Chicago based GrubHub and New York based Seamless have been rivals for quite some time but very soon GrubHub will be merging with Seamless. The merger will result in formation of a company with a turnover of over $100 million. Together, they have over 20000 local restaurants in 150 cities all over the country.
The financial details of the deal have not been made public yet. After the merger, Matt Maloney who is the CEO of GrubHub will continue to work as CEO of the combined restaurant firm. The CEO of Seamless, Jonathan Zabusky will hold the position of president. Mike Evan will serve as the COO of the combined firm. The name of the combined firm has not been revealed yet. GrubHub has about 350 workers and Seamless has over 300 workers.
Mike is quite excited about the merger. The expanded restaurant network, increased number of diners and products from the combined firm will surely help them make good revenue and deliver the best quality service to its patrons.
Before GrubHub was launched in 2004, Mike and Matt worked as software engineers at Apartments.com. GrubHub has rapidly grown to become one of the popular eating joints of Chicago. GrubHub has mainly concentrated on diners placing orders for food at home for dinner. On the other hand, Seamless has concentrated on corporate world by connecting eating joints with workers who could pay for their meals. Mike is also excited about Seamless’s corporate client base as it is doing good business in various cities in the U.S.
Matt claimed that GrubHub’s smartphone software has helped them considerably in increasing the frequency of orders. Nearly 30% of GrubHub’s orders are placed through the mobile app. Meanwhile, Seamless claims that over 40% of their orders are placed through their mobile app. They had launched an iPad app last year.
In 2011, GrubHub had acquired Dotmenu which allowed them to make business with customers at college campuses. Also, in 2011, Seamless had acquired Menupages which allowed them to serve over 4000 clients in the corporate sector.
Jonathan claimed that the merger will not result in eliminating jobs. He also said that merger will be an opportunity to bring about the best of the two well-known restaurants.The merger has been brought by Citigroup Inc. They were hired by GrubHub to direct the initial public offering. Matt now only wants to focus on the merger and has not interests in talking about IPO at the moment.