Grubhub
| File:Grubhub logo.svg Logo used since 2021 | |
| Company type | Private |
|---|---|
| Industry | Online food ordering and delivery |
| Founded | January 1, 2004 in Chicago, Illinois, U.S. |
| Founder | Matt Maloney, Mike Evans |
| Headquarters | Chicago, Illinois , United States |
Area served | United States |
Key people | Matthew Maloney (CEO), Brian McAndrews (Chairman) |
| Products | Online and mobile food ordering platform |
| Revenue | $1.82 billion (2020) |
| −$149 million (2020) | |
| −$156 million (2020) | |
| Owner | Wonder Group Inc. |
Number of employees | 2,841 (2021) |
| Website | www |
GRUBHUB INC. (presented in all caps) is a U.S.-based digital and mobile platform specializing in prepared meal ordering and delivery, with its headquarters located in Chicago, Illinois.
Established in 2004 by founders Matt Maloney and Mike Evans, Grubhub was under the ownership of the Dutch firm Just Eat Takeaway from 2021 until it was acquired by Wonder Group Inc. in 2024 for $650 million. The acquisition is anticipated to finalize in early 2025.
Operating nationwide across the United States, Grubhub served 19.9 million active users in 2019 and partnered with over 115,000 restaurants in more than 3,200 cities. Its brand portfolio features subsidiaries including BiteGrabber, Eat24, LevelUp, Seamless, Tapingo, and OrderUp.
The company launched its initial public offering on the New York Stock Exchange in April 2014 under the symbol GRUB but was privatized following the acquisition. Financially, Grubhub reported revenue of $1.82 billion in 2020, while incurring operating and net losses of $149 million and $156 million respectively. By February 2021, the workforce numbered around 2,841 employees.
Grubhub has encountered scrutiny related to antitrust concerns, unauthorized listings of restaurants, and classification of workers. Leadership includes CEO Matthew Maloney and chairman Brian McAndrews.
The company's strategy centers on linking consumers with local dining establishments through its digital platform, utilizing market share within the competitive food delivery sector by means of targeted acquisitions and technological integration to foster growth and sustain market presence.
Grubhub history
Founded in Chicago in 2004 by entrepreneurs Mike Evans and Matt Maloney, Grubhub aimed to replace traditional paper menus with an online service. In 2006, their business plan earned first place at the University of Chicago Booth School of Business's New Venture Challenge.
In 2007, Grubhub secured $1.1 million in Series A funding led by Amicus Capital and Origin Ventures to support expansion into San Francisco and New York markets. Subsequent financing rounds included $2 million Series B (2009), $11 million Series C (2010), and $20 million Series D (2011), with participation from investors such as Benchmark Capital and DAG Ventures.
Grubhub’s holdings encompass brands like Seamless, AllMenus, MenuPages, LevelUp, and Tapingo. Seamless operates as a digital food ordering service across the United States and London.
The company raised $50 million in Series E funding in 2011 and acquired competitor Dotmenu along with Allmenus and Campusfood. That same year saw Seamless acquire MenuPages. Additional acquisitions included DiningIn and Restaurants on the Run in 2015, Delivered Dish later that year, and LAbite in 2016—broadening Grubhub's footprint across various U.S. regions.
In August 2017, Grubhub agreed to purchase Yelp’s Eat24 for $287.5 million; the acquisition completed in October 2017 with the Eat24 brand phased out by late 2018.
Further growth occurred through acquiring OrderUp assets during 2017–2018 and finalizing full ownership of OrderUp in October 2018. In September 2018, Grubhub bought Boston-based LevelUp for about $390 million in cash to enhance diner engagement and payment technology. Later that year saw the addition of Tapingo, a campus-focused food ordering platform.
In March 2019, Grubhub assumed control of SkipTheDishes’ U.S. operations following SkipTheDishes’ withdrawal from the American market.
Amid heightened demand during the COVID-19 pandemic, Grubhub introduced contactless delivery and pickup methods to prioritize safety.
On June 9, 2020, Netherlands-based Just Eat Takeaway announced a stock deal valued at $7.3 billion to acquire Grubhub.
In November 2024, Wonder Group Inc. acquired Grubhub from Just Eat Takeaway for $650 million, representing a considerable loss for the former owner.
