business". OPEN Forum. May 6, 2013. Retrieved November 14, 2016.
  2. ↑ "How I Did It: Matt Maloney of GrubHub and Seamless". Inc.com. October 31, 2014. Retrieved May 12, 2016.
  3. ↑ Will Oremus (May 20, 2013). "GrubHub-Seamless Merger a Boon for Consumers Who Could Never Recall Which Was Which". Slate.com.
  4. ↑ Seth Fiegerman (April 4, 2014). "GrubHub Delivers Successful IPO as Stock Jumps 50% on Market Debut". Mashable.com.
  5. ↑ Inc., GrubHub. "Grubhub Reports Record First Quarter Results". www.prnewswire.com. Retrieved May 12, 2016.
  6. ↑ Brustein, Joshua. "Seamless Acquires Menupages in Race for Restaurants". Bits Blog. Retrieved May 12, 2016.
  7. ↑ "GrubHub Secures $50 Million and is Acquiring Campusfood and Allmenus". Reuters. September 21, 2011. Retrieved May 12, 2016.
  8. ↑ Castellanos, Sara. "GrubHub acquires Brighton online restaurant delivery service DiningIn". Boston Business Journal. Retrieved June 8, 2015.
  9. ↑ "UPDATE 2-GrubHub goes direct to diners after acquisitions", Reuters.com, February 5, 2015.
  10. ↑ Sky, Blue. "GrubHub acquires Delivered Dish of Portland, Ore.". chicagotribune.com. Retrieved May 12, 2016.
  11. ↑ Bhasin, Kim. "GrubHub's CEO On The Shock Of Outgrowing Three Offices In A Few Short Years". Businessinsider.com. Retrieved October 2, 2013.
  12. ↑ "Grubhub.com Wins the University of Chicago New Venture Challenge". Prweb.com. Retrieved November 11, 2016.
  13. ↑ "GrubHub Secures $1.1 Million in Series A Funding From Top Venture Firms". Prnewswire.com. Retrieved November 14, 2016.
  14. ↑ Rao, Leena. "Food Delivery Service GrubHub Secures $2 Million In Series B Funding". Techcrunch.com. Retrieved October 2, 2013.
  15. ↑ Kopytoff, Verne (November 8, 2010). "GrubHub Gets a Cash Delivery". The New York Times. Retrieved October 2, 2013.
  16. ↑ Rao, Leena. "Exclusive: Food Delivery Search Engine GrubHub Raises $20 Million". Techcrunch.com. Retrieved October 2, 2013.
  17. ↑ Brustein, Joshua (September 20, 2011). "GrubHub Raises Another $50 Million, Acquires Dotmenu". The New York Times. Retrieved October 2, 2013.
  18. ↑ Amina Elahi (December 7, 2015). "GrubHub acquires Delivered Dish of Portland, Ore.". Chicago Tribune.
  19. ↑ John Pletz (May 3, 2016). "Grubhub's stock dips on slower growth". Crain's Chicago Business.
  20. ↑ 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.
  21. ↑ "Aramark Corp. has acquired SeamlessWeb Professional Solutions, Inc.". Food Management. Retrieved October 2, 2013.
  22. ↑ "ARAMARK Sells Stake In Online Food Ordering Service SeamlessWeb For $50M". TechCrunch. June 8, 2011. Retrieved November 14, 2016.
  23. ↑ Brustein, Joshua (September 26, 2011). "Seamless Acquires Menupages in Race for Restaurants". The New York Times. Retrieved October 2, 2013.
  24. ↑ Ludwig, Sean (February 28, 2012). "Seamless brings super simple food ordering to the iPad". Venturebeat.com. Retrieved October 2, 2013.
  25. ↑ Lazare, Lewis. "GrubHub and Seamless complete merger". Bizjournals.com. Retrieved November 14, 2016.
  26. ↑ "GRUBHUB INC. (GRUB) IPO". NASDAQ.com. Retrieved May 12, 2016.
  27. ↑ Transcripts, SA (May 3, 2016). "GrubHub (GRUB) Matthew M. Maloney on Q1 2016 Results - Earnings Call Transcript". Seeking Alpha. Retrieved May 12, 2016.
  28. 1 2 "Matt Maloney, Grubhub CEO, tells pro-Trump employees they have 'no place' in company". Washington Times. Retrieved November 14, 2016.
  29. 1 2 "Grubhub faces backlash after CEO's anti-Trump email to employees". Chicago Tribune. Retrieved November 14, 2016.
  30. 1 2 "Grubhub alienates Trump voters - time to sell?". seekingalpha.com. November 15, 2016.
  31. ↑ Cynthia Vaughn (October 27, 2016). "GrubHub Inc (GRUB) CEO Matthew M. Maloney Sells 14,491 Shares of Stock". Com-unik.info. Retrieved November 14, 2016.
  32. ↑ "Executive Profile". Atlas.equilar.com. Retrieved November 14, 2016. (registration required)
  33. 1 2 Jackson, Renee (November 10, 2016). "Matthew M. Maloney Sells 14,491 Shares of GrubHub Inc (GRUB) Stock". thecerbatgem.com. Retrieved November 15, 2016.
  34. ↑ "GrubHub Inc. Common Stock (GRUB) Real-Time Stock Quote - NASDAQ.com". NASDAQ. Retrieved November 14, 2016.
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