News Tag: Financial

GrubHub Seamless Announces T. Rowe Price Ownership Stake

Leading Investment Manager Becomes Shareholder Through Private Sale

CHICAGO, Aug. 20, 2013 /PRNewswire/ — GrubHub Seamless, the nation’s leading online and mobile food ordering company, today announced that strategies managed by T. Rowe Price, the Baltimore-based investment manager that manages more than $600 billion in assets, have become shareholders in the newly merged company through a private secondary sale.

(Logo: http://photos.prnewswire.com/prnh/20130820/CG66276LOGO)

The T. Rowe Price shareholders, led by Portfolio Manager Henry Ellenbogen, gained an ownership stake in the company following the close of the GrubHub Seamless merger transaction by purchasing some shares from early investors. Financial terms of the sale were not disclosed.

“We are thrilled to add T. Rowe Price to our valued network of strategic stakeholders, further strengthening our position in the industry,” said Matt Maloney, GrubHub Seamless CEO. “Given their impressive track record of successfully investing in high growth, scalable businesses, we will no doubt benefit from their insights as we continue building our restaurant network, attracting new diners and generating profitable growth.”

“We are excited to become a shareholder of GrubHub Seamless,” said Ellenbogen. “The foundation laid by both companies prior to the merger positions the combined organization for incredible growth in a largely untapped market.”

About GrubHub Seamless
GrubHub Seamless is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. GrubHub Seamless owns a portfolio of brands that includes GrubHub (www.grubhub.com), Seamless (www.seamless.com), MenuPages (www.menupages.com) and Allmenus (www.allmenus.com). The organization’s free online and mobile ordering platforms allow diners and 4,000+ corporate businesses to order directly from approximately 25,000 takeout restaurants in more than 500 U.S. cities and London, and every order is supported by the organization’s 24/7 customer service. GrubHub Seamless is a privately held company with offices in Chicago, New York City, Salt Lake City and London.

Seamless North America LLC and GrubHub Inc. Complete Merger

CHICAGO and NEW YORK, Aug. 9, 2013 /PRNewswire/ — Seamless North America LLC and GrubHub Inc. today announced they have completed their previously announced merger.

The combined organization, operating under the name GrubHub Seamless, will continue to support both the GrubHub and Seamless brands, connecting diners with approximately 25,000 restaurants for online and mobile ordering across the country and in London. In the first half of 2013, the combined organization processed approximately 130,000 orders a day.

“These companies are the standard bearers of online ordering and have been for more than 15 years, charting the course for takeout technology and generating billions of dollars for local restaurants,” said Matt Maloney, GrubHub Seamless CEO. “We are excited to take our collective experience and move forward together to set a new industry standard for restaurants, diners and corporate clients.”

About GrubHub Seamless
GrubHub Seamless is the nation’s leading online and mobile food-ordering company dedicated to connecting hungry diners with local takeout restaurants. GrubHub Seamless owns a portfolio of brands that includes GrubHub (www.grubhub.com), Seamless (www.seamless.com), MenuPages (www.menupages.com) and Allmenus (www.allmenus.com). The organization’s free online and mobile ordering platforms allow diners and 4,000+ corporate businesses to order directly from approximately 25,000 takeout restaurants in more than 500 U.S. cities and London, and every order is supported by the organization’s 24/7 customer service. GrubHub Seamless is a privately held company with offices in Chicago, New York, Salt Lake City and London.

Seamless and GrubHub Announce Merger

Combined Networks, Services and Products Will Drive Additional Restaurant and Diner Value

Enhanced Financial Strength Will Allow Organization to Better Scale in Rapidly Growing Food-Ordering Industry

CHICAGO and NEW YORK, May 20, 2013 /PRNewswire/ — Seamless North America LLC and GrubHub Inc. today announced the signing of a definitive agreement to merge two of the nation’s premier services for ordering takeout. The merger will create a combined company well positioned to drive more orders to restaurants, deliver a better experience for hungry diners and enhance services to corporate clients.

