At the same time, Just Eat Takeaway launched a $7.1 billion bid, which Grubhub accepted in June 2020. In 2020, Uber approached Grubhub with an acquisition offer, after failing to acquire DoorDash. It has been criticised for setting up phony websites of local businesses and earning commission from routed phone calls, which may have not ended in a purchase.

Grubhub has, like most food delivery apps in the US, had its fair share of controversy. It has climbed from $500 million in 2016 to $1.8 billion in 2020. From a high of 70 percent, Grubhub sits at less than 20 percent marketshare in 2020, behind DoorDash at 45 percent and Uber Eats (with Postmates) at 30 percent.Įven with this loss of marketshare, Grubhub has continued to generate more revenue every year since going public. Since 2015, Grubhub has steadily lost marketshare in the US, as Uber Eats and DoorDash claimed more users. In 2019, the company posted its first ever yearly loss, which Maloney blamed on delivery services and the competitive market. 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.

Grubhub vs seamless reddit