Grubhub plans to acquire Eat24
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).