Company to Focus on its Increasing Footprint and Mobile Development
CHICAGO, September 21, 2011 – GrubHub, a web and mobile service that connects diners to restaurants and simplifies online ordering for delivery and pick up, has raised $50 million in Series E funding to aggressively focus on its mobile development and acquire New York-based Dotmenu, the parent company of Campusfood and Allmenus. This Series E funding is led by Lightspeed Ventures with Mesirow Financial, Benchmark Capital, Greenspring Associates and DAG Ventures participating. Terms of the acquisition will not be disclosed.
“Since starting GrubHub with my partner Mike Evans in his apartment in 2004, we’ve sent over $200 million in delivery and pick up orders to independent restaurants across the country,” said Matt Maloney, GrubHub co-founder and CEO. “With our unwavering focus on providing the best service to diners and the most efficient technology to restaurant owners, we have grown to become the leader in the online ordering space. It is precisely for this reason that we are acquiring Dotmenu. Dotmenu has shown great expertise in servicing the college market, and by combining our extensive networks, we will become the foremost resource for diners and restaurants for their online ordering needs.”
The Series E and Dotmenu acquisition comes just six months after GrubHub raised $20 million in funding led by DAG Ventures. The funding rounds, coupled with the acquisition, strengthen GrubHub’s position as the category-defining leader in the industry.
Through the acquisition, GrubHub will have the largest restaurant listing in the country with 250,000 restaurant menus in over 50 major cities and countless college towns across the US. The two companies are projected to send over $225 million in combined order revenues to independent restaurants in 2011, and will continue together to achieve more aggressive growth in the years to come.
“GrubHub has a strong presence in the top US markets,” said Michael Saunders, Founder and President of Dotmenu. “This, combined with our network across more than 300 college campuses, allows us to build upon the strong relationship we have with our diners long after they graduate. The acquisition will enable us to make an immediate impact on our restaurants by sending more orders their way.”
GrubHub is free for diners who order and pay for their meals with cash, credit or PayPal™. Restaurants pay commissions for each online order they receive from GrubHub, and every order is supported by GrubHub’s 24/7 customer service. Restaurants that do not currently partner with GrubHub can still list their telephone numbers and menus for free.
Visitors to the site or mobile users enter their address to see every local restaurant that delivers to them. Diners can view menus and coupons, read reviews and order for free online, by phone or through the GrubHub iPhone and Android apps.
“By combining its ability to aggressively scale its footprint and mobile platforms with Dotmenu’s proven leadership in college markets across the country, GrubHub is the clear leader in the online ordering space,” said Bill Gurley, general partner of Benchmark Capital. “This move will make GrubHub a household name, such as Benchmark’s other on-line portfolio companies OpenTable, Yelp and Zillow.”
There are more than 300,000 delivery and takeout restaurants in the country. On average, GrubHub users order out more than 10 times a month and over 22 percent of GrubHub’s revenues come through mobile orders. Pickup and delivery are the fastest growing segments in the restaurant industry, which is one of the largest sectors of the U.S. economy. With more people searching for restaurants and ordering food on-line and through smartphones, the opportunity for continued growth is substantial.
“GrubHub and Dotmenu have a shared vision to make online and mobile food ordering easier and more efficient for diners and restaurants,” said Maloney. “The acquisition is a natural fit for us and we are extremely excited to be able to share our mobile capabilities with their expansive network of diners and restaurants. This is an amazing opportunity for both companies.”
GrubHub is a ventured-backed company founded in 2004 by Chicago-based software engineers Matt Maloney and Mike Evans. The website shows consumers all of the local restaurants that deliver to them and allows diners to order directly online, by phone or through the GrubHub iPhone and Android app. Both apps are free from their respective app markets, and it is also free for diners to order online at GrubHub.com.
The rapidly growing company currently services Chicago, New York, Los Angeles, San Francisco, Boston, Philadelphia, Washington D.C., San Diego, Orange County, Oakland, Seattle, Portland, Denver, Boulder, Miami, Dallas, Fort Worth, Houston, and Phoenix, with plans to add more cities in 2011.
For over a decade now, Dotmenu has been making it easier to stuff food into people’s faces. Thanks to the massive growth of our flagship websites Allmenus and Campusfood, Dotmenu has expanded its waistline to serve over 2 million registered users, nearly half of whom are college graduates. Having started out on just 18 campuses in 2000, Campusfood is now the number one late-night pizza and wings solution on 300 college campuses. Allmenus boasts over 250,000 menus, connecting famished Americans with their favorite restaurants in nearly every major city.