Grubhub Starts to Leverage Last Year’s LevelUp Acquisition

As newer third-party delivery companies mature into viable businesses, each will need to differentiate itself in the marketplace. Grubhub’s $390 million acquisition of LevelUp offers restaurants a comprehensive way to manage its consumer-facing business and capitalize on opportunity.

Grubhub is at its core a delivery marketplace, focused on providing a platform for operators to reach diners mainly outside the four walls of a restaurant. LevelUp, which has continued to operate as a standalone business post-acquisition, is a technology company focused on implementing robust loyalty programs and creating restaurant-branded mobile apps to facilitate ordering ahead and pickup. Combine these capabilities, and restaurant businesses get a good look at what their customers want and what keeps them coming back.

…According to Priebatsch, a core tenet of the acquisition is to offer restaurants a streamlined view of what’s working for their customers across all channels, from branded apps and loyalty programs (powered by LevelUp) to a robust delivery program (powered by Grubhub.) “Any market that’s undergoing aggregation has always been sort of cooperative struggle and dance between marketplaces and brands themselves that want to own their audience,” he said.

At the time of its acquisition, LevelUp had strong integrations with most restaurant point of sale systems. Grubhub is also leveraging that technology to to remove some friction in the ordering and fulfillment process.

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