GrubHub Is Spending Heavily To Maintain Market Share

Grubhub has been the industry leader in online food delivery, but going forward will have to spend heavily to maintain its lead over numerous upstart competitors.

Uber’s public market debut in 2019 will shed more light on its ambitions in the space with UberEats.

GrubHub’s largest partner, Yum Brands seems to have passed it over for integration into it’s second largest brand.

International growth is an inevitable necessity of any established U.S. technology company to justify P/E. This will be increasingly difficult with international copycat businesses.

…If GrubHub adds 884K users in Q4 ’18, and spends a total of $61.98M on Sales and Marketing, this would work out to an average of ~$70.11 per average user added. Which is roughly in-line with their average cost of user acquisition ($73.22). Failing to do so, and we can expect cost of user acquisitions to increase in the future.

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