The combined organization will enable diners and companies in more than 500 cities across the U.S. to order from more than 20,000 local takeout restaurants. In 2012, the online and mobile platforms of the two organizations sent approximately $875 million in gross food sales to local takeout restaurants, resulting in combined revenue well in excess of $100 million.

“We are excited to combine the strengths of these two dynamic organizations in an industry that is rapidly gaining traction. We believe the merger will enhance the products we are able to offer both our diners and restaurants,” said Matt Maloney, GrubHub co-founder and CEO. “GrubHub and Seamless share a common goal to generate more business for local takeout restaurants while providing the best possible service to diners. By combining our complementary restaurant and diner networks, we are well positioned for continued growth in a massive market.”

“By bringing together some of the industry’s most celebrated products, including Seamless’s award-winning iPad app and GrubHub’s innovative Track Your Grub, we will be able to drive more value to all company stakeholders,” said Jonathan Zabusky, CEO of Seamless. “Both companies also share a strong commitment to provide world-class service to restaurants, diners and corporate clients. This merger is an opportunity to glean the best from each platform and improve upon what we bring to all of our partners.”

Key strategic benefits of the merger include:

  • Broader network and product offerings. The expansive network and diversified products and services of the combined organization will strengthen the company’s ability to serve restaurants and diners across the U.S. and U.K.
  • Accelerated innovation. The anticipated pooling of the combined organization’s research and technology will help to streamline product development and better address the evolving needs of this dynamic industry.
  • Enhanced financial flexibility and strength. The merger will allow the company to pursue growth opportunities while continuing to invest in its current business.

Matt Maloney will serve as chief executive officer of the new organization, and Jonathan Zabusky will serve as president. GrubHub and Seamless shareholders will both have significant representation on the combined company’s Board of Directors. Brian McAndrews, an independent director on the Seamless board prior to this transaction, will serve as chairman of the new, combined board. The merger is subject to regulatory approval.

The combined company’s management team is expected to draw upon the experienced group of leaders from both companies. As well, the combined organization’s name and marketing brands are expected to be determined following regulatory approval.

Latham & Watkins LLP acted as legal counsel to Seamless. Citi served as financial advisor and Goodwin Procter acted as legal counsel to GrubHub.

About GrubHub
GrubHub is a leading online and mobile food-ordering service that shows diners local restaurants available for delivery or pick up. Available in more than 500 cities across the nation, GrubHub features more than 20,000 online ordering restaurants and, as the parent company of Allmenus, lists approximately 250,000 restaurant menus. Diners who order through GrubHub’s free website or mobile apps can pay with cash, credit or PayPal™, and every order is supported by GrubHub’s 24/7 customer service. Founded in 2004, GrubHub is a privately held company headquartered in Chicago.

About Seamless
Seamless is a leading mobile and online service for ordering delivery and takeout food from more than 12,000 restaurants in the U.S. and UK. Seamless serves diners and many of the world’s largest companies across cities including New York, Los Angeles, Washington DC, Boston, Chicago, San Francisco, Philadelphia, Houston, Austin, Seattle, Portland, Miami, London and other major U.S. cities. The company offers mobile applications for iPad®, iPhone®, Android™, and BlackBerry® and owns MenuPages®, a comprehensive mobile and web provider of up-to-date menu content.

GrubHub Secures $50 Million and is Acquiring Campusfood and Allmenus

Company to Focus on its Increasing Footprint and Mobile Development

CHICAGO, Ill. (September 14, 2011) – GrubHub, a web and mobile service that connects diners to restaurants and simplifies online ordering for delivery and pick up, has raised $50 million in Series E funding to aggressively focus on its mobile development and acquire New York-based Dotmenu, the parent company of Campusfood and Allmenus. This Series E funding is led by Lightspeed Ventures with Mesirow Financial, Benchmark Capital, Greenspring Associates and DAG Ventures participating. Terms of the acquisition will not be disclosed.

