Case Study

Grubhub is the leading online and mobile food ordering platform in the U.S.

Prior to Spectrum’s investment, Seamless was the leading provider of online food ordering services in the New York City area and a division within Aramark. Spectrum led the carve-out of the company from Aramark to create a distinct, standalone company.

Spectrum leveraged its deep understanding of online marketplace businesses to build an organization that could expand the company’s geographic footprint, accelerate customer acquisition, and extend from desktop to mobile. Spectrum was instrumental in identifying several acquisitions and leading the merger with Grubhub in which Seamless shareholders received a majority stake in the combined company. The company subsequently completed a public offering on the NYSE.

Today, the company processes over 200,000 orders each day and $2.5 billion orders annually, while it continues to grow its network of diners and restaurants.

Senior Management and Board Recruitment

Spectrum led the recruitment of Brian McAndrews as a board member and now Chair of GrubHub, Sanjay Tiwary as CIO, Maggie Drucker as General Counsel, and Nick Worswick as GM of Corporate. The organization has grown from 185 employees at the time of the Aramark spin-out to over 1,000 today.

M&A

Spectrum worked closely with management on diligence and negotiations for the merger with GrubHub. In addition, Spectrum played an active role in the company’s acquisitions of MenuPages, DiningIn and Restaurants on the Run.

Network Effects

The online and mobile food ordering platform now serves 35,000 restaurants and over 5 million active diners in 900 cities.

Mobile Growth

GrubHub launched its first mobile application following the spin-out. Today, mobile is over 50% of total daily orders.

Public Offering

The company went public in April 2014 (NYSE: GRUB) with a market cap of over $2.5 billion.

News

Grubhub Launches Economic Relief Effort for Independent Restaurants and Delivery Partners

Grubhub Suspends Fees from Independent Restaurants and Sets up Charitable Fund for Impacted Drivers and Restaurants

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Grubhub Announces Update to Board of Directors

Following Spectrum’s exit in Grubhub, Ben Spero resigned from the Board and Compensation Committee. Ben served as a director of Seamless and then Grubhub following the merger for a combined 5+ years.

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Why Grubhub is Outlasting Food Delivery Startups

Strong network effects, ease of use and commitment to quality service – all aspects that have made Grubhub a dominant market leader over the past 10+ years despite an evolving competitive landscape.

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Grubhub Reports Second Quarter 2016 Results

Grubhub generated 37% revenue growth and 32% adj. EBITDA growth in the quarter ending June 30, 2016. The company generated a record number of orders in Q2 and the best order growth in a year.

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Perspectives