Almost two years after purchasing food delivery site Eat24, Yelp has agreed to sell it to GrubHub for $287.5 million in cash. As part of the agreement, GrubHub will acquire Yelp’s Eat24 business and Yelp will integrate online ordering from all Grubhub restaurants onto its extensive local goods and services platform.
“Bringing GrubHub onto the Yelp Platform through this long-term partnership will be a win for everyone. Consumers get a high-quality end-to-end experience with a wider selection of restaurants and better delivery options. Restaurant partners receive increased online exposure and the opportunity for increased order volume, as well as expanded delivery support. Yelp and GrubHub benefit from greater scale and sharper operating focus,” said Jeremy Stoppelman, Yelp’s co-founder and chief executive officer. “We expect Grubhub’s acquisition of Eat24 to create significant value for our consumers, restaurant partners, and stockholders. The Eat24 team deserves credit for the transformational impact they’ve had as part of Yelp, and I’m pleased that we will continue to pursue this huge market opportunity in partnership with GrubHub.”
Together, Grubhub and Eat24 will form the largest network of restaurants offering online and mobile food ordering in the United States. Diners will have the ability to discover and order from approximately 75,000 great local restaurants through either Grubhub’s or Yelp’s easy-to-use interface and take advantage of the industry’s lowest diner fees.
[Via The Verge]