“Since starting GrubHub with my partner Mike Evans in his apartment in 2004, we’ve sent over $200 million in delivery and pick up orders to independent restaurants across the country,” said Matt Maloney, GrubHub co-founder and CEO.  “With our unwavering focus on providing the best service to diners and the most efficient technology to restaurant owners, we have grown to become the leader in the online ordering space. It is precisely for this reason that we are acquiring Dotmenu. Dotmenu has shown great expertise in servicing the college market, and by combining our extensive networks, we will become the foremost resource for diners and restaurants for their online ordering needs.”

The Series E and Dotmenu acquisition comes just six months after GrubHub raised $20 million in funding led by DAG Ventures. The funding rounds, coupled with the acquisition, strengthen GrubHub’s position as the category-defining leader in the industry.

Through the acquisition, GrubHub will have the largest restaurant listing in the country with 250,000 restaurant menus in over 50 major cities and countless college towns across the US.  The two companies are projected to send over $225 million in combined order revenues to independent restaurants in 2011, and will continue together to achieve more aggressive growth in the years to come.

“GrubHub has a strong presence in the top US markets,” said Michael Saunders, Founder and President of Dotmenu.  “This, combined with our network across more than 300 college campuses, allows us to build upon the strong relationship we have with our diners long after they graduate. The acquisition will enable us to make an immediate impact on our restaurants by sending more orders their way.”

GrubHub is free for diners who order and pay for their meals with cash, credit or PayPal™. Restaurants pay commissions for each online order they receive from GrubHub, and every order is supported by GrubHub’s 24/7 customer service. Restaurants that do not currently partner with GrubHub can still list their telephone numbers and menus for free.

Visitors to the site or mobile users enter their address to see every local restaurant that delivers to them. Diners can view menus and coupons, read reviews and order for free online, by phone or through the GrubHub iPhone and Android apps.

 

“By combining its ability to aggressively scale its footprint and mobile platforms with Dotmenu’s proven leadership in college markets across the country, GrubHub is the clear leader in the online ordering space,” said Bill Gurley, general partner of Benchmark Capital. “This move will make GrubHub a household name, such as Benchmark’s other on-line portfolio companies OpenTable, Yelp and Zillow.”

There are more than 300,000 delivery and takeout restaurants in the country. On average, GrubHub users order out more than 10 times a month and over 22 percent of GrubHub’s revenues come through mobile orders. Pickup and delivery are the fastest growing segments in the restaurant industry, which is one of the largest sectors of the U.S. economy. With more people searching for restaurants and ordering food on-line and through smartphones, the opportunity for continued growth is substantial.

“GrubHub and Dotmenu have a shared vision to make online and mobile food ordering easier and more efficient for diners and restaurants,” said Maloney. “The acquisition is a natural fit for us and we are extremely excited to be able to share our mobile capabilities with their expansive network of diners and restaurants. This is an amazing opportunity for both companies.”

About GrubHub
GrubHub is a ventured-backed company founded in 2004 by Chicago-based software engineers Matt Maloney and Mike Evans.  The website shows consumers all of the local restaurants that deliver to them and allows diners to order directly online, by phone or through the GrubHub iPhone and Android app. Both apps are free from their respective app markets, and it is also free for diners to order online at GrubHub.com.

The rapidly growing company currently services Chicago, New York, Los Angeles, San Francisco, Boston, Philadelphia, Washington D.C., San Diego, Orange County, Oakland, Seattle, Portland, Denver, Boulder, Miami, Dallas, Fort Worth, Houston, and Phoenix, with plans to add more cities in 2011.

About Dotmenu

For over a decade now, Dotmenu has been making it easier to stuff food into people’s faces. Thanks to the massive growth of our flagship websites Allmenus and Campusfood, Dotmenu has expanded its waistline to become the largest online food delivery network in the world with over 2 million registered users, nearly half of whom are college graduates.  Having started out on just 18 campuses in 2000, Campusfood is now the number one late-night pizza and wings solution on 300 college campuses. Allmenus boasts over 250,000 menus, connecting famished Americans with their favorite restaurants in nearly every major city.

