Grubhub is an online and mobile food-ordering company that connects diners with local restaurants. Based in Chicago, the company has more than 8.75 million active diners, and 50,000 restaurant partners in over 1,100 cities across the United States and the United Kingdom.
|Traded as||NYSE: GRUB|
|Industry||Online platform for restaurant pick-up and delivery|
|Founder||Michael "Mike" Evans and Matthew Mayer "Matt" Maloney|
|Headquarters||Chicago, Illinois, U.S.|
|Matthew Mayer "Matt" Maloney, Chief Executive Officer and President
Brian McAndrews, Chairman of the Board
|Revenue||$493.331 million (2016)|
|$49.557 million (2016)|
|Total assets||$1.198 billion (2016)|
In 1999, Seamless was founded by two lawyers, Jason Finger and an associate, fed up with out-of-date paper menus. In 2004, Grubhub was founded by Matthew Maloney and Michael Evans, two web developers looking for an alternative to paper menus.
Grubhub's executives include:
- Matt Maloney, President and Chief Executive Officer
- Adam DeWitt, Chief Financial Officer
- Stan Chia, Chief Operating Officer
- Barbara Martin Coppola, Chief Marketing Officer
- Maria Belousova, Chief Technology Officer
- Sudev Balakrishnan, Senior Vice President of Product
- Margo Drucker, Senior Vice President, General Counsel and Secretary
- Kelley Berlin, Senior Vice President of People
- Brian McAndrews, Chairman of the Board
As of Q1 2017, the company processes more than 324,600 orders/day and has 8.75 million active diners.
Grubhub's portfolio of brands includes Seamless, AllMenus, MenuPages, Restaurants on the Run, DiningIn, Delivered Dish, and LAbite. 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 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. Allmenus was acquired by Grubhub in September 2011. 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. 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.
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, 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.
Chicago-based Grubhub was founded in 2004 by Mike Evans and Matt Maloney, looking for 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 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. $20 million in Series D funding was raised (led by DAG Ventures) in March 2011.
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. 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 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.
Grubhub and Seamless mergerEdit
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.
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. (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.
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 [the majority of the company personnel's] anti-Trump views should resign."
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." 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." By Thursday night, the hashtag #BoycottGrubHub was trending on Twitter.
Stock selloff by CEOEdit
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. 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.
On December 21, 2016, Maloney sold 14,491 shares at $37.46 per share price, according to the Form-4 filing with the securities and exchange commission.
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