Crain’s Chicago Business – Grubhub is now the top performer among local publicly traded companies over the past 12 months as it expands its restaurant delivery business and beats financial forecasts.
It helps that Grubhub is beating Wall Street’s forecasts, showing record growth in the second quarter, for instance, in what traditionally are its slowest months of the year. To underscore the point, the company raised its financial targets for the year.
A big driver is delivery. Maloney was happy to handle online orders, but he resisted getting into the delivery business, a low-margin hassle. That changed three years ago, when Grubhub acquired several early players and has built out its own network.
Grubhub also got deeper into restaurant technology, another messy business, integrating its mobile app directly into point-of-sale systems. It’s a key reason for the LevelUp acquisition. “If we’re going to grow the business, we have to go to where our customers are and relieve them of their burdens,” Maloney says. “I’m able to do delivery at scale more efficiently than 80,000 individual restaurants can. The same is true of POS integration.”
One risk is technology. “Grubhub has grown in terms of locations and geography. With that growth have come these land mines of complexity, integration and execution,” says Scott Langdoc, a San Francisco-based senior vice president of BRP Consulting, which advises restaurants on strategy and technology.
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