Delivery wars: GrubHub grabs more market share vs. Uber, Amazon

Courtesy of GrubHub

GrubHub's biggest news on Thursday wasn't its quarterly earnings. Rather, it was its acquisition of food ordering service Eat24 from Yelp for $287.5 million, along with a five-year deal that will let GrubHub receive food orders through Yelp's listings.

  • In it for GrubHub: Getting access to Yelp users — and their hungry eyeballs — will undoubtedly mean more orders for GrubHub, as co-founder and CEO Matt Maloney told Axios.
  • The numbers: This is a strong return for Yelp, which paid just $134 million for Eat24 in early 2015. That's probably why its stock soared on the news and GrubHub's slumped. But, in the long-run, the deal should give GrubHub some added buffer against burgeoning rivals Amazon and Uber.
  • The big picture, per Quartz's Alison Griswold: "Grubhub's delivery dominance in the U.S. is rivaled only by Domino's, the ubiquitous pizza chain. As of last summer, Grubhub commanded a 23% slice of the digital ordering and delivery market compared to Domino's 24%, according to research from Morgan Stanley."