Startup Food Chain

After $2.67B GrubHub IPO, VCs Are Hungry For Food Delivery Apps

(photo via Lucius Kwok))

Since GrubHub Seamless went public with a valuation of $2.67 billion, venture capitalists are racing to find the next hit food delivery app for their portfolios.

According to the report on the CB Insights blog, investments in food tech in the first quarter of 2014 (Q1) were the highest they’ve been in five years. Over $200 million went to food and grocery apps during those three months, which was the biggest VC investing boom in over a decade.

Most of these are small, local apps that focus on a particular set of stores and services, whereas GrubHub and Seamless are nationwide giants with a combined 25 years under their belts. The two companies merged last year, and served over three million customers nationwide in 2013 alone. Read More

Food Fight

Following Merger, GrubHub and Seamless Hit with Temporary Antitrust Rules

Attorney General Eric Schneiderman (Photo: oag.state.ny.us)

Two of the city’s biggest online food delivery companies merged in May — but New York Attorney General Eric Schneiderman is hoping to keep the online food ordering game competitive with a few new rules (well, for now).

Mr. Schneiderman today announced a settlement with GrubHub and Seamless. The agreement states that the companies will no longer be allowed to form exclusive agreements with certain vendors, a release from Mr. Schneiderman’s office states, and they must sever any existing ties within the next 45 days. Read More

Food Fight

Never Leave Your Apartment Again: Seamless and GrubHub Are Merging

seamless

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. Read More

Stormy Weather

Vine, Seamless, and ‘Say Yes to the Dress’: An Internet Preparedness Kit for Snowstorm Nemo

Via Smile, It Looks Good on You

You’d think after Hurricane Sandy, nothing short of the actual apocalypse could rattle New Yorkers. And yet, if Twitter is any indication, it seems there’s a fair bit of panicky flailing happening around the city right now. Well, buck up, because we’ve assembled a complete Internet preparedness kit featuring everything you might possibly need.

Maybe also buy some batteries, though?  Read More

startup rundown

Startup News: Etsy Goes Big for Christmas and Bloomberg Giving Away Big Prize to Makers

Mr. Dickerson (Photo: Twitter.com)

Lots Of Tiny Wicker Puppets Sold Etsy CEO Chad Dickerson took to the company’s blog to address his craft-obsessed minons and report big new numbers. Etsy recently hit 20 million members across over 200 countries. In the first week of November, they passed the $700 million sales mark and their direct checkout system has now processed over $100 million in transactions. By the end of the year, Etsy projects that it will have sold over 100 million items in the company’s history.

The company is also going all out for the holiday season and expects to have its best month yet. It’s running a multi-million-dollar online advertising campaign and opening a Etsy Holiday Shop in SoHo from November 29th through December 8th. SoHo though? Isn’t Greenpoint or Williamsburg more on target with the Etsy brand?

Chu Bets Against Zynga Betable has already announced partnerships with big game companies and is right on the path to become the Spotify of online gambling and pass its closest rival, Zynga. Ya-Bing Chu, a former VP and GM of Zynga’s mobile division, has now joined Betable as the company’s new Chief Product Officer. At Zynga, he was responsible for operating Words with Friends and Scramble with Friends. Mr. Chu explains the move in an essay on Betable’s blog, where he says, “I realized that Betable was the only frictionless way to enter the real money market, which is revolutionary.” Read More