Seamless and GrubHub Merging to Form Mega Food-Delivering Company
May 20, 2013 01:53 PM EDT | By Staff Reporter
Financial terms were not disclosed and it's unclear what the combined company will be called. GrubHub CEO Matt Maloney will become CEO, while Seamless CEO Jonathan Zabusky will serve as president, the companies said in a joint statement.
GrubHub has been around since 2004 and has cornered the market in the Midwest while New Yorkers count on Seamless as their passive food delivery go-to.
Brian McAndrews, an independent director on the Seamless board, will serve as chairman. Both New York-based Seamless and Chicago-based GrubHub will have significant representation on the new company's board.
"We are excited to combine the strengths of these two dynamic organizations in an industry that is rapidly gaining traction," Maloney said in a statement. "We believe the merger will enhance the products we are able to offer both our diners and restaurants."
Last year, orders through the two privately held companies totaled about $875 million in gross food sales, resulting in combined revenue of more than $100 million. They also aggressively vied with each other for market share, boosting their ranks of sales representatives and heavily promoting themselves through social media and email offers and discounts.