GrubHub and Seamless to Become One Company
GrubHub CEO Matt Maloney will keep his title at the new company, while Seamless CEO Jonathan Zabusky will assume the role of president. Financial terms of the deal were not disclosed. The name of the combined team--Grubless, anyone?--has not yet been announced.
TechCrunch explained the significance of a possible merger over the weekend, noting how big the online food biz has become. Citing research from Cornell University, TechCrunch said more than 40 percent of adults have ordered food online, and 10 percent of restaurant orders originate online.
While Seamless has traditionally dominated the New York City market, particularly in worker hub midtown Manhattan, GrubHub has made the midwest its launch pad.
GrubHub, which was founded in Chicago in 2004, has expanded to more than 500 cities and more than 20,000 restaurants, and raised $84 million in venture capital funding in the process.
Seamless, on the other hand, launched in 1999, was acquired in 2000, and then became its own entity in 2001. It rebranded from its earlier name Seamless Web two years ago. Today it's in 12,000 restaurants, and reportedly generated $85 million in revenue last year, according to Reuters.
Both brands are also visible--through signage--in restaurants and cities they serve.
The merger will, ideally, enable both companies to expand farther.
Neither company had an easy time of it, and to this day the founders struggle with balancing life and work. As GrubHub's co-founder Matt Maloney told Inc. in a video: "It's super tricky all the time."
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