Food Fight

Never Leave Your Apartment Again: Seamless and GrubHub Are Merging

Your move, Delivery.com.
New name, soon.

New name, soon.

After rumors swirled the past few days that food delivery companies GrubHub and Seamless were in talks to merge, the news is now official. Bloomberg reports that the companies are combining in an effort to out-deliver their competitors in the fast-growing online ordering sector.

Matt Maloney, CEO of Chicago-based GrubHub, will lead the merged entity while New York-based Seamless CEO Jonathan Zabusky will be its president. Financial details have not yet been released but neither company is paying to acquire the other. The company will be rebranded, although a new name hasn’t been selected.

The combined company will beef up customers’ offerings to more than 20,000 restaurants in 500 American cities, a press release states. Between the two companies, nearly $875 million were spent by cheesecake-at-2am-craving consumers, resulting in $100 million in revenue. The merger will help the companies further epand into that lucrative section of mobile food delivery. Nearly 30 percent of orders on GrubHub are conducted through mobile, while Seamless pulls in 40 percent of orders through its app.

Mr. Maloney told Bloomberg the company will continue to grow:

“This has nothing to do with cost savings; it has everything to do with increasing growth,” Mr. Maloney said. “We’re totally focused on the top line and how we continue to drive more orders for our restaurants.”

The deal will have to be approved by government regulators. In the mean time, can we get a Seamless discount code in celebration?

Follow Jordan Valinsky on Twitter or via RSS. jvalinsky@observer.com