Grubhub Inc., headquartered in Chicago, Illinois, operates as a prominent American online and mobile platform dedicated to facilitating the ordering and delivery of prepared food. Users can leverage Grubhub's services to conveniently browse menus from a diverse selection of restaurants, place orders, and track deliveries through their website or mobile app.
Jason Finger, a New York lawyer, founded SeamlessWeb in 1999 to provide businesses with a web-based platform for ordering food from restaurants and caterers.
Grubhub was founded in 2004 by Mike Evans and Matt Maloney as an alternative to paper menus.
Mike Evans and Matt Maloney founded the original Grubhub in Chicago in 2004. They aimed to replace traditional paper menus.
In 2005, SeamlessWeb introduced a free ordering service for individual diners, complementing its existing corporate ordering platform.
Aramark acquired SeamlessWeb in April 2006 and integrated it into its Food, Hospitalities, and Facilities segment.
In 2006, Maloney and Evans won first place in the University of Chicago Booth School of Business's Edward L. Kaplan New Venture Challenge for their Grubhub business plan.
Grubhub secured $1.1 million in Series A funding in November 2007, led by Amicus Capital and Origin Ventures, to expand into San Francisco and New York.
In March 2009, Grubhub raised $2 million in Series B funding led by Origin Ventures and Leo Capital.
Jonathan Zabusky was appointed president of Seamless in 2009.
Grubhub received $11 million in Series C funding led by Benchmark Capital in November 2010.
DAG Ventures led a $20 million Series D funding round for Grubhub in March 2011.
Seamless was re-privatized in June 2011 when Boston-based Spectrum Equity Associates made a $50 million minority investment, prompting a name change from SeamlessWeb to Seamless.
In September 2011, Grubhub raised $50 million in Series E funding. This funding round coincided with their acquisitions of New York-based competitor Dotmenu, the parent company of Allmenus and Campusfood, and the acquisition of AllMenus.
Seamless acquired MenuPages in September 2011.
Seamless launched its iPad app in February 2012.
Grubhub and Seamless announced their merger in May 2013, with Seamless holding 58% equity and GrubHub holding 42% in the combined company.
The merger of Grubhub and Seamless was finalized in early August 2013.
Grubhub Seamless went public in April 2014 on the New York Stock Exchange (NYSE) under the ticker symbol GRUB.
Grubhub went public in April 2014, with its shares priced at $26. The company was listed on the New York Stock Exchange (NYSE) under the ticker symbol "GRUB".
Grubhub introduced delivery services for restaurants that didn't have their own delivery infrastructure in June 2014.
Grubhub expanded its reach in February 2015 by acquiring DiningIn, an online ordering and food delivery company based in Brighton, Massachusetts, and Restaurants on the Run, a corporate food delivery service in Aliso Viejo, California.
Grubhub further expanded its presence in December 2015 by acquiring Delivered Dish, a restaurant delivery service operating in seven markets across the Pacific Northwest and Southwest, including Denver, Las Vegas, San Diego, Portland, El Paso, and Albuquerque.
Beginning on April 14, 2016, delivery apps like Grubhub faced accusations of using their market dominance to enforce price parity between dine-in and delivery menus, allegedly inflating costs for dine-in customers to subsidize delivery fees.
In May 2016, Grubhub acquired LAbite, a restaurant delivery service based in Los Angeles.
On November 10, 2016, following Donald Trump's presidential election victory, Grubhub CEO Matt Maloney sent a company-wide memo expressing his rejection of Trump's political views and stating that employees who disagreed with his stance had "no place here." This sparked immediate controversy and calls for boycotts.
On November 11, 2016, Matt Maloney attempted to clarify his previous memo, stating his words were "misconstrued" and that he never asked employees who voted for Trump to resign. However, the hashtag #BoycottGrubHub continued to trend, and the company's shares dropped nearly 6%.
By 2016, Grubhub's delivery services were available in over 50 markets across the United States.
In August 2017, Grubhub reached an agreement with Yelp to acquire Eat24 for $287.5 million, pending regulatory approval.
Following regulatory approval, Grubhub finalized its acquisition of Eat24 in October 2017.
In 2017, attorney Shannon Liss-Riordan filed a lawsuit against Grubhub, alleging the company used misleading language, such as "blocks" instead of "shifts," to misclassify drivers as independent contractors.
In February 2018, a US Magistrate Judge ruled in favor of Grubhub in the Lawson vs. Grubhub case, finding that the company correctly classified plaintiff Raef Lawson as an independent contractor.
On June 29, 2018, a class-action lawsuit was filed against Grubhub in the U.S. District Court for the Northern District of Illinois, alleging violations of the Fair Labor Standards Act (FLSA) and Illinois labor laws, including failure to pay overtime and minimum wage.
