GrubHub Inc. and Seamless North America LLC, two of the top food-delivery websites in the U.S., have agreed to combine their companies to take on rivals in the growing market for online meal orders.
GrubHub Chief Executive Officer Matt Maloney will become CEO of the merged group, and Seamless CEO Jonathan Zabusky will serve as president, the two said in an interview. Neither company is paying to acquire the other, Maloney said, declining to share financial details of the agreement. The deal now awaits the approval of U.S. regulators, he said.
Food-delivery sites and mobile applications are gaining in popularity as more people order their meals online, instead of calling or picking up orders at restaurants. That’s also driving consolidation, as startups join forces to head off competition from review sites such as Yelp Inc. (YELP) The merger will help the combined company accelerate the addition of users and restaurants, said Maloney, who co-founded GrubHub in 2004.
“This has nothing to do with cost savings; it has everything to do with increasing growth,” Maloney said. “We’re totally focused on the top line and how we continue to drive more orders for our restaurants.” READ MORE