Yesterday, GrubHub acquired Yelp’s food delivery platform Eat24 for $287.5m, in a play to gain as much of a lead on Uber and Amazon as possible.
The deal includes a 5-year partnership in which Yelp will integrate GrubHub into its restaurant listings, and GrubHub will pay a fee for every order placed through the site.
Following the announcement, Yelp’s stock immediately jumped 20% indicating Wall street executives trust GrubHub more to manage Yelp’s data than Yelp itself.
The ‘Hub’s been hungry
GrubHub’s been on an acquisition spree, snatching up Groupon’s ordering platform, OrderUp, earlier this week, and Boston-based delivery service, Foodler, back in June.
A recent survey showed that 34% of online delivery customers use GrubHub even before the deal, and with Eat24 under its umbrella, they will own the majority of the market, with a network of 75k restaurants at their disposal.
According to the same survey, just 20% of users are UberEats loyalists, and an even smaller 11% use Amazon for food deliveries. That said, having either of those companies sniffing around your space is enough to give any CEO heartburn…