Grubhub and Seamless consolidation
SeamlessWeb was established in 1999 by New York attorney Jason Finger to provide corporations with an online food ordering platform. By 2005, SeamlessWeb extended its services to individual consumers, introducing a complimentary ordering system. The company was acquired by Aramark in 2006 and subsequently incorporated into Aramark’s Food, Hospitality, and Facilities division.
In 2009, Jonathan Zabusky assumed the role of Seamless president. Two years later, in June 2011, Boston-based Spectrum Equity Associates invested $50 million for a minority position, prompting SeamlessWeb to revert to private ownership and rebrand as Seamless. That same year, in September, Seamless acquired MenuPages and launched an iPad application in early 2012.
In May 2013, Grubhub and Seamless declared their intention to merge, with ownership split at 58% for Seamless and 42% for Grubhub. The merger was finalized in August 2013, strengthening their combined footprint within the online food delivery sector.
Initial public offering
Grubhub debuted on the public market in April 2014, pricing shares at $26 each. It was listed on the New York Stock Exchange under the ticker symbol "GRUB" during its independent operation phase.
Delivery service expansion
Starting in June 2014, Grubhub introduced delivery options for restaurants lacking their own delivery infrastructure. By 2016, the company’s operations spanned over 50 U.S. metropolitan areas. In July 2018, it further extended delivery services to 28 more cities across the United States. Its primary competitors domestically include Uber Eats, DoorDash, Postmates, and EatStreet; internationally in the UK market, Deliveroo and UberEATS are notable contenders.
February 2020 saw the launch of Grubhub+, a subscription program providing unlimited free deliveries from partner eateries on a monthly basis, aiming to enhance competitiveness against other food delivery platforms.
In 2021, Grubhub collaborated with Yandex to deploy Yandex’s autonomous delivery robots on college campuses as part of its innovative global initiatives.
Acquisition announcement
On May 12, 2020, Uber made an acquisition proposal to Grubhub. However, on June 9, 2020, Just Eat Takeaway disclosed plans for a $7.3 billion all-stock purchase of Grubhub. This transaction formed the largest online food delivery company outside China and marked Just Eat Takeaway’s entry into the U.S. market. Grubhub’s North American headquarters remained based in Chicago, with founder Matt Maloney joining the board and overseeing operations across North America.
The acquisition received shareholder approval on June 10, 2021, with completion occurring on June 15, 2021. Post-merger, Grubhub refreshed its branding to align with Just Eat Takeaway’s corporate identity.
Post-acquisition developments
By April 2022, Just Eat considered divesting Grubhub entirely following pressure from activist investor Cat Rock Capital to concentrate efforts on European markets. In July 2022, Amazon partnered with Just Eat to provide Prime members a complimentary one-year Grubhub+ subscription while acquiring a 2% stake with an option to increase up to 15%, contingent on performance metrics. As of May 2024, Amazon fully integrated Grubhub+ into Prime memberships permanently, broadening service offerings and strengthening market presence.
Representation in popular media
In 2020, Grubhub introduced animated television advertisements showcasing app users placing food orders. One particular commercial titled "Delivery Dance" went viral as an internet meme in January 2021 but attracted criticism for being excessively loud and intrusive. This ad featured "Soy Yo," a track by Colombian group Bomba Estéreo, and sparked comparisons to a similar Kroger grocery store commercial that led to a trademark dispute ultimately resolved in Grubhub’s favor.
Lawson vs. Grubhub
In February 2018, US Magistrate Judge Jacqueline Scott Corley determined that Grubhub correctly designated Raef Lawson as an independent contractor, dismissing his claim of misclassification in the Lawson vs. Grubhub lawsuit.
During a 2017 legal action, attorney Shannon Liss-Riordan argued that Grubhub employs terms such as "blocks" rather than "shifts" to rationalize treating drivers as contractors instead of employees.
Wallace v. Grubhub Holdings
The lawsuit titled Wallace v. Grubhub Holdings asserts that drivers including Carmen Wallace and Broderick Bryant were wrongly classified as independent contractors, contravening wage-and-hour statutes such as the Fair Labor Standards Act and relevant labor laws in Illinois and California.
Plaintiffs maintain that drivers adhere to scheduled shifts within specific zones and are prohibited from engaging in personal activities during working hours, effectively functioning as employees without receiving associated benefits. They further argue that drivers incur certain costs and may earn wages below the minimum threshold due to the company's compensation model, frequently working beyond 40 hours per week without overtime pay.
