GrubHub, an online food ordering, and delivery service company has acquired Boston-based food ordering company LevelUp for an all-in cash deal. The firm said that their purchase of $390 will help Grubhub bring the likes of KFC, Taco Bell and Roti on their marketplace.
The firm has made the announcement while releasing their earnings report of the second quarter. Matt Maloney, one of the co-founder and CEO of the firm termed the acquisition as a product and strategic positioning acquisition. “LevelUp’s leading restaurant facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants,” said Maloney in a press release.
Matt Maloney along with Jason Finger and Mike Evans had founded GrubHub in 2011. LevelUp is a platform for digital ordering management. It also runs a loyalty program for customers like Pret a Manger, Potbelly, and Bareburger. LevelUp was started by Seth Priebatsch in 2008. It has raised funding of $108 million from the likes of Highland Capital, GV, Balderton Capital, Deutsche Telecom Strategic Investments, Continental Advisors, Transmedia Capital and U.S. Boston Capital.
By utilizing the loyalty program, Maloney said that Grubhub wants to increase customer interactions. “We want to help restaurants actively engage with their diners. This is a huge step in that direction," Maloney said.
Notably, the whole LevelUp team along with the CEO Seth Priebatsch will be reporting to Maloney who says that they still will be having a complete authority as GrubHub plans to make very little changes as they're doing things perfectly. “They’re doing something really well and we don’t want to screw that up. We want to make as little change as possible until we all understand how we’re better working together," said Maloney.
Through GrubHub, Priebatsch said that “For the last seven years, we have worked to provide restaurant clients with a complete solution to engage customers, and this agreement is the biggest and most exciting step in achieving that mission. After the close, the entire team will remain in Boston and our office will become Grubhub’s newest centre of technical excellence.”
Image Courtesy : Barron's