Today, Seamless and Grubhub announced they were merging.
With two of the largest food-delivery sites combining forces, here are five fast facts you need to know.
1.The Food Ordering Industry is Growing Rapidly
Both sites are the premier services for food ordering, and the industry is gaining traction. The merger will expand the sites for diners and companies in more than 500 cities across the country to order from more than 20,000 local takeout places. This is going to increase revenue for both companies, since 2012 saw them make over $100 million in revenue with $875 million in combined food sales.
2.Both Companies have Strong Mobile & Online Apps
Both companies hope to refine their online and mobile apps. Since both organizations have a large selection of diners and restaurants, the combined networks will increase and offer more selections across the globe especially in the U.K. (Seamless has access to over 12,000 restaurants including overseas in the U.K). The online and mobile delivery systems— including Seamless's iOS app and Grubhub's "Track Your Grub" delivery system — were responsible for a large portion of the revenue the companies made last year.
3. Here's what Grubhub CEO said about Seamless
Seamless and Grubhub have been competitors for years, but haven't really spoken about each other. But, here's what Grubhub CEO Matt Maloney said to BetaBeat in 2011 about Seamless:
I typically don’t talk this much about Seamless because we don’t view them as incredibly strong competition for what we’re doing … Seamless fundamentally is a corporate catering business. They were founded years and years and years ago to do just that. And they’re still best in the business for corporate. They recently got into the consumer and residential pick-up and delivery. And they do it well in New York, but they really have zero business anywhere else. We don’t even consider them competition anywhere other than Manhattan specifically.
4. Grubhub's Chief Will Be CEO
Grubhub's co-founder Matt Maloney will become the CEO of the new company while Seamless's CEO Jonathan Zabusky will become the new president, according to the company's press release.The chairman of the board will be Brian McAndrews, who served as an independent director for Seamless. Shareholders from both firms will have an equal share on the new board.
5. The Combined Company Could Dominate the Industry
While the merger is still waiting on regulatory approval, both companies could succeed in conquering online food ordering industry. The combined databases along with equal control on both sides can give the company the chance to satisfy a larger amount of customers and innovate the restaurant industry. Check back again as more details emerge.