Grub­hub plans to ac­quire Eat24

Los Angeles Times - - BUSINESS BEAT - By Tracey Lien tracey.lien@la­ The As­so­ci­ated Press con­trib­uted to this re­port.

SAN FRANCISCO — Grub­hub Inc. plans to gob­ble up an­other on­line food-or­der­ing ri­val. This time it’s Yelp Inc.’s Eat24.

Grub­hub of Chicago said Thurs­day that it will pay Yelp $287.5 mil­lion in cash for Eat24. That’s more than dou­ble what Yelp, of San Francisco, paid for Eat24 two years ago. The two com­pa­nies also announced a five-year deal that will en­able read­ers of Yelp’s re­views to order food from restau­rants that use Grub­hub. Grub­hub plans to keep alive the Eat24 brand. Grub­hub Chief Ex­ec­u­tive Matt Maloney said in a state­ment that the two com­pa­nies had “com­ple­men­tary goals and strengths,” and the deal, if ap­proved by reg­u­la­tors, will be a boon to both.

As part of the deal, Eat24, which has a Yelp-con­nected on­line or­der­ing plat­form, will have ac­cess to Grub­hub’s vast net­work of de­liv­ery driv­ers (un­til now, restau­rants us­ing Eat24 have had to de­liver food them­selves).

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