GrubHub files for $100M IPO
GrubHub has grown as diners develop a preference to place food orders online, rather than by phone, and increasingly by tapping out orders on their mobile phones.
GrubHub said Friday it has officially filed for an initial public offering (IPO) of up to $100 million and that co-founder Mike Evans plans to leave the company by the end of June.
The online food-ordering company, which merged with rival Seamless in August and changed its name to GrubHub Seamless, will now be known as just GrubHub.
Evans, 36, currently serves as GrubHub’s chief operating officer and plans to leave by June 30 to pursue other opportunities.
Evans issued an upbeat statement about future prospects but neither he nor other company executives were made available for interviews Friday.
Revenue soared last year, helped in large part by the combination with Seamless, but its profit declined substantially as costs have swelled, according to its offer filing with the Securities and Exchange Commission.
GrubHub has grown as diners develop a preference to place food orders online, rather than by phone, and increasingly by tapping out orders on their cellphones.
Orders placed from mobile devices jumped to 43 percent of orders during the last quarter of 2013, up from about 20 percent two years earlier, GrubHub said.
GrubHub sees a $67 billion market for takeout orders from independent restaurants, its primary target.
Americans spent $204 billion at independent restaurants in 2012, according to Euromonitor data provided by GrubHub.
The company reported 2013 net income declined almost 15 percent to $6.75 million, despite a 67 percent increase in sales.
GrubHub’s stock is expected to be listed on the New York Stock Exchange, trading under the symbol “GRUB.”
GrubHub was founded in Chicago in 2004 and Seamless was founded in 1999 in New York.
The companies processed a combined 135,000 in 2013 and had about $1.3 billion in gross food sales together last year.