Grubhub still generates most of its revenue through non-delivery orders, however it has become a larger part of the business. But, due to stock market pressure, Grubhub decided to start providing delivery service to some restaurants. Grubhub CEO Matt Maloney called this “the dumbest business you could ever be in”, as it offered razor-thin margins even with 30 percent commission.
Instead of simply aggregating takeaways, these new platforms provided delivery service for restaurant, at a higher commission. In 2013, the two companies agreed to merge, creating a powerhouse that controlled 70 percent of takeout orders.Īs the two merged, a new form of food delivery was beginning to emerge in California, led by Postmates, DoorDash and Uber Eats. For the first decade, Grubhub and Seamless dominated in their respective markets, but began to encroach on each other’s in the early 2010s as food delivery started to take off.
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