For a long time, East24 and GrubHub were the only prominent food ordering services available. Two years ago, Eat24 purchased Yelp with hopes their database and Yelp’s built-in member base would increase their foothold in the market. GrubHub increased their foothold by purchasing Seamless, AllMenus and MenuPages. Now, they have purchased Eat24.
The Verge is reporting that GrubHub is purchasing Eat24 for $287.5 million, which is a little more than double the amount that the Eat24 paid for Yelp. The plan is that Eat24 will integrate GrubHub into its site and apps for at least five years.
Eventually Eat24 will be no more but GrubHub will continue to use Yelp as a useful directory for restaurant information. The only issue for customers is the lack of competition in this ever-shrinking market. With GrubHub gaining a bigger marketshare, it will prove to be difficult for start-ups to make a move without GrubHub using its clout to stop them.