In July 2018, Grubhub expanded its delivery services to 28 additional cities in the United States.
Grubhub acquired specific assets from 11 franchisee-owned OrderUp markets in September 2018, following the acquisition of assets from 27 OrderUp markets in 2017.
In September 2018, Grubhub acquired LevelUp, a Boston-based diner engagement and payment solutions platform, for a reported $390 million in cash.
Grubhub finalized its acquisition of OrderUp in October 2018.
Grubhub acquired Tapingo, a San Francisco-based platform for campus food ordering, in November 2018.
In late 2018, Grubhub discontinued the Eat24 brand.
Grubhub took over SkipTheDishes' operations in the United States in March 2019 after SkipTheDishes decided to exit the U.S. market.
In June 2019, reports surfaced accusing Grubhub of registering over 23,000 web domains using restaurant names without consent, allegedly to boost commissions and hinder restaurants' online presence. Grubhub disputed these claims, stating restaurants agreed to these terms in their contracts.
In August 2019, the podcast "Underunderstood" revealed that Grubhub used "referral numbers" on Yelp listings, which could lead to restaurants being charged commission fees even without resulting orders.
By 2019, Grubhub reached 19.9 million active users and partnered with 115,000 restaurants in 3,200 U.S. cities.
Grubhub launched its monthly subscription program, Grubhub+, in February 2020. Grubhub+ offers free, unlimited food delivery from participating restaurants for a monthly fee.
In April 2020, a group of New Yorkers filed a class-action lawsuit against Grubhub, DoorDash, Postmates, and Uber Eats, accusing them of monopolistic practices by requiring restaurants to maintain consistent pricing for dine-in and delivery, ultimately harming consumers.
On May 12, 2020, Uber made a takeover offer to Grubhub.
On June 9, 2020, Netherlands-based Just Eat Takeaway announced it would acquire Grubhub for $7.3 billion in stock.
In October 2020, a class-action lawsuit was filed against Grubhub by restaurants alleging the company listed them on its platform without permission, causing reputational damage, loss of customer control, and inaccurate menu information.
Throughout 2020, Grubhub launched a series of animated television commercials showcasing people ordering food through their app.
Amidst the coronavirus pandemic in mid-2020, as demand for food delivery services surged, Grubhub prioritized driver safety by introducing contact-free delivery and offering pickup options for customers.
In January 2021, Grubhub's "Delivery Dance" commercial, featuring people dancing to "Soy Yo" by Bomba Estereo after ordering food, became a viral meme. While popular, the commercial was also criticized for being obnoxious and drew comparisons to a similar ad from Kroger.
On April 1, 2021, Food Theorist YouTuber MatPat began a series exploring the theory that Grubhub's commercials were connected to the Nickelodeon shows "The Adventures of Jimmy Neutron, Boy Genius" and "Fairly OddParents."
On June 10, 2021, Grubhub stockholders approved the acquisition by Just Eat Takeaway.
The sale of Grubhub to Just Eat Takeaway was finalized on June 15, 2021. Grubhub's logo was updated to incorporate the Just Eat Takeaway house.
On August 21, 2021, Food Theorist YouTuber MatPat concluded his series exploring the possible connections between Grubhub commercials and Nickelodeon shows.
In 2021, Grubhub was acquired by the Dutch company Just Eat Takeaway.
In 2021, Grubhub partnered with Yandex to integrate Yandex's delivery robots into its platform for food deliveries on college campuses.
In 2021, California banned Grubhub and other delivery platforms from listing restaurants without their consent, citing the practice as abusive.
In April 2022, Just Eat announced it was considering selling Grubhub due to pressure from activist investor Cat Rock Capital to focus on European markets.
Grubhub's May 17, 2022, promotion offering free lunch in New York City backfired disastrously. The overwhelming demand of nearly 6,000 orders per minute crippled Grubhub's system and restaurants, leading to unfulfilled orders, wasted food, and frustrated customers and restaurant workers.
In July 2022, Grubhub partnered with Amazon to offer Prime customers a free year of Grubhub+. This deal gave Amazon a 2% stake in the company, with the option to acquire up to 15% based on performance.
Pennsylvania Attorney General Josh Shapiro sued Grubhub in November 2022 for lack of transparency in pricing, alleging the platform failed to disclose potential price differences between orders placed through Grubhub versus directly from restaurants.
In October 2023, a Grubhub driver in Long Beach, California was caught on camera eating from a customer's order before repackaging and delivering it. The restaurant owner was able to intercept the order, but the incident raised concerns about food safety and the security of Grubhub's delivery system.
In May 2024, Amazon announced that Grubhub+ would be permanently included with Amazon Prime memberships.