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Grubhub Inc.
Russell 1000 Component
IndustryOnline platform for restaurant pick-up and delivery
Founded1996 (1996)
  • Matt Maloney
  • Mike Evans
HeadquartersChicago, Illinois, United States
Area served
United States
Key people
  • Brian McAndrews
  • (Chairman of the Board)
  • Matthew Maloney
  • (Co-Founder & CEO)
  • Adam DeWitt
  • (President & CFO)
  • Maria Belousova
  • (CTO)
RevenueIncrease US$1.07 billion (2018)
Increase US$89.75 million (2017)
Increase US$98.98 million (2017)
Total assetsIncrease US$1.54 billion (2017)
Total equityIncrease US$1.12 billion (2017)
Number of employees
2,125 (Feb. 16, 2018)
Footnotes / references

Grubhub Inc. is an American online and mobile food ordering and delivery marketplace that connects diners with local takeout restaurants. Based in Chicago, as of Q1 2019 the company has 19.9 million active users and 115,000 associated restaurants[2] across 2,200 cities in the United States.[3]


In 1999, Seamless was founded by Jason Finger and an associate.[4] In 2004, Grubhub was founded by Matthew Maloney and Michael Evans to provide an alternative to paper menus.[5] In 2013, Grubhub and Seamless merged.[6] The combined organization, Grubhub Seamless, went public in April 2014 and trades on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".[7]

Grubhub's executives include:[8]

  • Matthew Mayer Maloney, co-founder and chief executive officer[9][10]
  • Adam DeWitt, president and chief financial officer
  • Maria Belousova, chief technology officer
  • Sam Hall, chief product officer
  • Margo Drucker, senior vice president, general counsel and secretary
  • Kelley Berlin, senior vice president of people
  • Brian McAndrews, chairman of the board


Grubhub's portfolio of brands includes Seamless, AllMenus, MenuPages, LevelUp, and Tapingo. Seamless is an online and mobile food ordering platform for regional restaurants active in the U.S. and London.[11]

MenuPages was acquired by Seamless in September 2011.[12] Allmenus was acquired by Grubhub in September 2011.[13] DiningIn, an online ordering and food delivery company based in Brighton, Massachusetts, was acquired by Grubhub in February 2015.[14] Restaurants on the Run, a corporate food delivery company based in Aliso Viejo, California, was acquired by Grubhub in February 2015.[15]

In December 2015, Grubhub acquired Delivered Dish.[16] LAbite was acquired by Grubhub in May 2016.[17]

In August 2017, Grubhub entered into an agreement to acquire Eat24 from Yelp for $287.5 million, subject to regulatory review.[18] In October 2017, Grubhub announced that it completed its acquisition of Eat24.

In July 2018, Grubhub acquired LevelUp for $390 million cash.[19]

In November 2018, Grubhub announced it had completed the acquisition of Tapingo.[20]


Grubhub history[edit]

Chicago-based Grubhub was founded in 2004 by Mike Evans and Matt Maloney, to create an alternative to paper menus.[21] Two years later, in 2006, Maloney and Evans won first place in the University of Chicago Booth School of Business's Edward L. Kaplan New Venture Challenge with the business plan for Grubhub.[22]

In November 2007, Grubhub secured $1.1 million in Series A funding, led by Amicus Capital and Origin Ventures for the purpose of expanding into San Francisco and New York markets.[23]

In March 2009, Grubhub earned $2 million in Series B funding, led by Origin Ventures and Leo Capital,[24] which was followed by $11 million in Series C funding, led by Benchmark Capital in November 2010.[25] $20 million in Series D funding was raised (led by DAG Ventures) in March 2011.[26]

In September 2011, Grubhub secured $50 million in Series E funding and acquired New York-based competitor Dotmenu, the parent company of Allmenus and Campusfood.[27] In December 2015, Grubhub acquired Delivered Dish, a restaurant delivery service in seven markets across the Pacific Northwest and Southwest, including Denver, Las Vegas, San Diego, Portland, El Paso and Albuquerque.[28] LAbite, a Los Angeles-based restaurant delivery service, was acquired by Grubhub in May 2016.[29] Eat24, a San Francisco-based food ordering platform was acquired by Grubhub in October 2017.[30] Certain assets were acquired from 11 franchisee-owned OrderUp markets in September 2018. Certain assets from 27 OrderUp markets were acquired in 2017.[31] LevelUp, a Boston-based diner engagement and payment solutions platform was acquired by Grubhub in September 2018.[31] Tapingo, an Israel-based platform for campus food ordering was acquired by Grubhub in November 2018.[20]

Seamless history[edit]

In 1999, New York lawyer Jason Finger founded SeamlessWeb to provide companies with a web-based system for ordering food from restaurants and caterers. Six years later, in 2005, SeamlessWeb introduced a free ordering service to consumer diners to complement the existing corporate-ordering service.[32] In April 2006, SeamlessWeb was acquired by Aramark and integrated into its Food, Hospitalities, and Facilities segment.[33]

Jonathan Zabusky was named president of Seamless in 2009, and by June 2011, Seamless was re-privatized, as Boston-based Spectrum Equity Associates invested $50 million for a minority stake in the company from Aramark. The company then changed its name from SeamlessWeb to Seamless.[34]

In September 2011, Seamless acquired MenuPages,[35] and in February 2012, Seamless released an iPad app.[36]

Grubhub and Seamless merger[edit]

In May 2013, Grubhub and Seamless announced that they were merging, with Seamless representing 58% of the equity and GrubHub representing 42% of the equity of the combined business; the merger was finalized in early August 2013.[37]


Grubhub went public in April 2014 and trades on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".[38]


In June 2014, Grubhub began offering delivery for restaurants that don't operate their own delivery service. The company is now delivering in more than 50 markets across the U.S.[39] (publicly announced markets include Atlanta, Phoenix, Philadelphia, Los Angeles, San Francisco/Bay Area, D.C., Southeast Florida, Portland, Denver, Pittsburgh, Detroit, San Diego, Brooklyn/Queens (NYC), Chicago and Las Vegas).

