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The companies join forces to create one large food ordering service
Lazy bums everywhere: rejoice, for your days of strife are over. No more will you have to suffer through the irritation of not being able to find your fave Chinese place on GrubHub, thereby forcing you to check Seamless, or Delivery Hero, or vice versa. Today is the dawning of a new era. Behold: the super mega takeout ordering service!
To be specific, GrubHub and Seamless announced Monday that they’re merging into one company—name TBD.
“Seamless has a popular corporate ordering product and a significant presence in New York City, London and other major U.S. cities. GrubHub has an expansive diner and restaurant network in 500+ cities and a track record of developing innovative products,” a GrubHub spokesperson explained to me. “By merging, we will be well positioned to improve online and mobile ordering by driving more orders to our restaurants and providing even better services to our diners and corporate clients than we each would be able to do on our own.”
In 2012, the two companies generated a combined $875 million in gross food sales, resulting in over $100 million in revenue.
GrubHub co-founder and CEO Matt Maloney will be the new company’s CEO, while Seamless CEO Jonathan Zabusky will become President. GrubHub’s current President, Mike Evans, will become the combined company’s Chief Operating Officer, while GrubHub CFO Adam DeWitt will remain in place as the combined company’s CFO. Seamless CIO Sanjay Tiwary will be the new company’s CIO.
“By bringing together some of the industry’s most celebrated products, including Seamless’s award-winning iPad app and GrubHub’s innovative Track Your Grub (who wouldn’t want to track their order?), we will be able to bring greater choice and more sophisticated (or just really cool and reliable) ordering capabilities to our members and corporate clients across the U.S.,” said Seamless CEO Jonathan Zabusky, in a blog post.
It’s interesting that the two companies decided to go with a merger rather than an acquisition, but clearly, they’ll both benefit from the deal. While Seamless isn’t getting the exit of so many startups’ dreams, it will gain access to GrubHub’s user base and technology, while GrubHub gains access to Seamless’s strong base in many of the larger U.S. cities without having to fork over a ton of cash.
Last week, Seamless made the news when Netflix of all people used it to promote the upcoming debut of the new season of Arrested Development with a Seamless page for the Bluth Frozen Banana Stand. Items include the original frozen banana, as well as breakfast items, such as Vodka Rocks and Toast, main plates, such as Corn Balls, Mayoneggs, and Hot Ham Water, beverages (obviously), and “health” items. Delivery minimum is $250,000.
Image source: sbnation.com
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Frustrated by the lack of restaurant delivery information available on the Internet, Matt Maloney and Mike Evans created GrubHub to organize and simplify all the restaurant data available to consumers. Visitors to the site or mobile users simply enter their address to see every local restaurant that delivers to them. Users can view menus and coupons, read user reviews and order for free online, by phone or through the GrubHub iPhone and Android apps.