For further information: Media contact: press@GrubHub.com

GrubHub Secures $20 Million from DAG Ventures and Benchmark Capital

Company to Focus on R&D, Acquisitions and Mobile Apps

CHICAGO, Ill. (March 9, 2011) – GrubHub, a web and mobile service that connects diners to restaurants and simplifies online ordering for delivery and carry-out, has raised $20 million in Series D funding led by DAG Ventures with Benchmark Capital participating. The new round comes after preemptive interest and just four months after the company’s $11 million funding led by Benchmark in November 2010. The Series D funding will enable GrubHub to expand its investment in R&D, acquisitions and mobile applications while increasing its reach to more new markets. The company has raised $34 million to date.

“GrubHub is the market leader in the restaurant online ordering space,” said John Cadeddu, Managing Director at DAG Ventures. “GrubHub has clearly demonstrated its ability to double its growth year over year by successfully launching new markets and driving more orders through its mobile platform. This is a scenario where both the business model and leadership is top in its class, and our investment can be put to immediate use to fuel growth and reinforce market dominance.”

Frustrated by the lack of restaurant delivery information available on the Internet, founders Matt Maloney and Mike Evans created GrubHub in 2004 to organize and simplify restaurant information available to consumers. Visitors to the site or mobile users enter their address to see every local restaurant that delivers to them. Diners can view menus and coupons, read reviews and order for free online, by phone or through the GrubHub iPhone and Android apps.

“Right now, with over 13,000 restaurant menus on our site, we have one of the largest networks of independent restaurants,” said Matt Maloney, co-founder and CEO of GrubHub. “Within the next three months, we’ll list over 80,000 restaurants. By connecting hungry diners to all their neighborhood restaurants, we are providing a valuable service to consumers and restaurants.”

GrubHub sent $85 million in orders to restaurants in 2010 and is projected to send $200 million in orders by the end of this year.

GrubHub Secures $11 Million in Investment Led by Benchmark Capital

CHICAGO, IL (Nov. 15, 2010) —GrubHub, a web and mobile service that organizes restaurant data for consumers and simplifies online ordering for delivery and takeout, has closed $11 million in Series C funding from Benchmark Capital. Benchmark Capital is the investment group behind well-known Internet consumer brands such as OpenTable, Yelp, Zillow, Twitter and eBay. The series C funding will allow GrubHub to heavily invest resources to further enhance its online and mobile solutions, and to expand marketing and sales efforts to support its growth. The company has raised $14.1 million to date.

“Since its initial launch in 2004, GrubHub’s growth has been extraordinary,” said Bill Gurley, general partner of Benchmark Capital. “I am excited to work with two remarkable founders in Matt Maloney and Mike Evans, and I am also thrilled about the opportunity to partner again with OpenTable founder and GrubHub board Chairman Chuck Templeton. The team has clearly demonstrated their ability to successfully launch new markets, scale their business, and build a brand that is highly valued by its customers.”

Frustrated by the lack of restaurant delivery information available on the Internet, Matt and Mike created GrubHub to organize and simplify all the restaurant data available to consumers. Visitors to the site or mobile users simply enter their address to see every local restaurant that delivers to them. Users can view menus and coupons, read user reviews and order for free online, by phone or through the GrubHub iPhone and Android apps. GrubHub’s base of 13,000 restaurants represents one of the largest independent restaurant networks in the U.S. The company expects to send more than $70 million in food orders to its businesses by the end of this year.

“I’m very excited to be a part of GrubHub,” said Chuck Templeton. “I see striking similarities between OpenTable and GrubHub including their growth strategies and market dynamics.”

There are more than 300,000 delivery and takeout restaurants in the country and on average, GrubHub users order out at least ten times a month. With more people now searching for restaurants and ordering food on the Internet and through their smart devices, the opportunity for continued growth is substantial for GrubHub.

