It's been a pretty exciting day in corporate mergers. Earlier on Monday, Yahoo completed its acquisition of Tumblr for $1.1 billion in cash, and now, we're bringing you news of a slightly more tasty variety.
GrubHub and Seamless, two of the country's largest online food delivery services have announced that they will combine into a single company. We don't know yet what the new service will be called, but a press release issued Monday reveals what the new corporate structure will look like.
Matt Maloney, the co-founder and CEO of GrubHub will take over as the combined entity's chief executive officer and current Seamless CEO Jonathan Zabusky will be the new company's president. The merger should deliver a number of benefits both to consumers as well as GrubHub and Seamless shareholders.
"By bringing together some of the industry's most celebrated products, including Seamless's award-winning iPad app and GrubHub's innovative Track Your Grub, we will be able to drive more value to all company stakeholders," said Jonathan Zabusky, CEO of Seamless in a press release. "Both companies also share a strong commitment to provide world-class service to restaurants, diners and corporate clients. This merger is an opportunity to glean the best from each platform and improve upon what we bring to all of our partners."
According to the press release, the combined GrubHub and Seamless service will encompass more than 500 U.S. cities and allow users to order from over 20,000 restaurants. The deal still needs regulatory approval.
While GrubHub and Seamless have competed against each other in several cities including New York and Chicago, the two platforms have taken different approaches since their inceptions in 2004 and 2005, respectively. GrubHub has focused primarily on consumer sales while Seamless has targeted corporate employees with expense accounts.