Grubhub positions to do more for food delivery

Grubhub positions to do more for food delivery


Grubhub was one of the first companies with its mobile and online ordering platforms to disrupt how we order food takeout and delivery. The company continues to expand its restaurant offering, which now spans more than 80,000 local restaurants in  1,600 cities under its Grubhub, Seamless, and Eat24 applications. With sales up 50% in the June 2018 quarter, it continues to fend off competition, winning a space in consumer wallets due most likely in part to our busy schedules and certain aspects of our Digital Lifestyle.

Looking to further disrupt the restaurant industry and its reach, Grubhub recently acquired digital payment and customer loyalty program company LevelUp and began accepting PayPal’s Venmo – all to expand what it sees as its scope and scale in the delivery space.


Sales were up more than 50% in the second quarter and earnings more than doubled.

Despite competition from the likes of DoorDash, Uber Eats and even the formidable Amazon (AMZN), Grubhub continues to wow investors with its impressive growth.

Grubhub is also partnering with more big national restaurant chains as well as local eateries. The company announced a deal with KFC, Taco Bell and Pizza Hut owner Yum! Brands (YUM) earlier this year.

Grubhub may soon be able to add more chains following its acquisition of mobile technology company LevelUp, which was also announced Wednesday.

LevelUp helps restaurants develop digital payment services and customer loyalty programs. Bareburger, Chop’t and Potbelly (PBPB) are some of LevelUp’s more than 200 clients.


Source: Grubhub is winning the food delivery wars

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

Comments are closed.