“Independent restaurateurs know how to make great food, but when it comes to marketing their businesses online, they need additional support,” said Matt Maloney, GrubHub co-founder and CEO. “Despite the slowdown in the economy, GrubHub’s online solutions and mobile apps continue to drive significant business to local restaurants. This new round of funding is going to allow us to bring our technology to even more restaurants in even more cities.”

Benchmark Capital has a strong record of investing in market leaders, especially in the online space.

“Bill Gurley and his team bring proven investment experience working with incredibly successful companies,”said Maloney. “Benchmark’s deep knowledge of consumer facing Internet companies makes them a great partner for us.”

For further information: Media contact: press@GrubHub.com

GrubHub.com secures $2 million in Series B funding

Company plans to build the largest online network of restaurants that offer off premises dining options and create innovative products to improve delivery service

GrubHub.com, a leading online service for ordering restaurant takeout and delivery meals, announced today that it has secured a Series B round of financing for $2 million. The deal was co-led by Origin Ventures and Leo Capital, with earlier investor Amicus Capital participating.

The Series B funding will enable the company to build the largest online network of restaurants that deliver; and create new innovative products to enhance user experience and improve the quality of delivery service. GrubHub.com is currently operating in Chicago, IL., New York City, NY, San Francisco, CA, Boston, MA, and recently launched in Philadelphia, PA.

 “Over the last year, GrubHub.com has successfully accelerated its sales growth in the top metro delivery markets.” said Randy Rissman, Leo Capital managing partner. “This investment will allow GrubHub.com to continue to build the technology and business team required to expand its customer reach geographically and product wise.”

GrubHub.com, which first launched in Chicago in 2004, secured Series A funding in 2007 through Amicus Capital, Origin Ventures and several angel investors, allowing the company to rapidly expand into the top three delivery markets – New York City, San Francisco and Boston.  The company has quickly outpaced its initial goals. Last year, GrubHub.com placed over $20 million in restaurant delivery orders and is currently partnered with over half of the delivery restaurants in all its existing markets.

“We’ve seen healthy growth over the last year even though the economy has been steadily going in the opposite direction,” said Matt Maloney, GrubHub.com co-founder and CEO. “With funding dollars drying up in the current economic climate, this recent round of financing is a show of confidence from the investment community. We plan to continue GrubHub.com’s rapid geographic expansion and launching innovative tools to make off premises dining easier and faster over the next year.”

GrubHub.com has been a pioneer in online ordering, developing the first automated phone confirmation system for online restaurant delivery orders and the first iPhone application for ordering food. The company was also at the forefront of organizing and listing all restaurant delivery information in each market it services. With the new funding, GrubHub.com will continue to enhance its product development and technology with additional smart phone applications and new interactive consumer-facing content on the site.

GrubHub.com is currently looking to add rock star employees to its growing team. For more information, please visit www.grubhub.com/careers/.

About GrubHub.com

GrubHub.com came into existence in 2004. Matt Maloney and Mike Evans, two Chicago software developers, frustrated by the lack of restaurant delivery and takeout information available on the Internet, built a comprehensive Web site for users to find out who delivered to their exact addresses.

For more information or to discover who delivers anywhere in Chicago, San Francisco, Boston, New York and Philadelphia, visit http://www.grubhub.com.

About Leo Capital 

Leo Capital Holdings, LLC is a privately funded venture investor based in Northbrook, IL., making investments in early stage consumer-oriented companies. The firm works with companies that target large markets and makes investments across the United States.

About Origin Ventures

Origin Ventures is a venture capital firm based in Northbrook, IL., investing in early-stage companies. The firm invests capital and leverages its principal’s entrepreneurial, marketing and management expertise to help facilitate the growth of early-stage companies.

About Amicus Capital

Amicus Capital is a seed stage information technology investment fund, based in San Francisco, CA. The firm invests in entrepreneurs who are developing innovative information technology solutions to problems that affect large numbers of businesses or consumers.

