One of America’s oldest online ordering platforms will soon cease to exist as its own brand, affecting hordes of urban customers who have been using it for years. Seamlessly, the food delivery app most prominent in New York City will be absorbed by Grubhub later this year, parent company Just Eat Takeaway.com (JET) announced.
The Seamless app was founded in 2009 as a business ordering platform by two lawyers, but gained popularity after it was acquired by Grubhub in 2013. Restaurants, the merger created one of the largest online takeout companies in the country.
Currently, however, Grubhub and Seamless, along with Eat24, another Grubhub subsidiary, capture about 16% of the nation’s food delivery business, which left them behind competitors like Uber Eats and DoorDash last month. Their strongest presence is in urban areas such as New York, Chicago, Boston, Philadelphia, Houston and Los Angeles. And it’s likely to stay that way: The parent company announced that Grubhub’s strategy is shifting from national to local, with the company instead of trying to grow nationwide, focusing its efforts on its geographic strongholds.
“We strongly believe that the US cannot be seen as one market like the UK or Germany, but that each metropolitan area has its own characteristics,” said Jitse Groen, CEO of Just Eat Takeway.com during a recent earnings call. . “We will therefore refocus strategic efforts on Grubhub’s strongholds, focusing on expanding that stronger base, rather than targeting the entire country.”
More details about the transition, including its implications for users, will be revealed at JET’s October Investor Day.
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