In July 2018, Grubhub announced that it expanded its delivery capabilities to 28 new cities in the US.[40][41][42]

Grubhub's UK competitors are Deliveroo, Just Eat, and UberEATS. In the US, its competitors include UberEATS, Postmates, EatStreet, Amazon Restaurants and Online Restaurants.[43]


On November 10, 2016, after the victory of President Donald Trump in the general election, Grubhub President and CEO Matt Maloney sent a company-wide memo to employees saying that he rejected "nationalist, anti-immigrant and hateful politics of Donald Trump". The Washington Times reported that Maloney "unleashed a political screed after the Nov. 8 election and said that those who disagree with its anti-Trump views should resign."[44][45]

After a Twitter boycott campaign was initiated, Maloney later claimed his words were "misconstrued", adding "I want to clarify that I did not ask for anyone to resign if they voted for Trump. I would never make such a demand. To the contrary, the message of the email is that we do not tolerate discriminatory activity or hateful commentary in the workplace, and that we will stand up for our employees."[44] In a tweet that was later deleted, Maloney added: "To be clear, Grubhub does not tolerate hate and we are proud of all our employees - even those who voted for Trump."[45] By Thursday night, the hashtag #BoycottGrubHub was trending on Twitter.[46] Following Maloney's statement, On November 11, 2016 the company's shares dropped 5.93%.[47][46]

Underpaid Workers and Labor Lawsuits

Grubhub like many companies hiring workers as "independent contractors" in the "Gig Economy", has faced a labor lawsuit surrounding fair wages, much like it's counterparts DoorDash , Uber Eats, and Postmates. The legal debate is ongoing on whether their workers should be defined as employees and not independent contractors, to ensure fair wages and worker protection. In a 2017 lawsuit , An attorney reports that the company uses words such as “blocks” instead of “shifts orders, Liss-Riordan said the company uses “Grubhub speak” to re-label words and create a false narrative to justify its misclassification of drivers as contractors.[48]

Grubhub also wants to keep a current 2019 lawsuit out of the public eye. The lawsuit claims it’s ripped off restaurants, it scrambles to quietly contain the fallout from irate restaurant owners.

The giant food delivery company is asking a Philadelphia federal judge to toss a lawsuit claiming that Grubhub has been charging restaurants each time diners pick up the phone — regardless of whether the calls result in a food order generated by Grubhub.

The lawsuit, filed by the owner of an Indian restaurant in Philadelphia called Tiffin, is seeking class-action status.[49]

The popular food delivery service company GrubHub has been hit with a wage and hour lawsuit by its drivers, who work as contractors.

The GrubHub contractor lawsuit alleges that these workers are misclassified as independent contractors when they should actually be considered employees, and given the benefits that employees are entitled to under federal and state labor laws.

The GrubHub contractor lawsuit ( ongoing beginning in 2017) was brought by plaintiffs Broderick B., a current driver for GrubHub, and Carmen W., who stopped driving for the company in March 2017. According to their lawsuit, GrubHub mislabeled its drivers as contractors, even though the delivery service controls their work.

“Although classified as independent contractors, GrubHub delivery drivers are employees under federal and state law,” argues the complaint. “GrubHub directs the delivery drivers’ work in detail, instructing drivers where to report for their shifts, how to dress, and where to go to pick up or await deliveries.”

Indeed, the GrubHub contractor lawsuit claims that the work conditions of these drivers make them clearly employees rather than contractors. For instance, drivers work on scheduled shifts, and they are required to stay within a certain area. “The drivers as a general matter cannot engage in personal non-work activities during their GrubHub shifts,” the complaint states, meaning that they essentially function as employees.

However, they allegedly do not receive the same benefits that an employee does. GrubHub drivers are allegedly required to pay many of their own expenses, such as gas and transportation. Because of how they’re paid (a flat fee for each delivery), the plaintiffs claim they may often be paid below federal or state minimum wage, even when they work full time. Many drivers allegedly work more than 40 hours a week, but do not receive overtime rates for this work.

Broderick and Carmen filed their GrubHub contractor lawsuit on behalf of themselves and all others in a similar situation.

According to the GrubHub contractor lawsuit, the company violated a number of FLSA and Illinois laws by failing to pay overtime and failing to pay minimum wage. The plaintiffs filed their class action GrubHub contractor lawsuit on June 29, 2018, in the U.S. District Court for the Northern District of Illinois.

Misclassifying workers like GrubHub delivery drivers as independent contractors allows a company to avoid paying minimum wage, overtime pay, health benefits, insurance, and social security costs. Workers improperly classified in this manner may feel like they have no way to stand up for themselves, but they may be able to pursue litigation.[50]


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External links[edit]