Grubhub.com Wins the University of Chicago New Venture Challenge

Local Website that Shows Users “Who Delivers” Wins $25,000 and Continues to Gain National Recognition at Prestigious Competition

CHICAGO A national panel of venture capitalists awarded GrubHub.com, a website founded in Chicago by two friends, first place out of over 60 entries in the 10th Annual Edward L. Kaplan New Venture Challenge at the University of Chicago Graduate School of Business. Winners were selected based upon the uniqueness of product and services, fulfilling an unmet need, exceeding customer expectations and the likelihood of market success.

GrubHub.com is the only way for people to find all of the restaurants that deliver to them. Users simply enter their address into the website and GrubHub.com returns the menus, coupons, and delivery information for all of the restaurants that deliver to that location. GrubHub.com is totally free for users because it is in the business of lead generation for delivery restaurants.

“What an ingenious idea,” said Michael Alter CEO of SurePayroll, Inc, #53 of the Inc. 500 fastest growing companies. “Its so simple and absolutely useful, everyone should use GrubHub.com!”

Today GrubHub.com serves over 75,000 users per month and is growing by 30% every month. Last year, Chicagoans placed over 2 million dollars in orders for delivery through GrubHub.com. Users can call the restaurants to place a delivery order or use GrubHub.com’s online ordering system.

Founded by Mike Evans and Matt Maloney, both of whom have masters degrees in computer science and used to work at Apartments.com, GrubHub.com has been a labor of love until now. “We have called every restaurant in the city of Chicago to get our data,” said Mike Evans, “We maxed out our cell phone minutes, our credit cards, and not to mention our wives’ patience, but this recognition is absolutely worth the sacrifice.”

GrubHub.com is using the prize money to fund a national expansion to San Francisco, Seattle, New York City, Boston, and Washington D.C..

Widely held as the premier business school for budding entrepreneurs, the University of Chicago Graduate School of Business created The New Venture Challenge in 1996 as a way to promote entrepreneurship. Now in its 10th year, the competition has launched 30 new companies that have attracted more than $100 million in funding. The Illinois Department of Commerce and Economic Opportunity also supported the competition by donating a portion of the prize money.

Contestants were judged based on their prospects for success, quality of their business plan, and a final presentation to a panel of 19 distinguished judges and over 200 spectators at the University of Chicago on May 25, 2006.

About the Edward L. Kaplan New Venture Challenge

Founded in 1996, the New Venture Challenge is designed to encourage students to turn their entrepreneurial ideas into reality. This year, cash prizes of $50,000 were be awarded to student teams of entrepreneurs who submitted business plans showing significant promise and business potential.

The road to the finals began with 64 student groups, each with a business plan. During the spring quarter, the field was narrowed to 31. Only nine teams made the finals. Student teams had 15 minutes to pitch their plans to a panel of 19 judges made up of top venture capitalists and entrepreneurs from all over the U.S.

About the Polsky Center for Entrepreneurship

The Michael P. Polsky Center for Entrepreneurship, located at the University of Chicago Graduate School of Business, supports entrepreneurial development through its cutting-edge curriculum, faculty research, experiential learning, and community outreach programs.

About the University of Chicago Graduate School of Business

The University of Chicago Graduate School of Business is one of the oldest and largest business schools in the world. It offers full-time and part-time MBA programs, a PhD program, and open enrollment executive education.

About GrubHub.com

Who Delivers? GrubHub.com seeks to answer this question with a unique restaurant delivery search. Users simply enter their location through an intuitive online interface and GrubHub.com displays all of the menus, coupons, and delivery information for every restaurant that delivers to that address. Using GrubHub.com is free and orders may be placed over the phone or through GrubHub.com’s online ordering system at no charge.

GrubHub.com has over 1300 delivery restaurants listed in Chicago and also covers Milwaukee, San Francisco, and New York City. GrubHub.com has been featured on NPR, Fox Morning News, and various online publications including the Chicagoist, the Sfist, Gapers Block, and Daily Candy.