By The Star Online.
GrubHub Inc is gobbling up its smaller competitors, but trading them in for much, much larger ones.
On Thursday, the company said it would buy Eat24 from Yelp Inc for US$288mil in cash, well over twice the US$134mil Yelp paid for the smaller food delivery company when Yelp bought it in February 2015. GrubHub and Yelp are also agreeing to a five-year partnership that will see Yelp integrating GrubHub ordering into its own restaurant listings. When someone places a GrubHub order through Yelp, GrubHub will pay a “partnership fee”, which the company considers a marketing expense.
The move mirrors a deal that GrubHub announced with Groupon earlier this week, when it bought Groupon’s ordering platform, OrderUp, which operated in 27 cities, focused mostly on college campuses. In June, the Chicago-based company also bought Foodler, a Boston-based online delivery service. Terms for those deals weren’t released.
For Yelp and GrubHub, the partnership means access to more people placing orders, says Matthew Maloney, GrubHub’s CEO. “The Groupon deal is similar in form but nowhere near in
Read more at The Star.