Technology

Grubhub acquires LevelUp for $390M

The delivery giant strategically adds the digital ordering and loyalty platform to its portfolio.
Grubhub

Grubhub announced that it has agreed to acquire LevelUp, the digital ordering and loyalty platform, for $390 million. 

Unlike some of its previous acquisitions, such as Eat24, the acquisition of LevelUp is a “product and strategic positioning acquisition,” Grubhub CEO and founder Matt Maloney told TechCrunch.

The deal will further drive Grubhub’s integration with restaurants, specifically with the point-of-sales systems of some of country’s largest restaurant chains. LevelUp currently serves about 200 regional and national concepts and processes about 100,000 orders per day through its white-label product. 

According to a release detailing the acquisition, LevelUp will get access to Grubhub's POS integration capability for its own restaurant partners, such as KFC, Taco Bell, Bareburger and Roti. The increased POS integrations will in turn allow Grubhub to handle more deliveries, said Maloney, as well as tap LevelUp’s strength in engaging with consumers to drive orders. “Together, we will provide restaurants with everything they need to grow profitably as more and more diners opt for the convenience, transparency and control of ordering online,” said Seth Priebatsch, LevelUp’s founder and CEO, when the deal was announced. 

Grubhub’s shares jumped 12% in the wake of the announcement, which was made during its second quarter earnings call Wednesday morning. 

Boston-based LevelUp launched in 2011 and has raised more than $100 million in total funding. Grubhub will retain the LevelUp team, with the tech company potentially continuing to function as its own brand under the Grubhub umbrella. “We want to make as little change as possible, until we all understand how we’re better working together,” said Maloney.

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