This class-action suit was initiated on June 29, 2018, in the U.S. District Court for the Northern District of Illinois, accusing Grubhub of neglecting to provide minimum wage and overtime payments mandated by federal and state regulations. The litigation is currently ongoing.
Political Statement
On November 10, 2016, shortly after President Donald Trump's election win, Grubhub CEO Matt Maloney circulated a company-wide message denouncing what he described as the "nationalist, anti-immigrant and hateful politics of Donald Trump," indicating that employees opposed to this view should consider resigning. This prompted controversy and a boycott movement on Twitter. Maloney subsequently clarified that he did not request anyone to quit for voting for Trump, stressing the company’s opposition to discriminatory conduct and hateful remarks within the workplace. Despite this clarification, the hashtag #BoycottGrubHub trended on Twitter, and Grubhub’s stock declined by 5.93% on November 11, 2016.
Referral Numbers on Yelp Listings
An August 2019 podcast episode exposed that Yelp pages for certain restaurants display Grubhub "referral numbers." Phone calls placed to these numbers are recorded and can result in commission charges for the restaurant even if no order is completed.
Cybersquatting Allegations
In June 2019, reports surfaced claiming Grubhub had registered more than 23,000 domain names using restaurants’ names without their permission to boost commission revenue and limit restaurants' online visibility. Grubhub refuted these claims, stating that restaurants had contractually consented to domain acquisitions and website development intended to promote their businesses.
Claims of Monopolistic Conduct
In April 2020, plaintiffs from New York filed a lawsuit against DoorDash, GrubHub, Postmates, and Uber Eats alleging monopolistic behavior by mandating restaurants maintain identical pricing for dine-in and delivery services. This practice purportedly compels dine-in patrons to subsidize delivery expenses while the platforms levy fees ranging from 13% to 40% of revenue—significantly affecting restaurants whose average profit margins range between 3% and 9%. The suit seeks triple damages for overcharges dating back to April 2016 and was filed in the U.S. District Court for the Southern District of New York under Davitashvili v GrubHub Inc., case number 20-cv-3000. This case raises issues concerning these companies’ operational models, market dominance, and fee structures contributing to increased consumer costs and diminished restaurant profitability. A trial date has yet to be established.
Unauthorized restaurant listings
In October 2020, several restaurants initiated a class-action lawsuit against Grubhub, accusing the company of listing their establishments without obtaining permission, at times even after explicit refusals. This practice reportedly damaged their reputations, limited their control over customer interactions and online representation, and led to decreased consumer interest. The plaintiffs highlighted that Grubhub frequently presented outdated menus featuring incorrect pricing or items no longer available, resulting in customer dissatisfaction. Additionally, Grubhub allegedly declined requests to remove these unauthorized listings. Due to the detrimental effects on restaurants, California prohibited this practice in 2021.
Free lunch promotion in New York City, 2022
On May 17, 2022, Grubhub introduced a promotional offer providing complimentary lunch orders throughout New York City. The campaign overwhelmed both Grubhub’s platform and its restaurant partners, handling close to 6,000 orders each minute. While Grubhub asserted that restaurant staff had been informed ahead of time, employees disputed this claim. The promotion faced widespread criticism for its shortcomings: restaurants struggled to fulfill demand, delivery shortages caused significant delays, food wastage increased, and customers were left dissatisfied. Numerous businesses confronted angry patrons, issued refunds, and encountered difficulties reaching Grubhub’s customer support.
Disclosure of pricing
In November 2022, Pennsylvania Attorney General Josh Shapiro filed a lawsuit against Grubhub for not adequately informing customers that prices on Grubhub might be higher than those directly at the restaurants. The inquiry revealed that Grubhub directed users to microsites containing restaurant menus as well as third-party platforms such as Yelp and Menupages. Later that month, Grubhub reached a settlement agreeing to contribute $125,000 to Pennsylvania food banks and enhance transparency regarding pricing. Under this agreement, Grubhub is required to clearly display price information on menu and checkout pages to improve consumer understanding.
Incident of food tampering
In October 2023, a restaurant owner in Long Beach, California discovered a Grubhub delivery driver consuming part of an order and then repackaging it prior to delivery. The owner advocated for the implementation of tamper-evident seals, noting that existing stickers can be easily removed. Grubhub declined interview requests but affirmed a zero-tolerance policy toward such behavior, immediately suspending the driver involved and reaching out to the affected customer to address the matter. This event highlights ongoing challenges for the company in upholding service standards amid its expanding global footprint.