The Big Flaw in Grubhub’s Business Model Just Became Wildly Obvious

Restaurant delivery is only getting more and more popular among customers, which ought to be great news for Grubhub (NYSE:GRUB). But the service provider’s third-quarter numbers were plain awful, and its guidance was ugly, too. In this segment of the Oct. 29 MarketFoolery podcast, host Chris Hill and Motley Fool Asset Management’s Bill Barker dig into precisely where it’s […]

Postmates CEO: Rival GrubHub’s debacle is not a warning sign on overall food delivery business

GrubHub’s terrible earnings and more than 40% stock plunge last week is not indicative of the potential of the broader food delivery business, says Postmates co-founder Bastian Lehmann. Lehmann says the GrubHub catastrophe is a GrubHub problem. Taking a veiled swiped at his rival, Lehmann says millennials who like Postmates may be turned off by companies that cater […]

Uber’s Giant Food-Delivery Losses Might Take a While to Eliminate

A week after GrubHub  (GRUB) fell more than 40% post-earnings, Uber (UBER) provided fresh evidence of how tough of a business online food delivery is right now.Uber is down close to 9% following its Q3 report and earnings call, and has made new post-IPO lows along the way. And while there’s a concern or two that one […]

Grubhub in Freefall – In a Free For All market

Facing its sharpest one day decline in its five-year history as a public company, and ranking as one of the steepest falling stocks of the week, shares of Grubhub (NYSE:GRUB), the once-dominant food delivery operator, tanked more than 40% after a disappointing earnings announcement. Back in 2014, Grubhub’s IPO saw their shares trading at $40 on opening […]

Trouble cooking? GrubHub, Uber Eats get pushback from restaurants on fees

NEW YORK (Reuters) – In a letter to investors before its share price plunged last week, online food delivery service GrubHub Inc (GRUB.N) cited its profitable ties with small and medium-sized restaurants, saying they generate 80% of the orders on its platform. “This is a highly lucrative relationship for both parties,” the letter said. But […]

GrubHub, Uber Eats Face Pushback from Restaurants on Service Fees

Food delivery services including GrubHub and Uber Eats are facing pushback from restaurants against the firm’s service fees. Reuters reports that a growing number of mid-sized and small food chains are pushing back against what they see as an unfair distribution of profits between them and food delivery services such as GrubHub and Uber Eats. GrubHub stated […]

Grubhub: Business Line Dysmorphia

Summary GrubHub continues to have difficulty maintaining profitability due to the high cost of delivery, which is becoming an increasingly important part of their business. The decline in GrubHub’s growth rate is not surprising given that most attractive cities and consumer segments are likely already near saturation. Competition remains a concern given data that indicates […]

Good Analysis of GrubHub and Delivery

Famous short-seller Jim Chanos’s Kynikos Capital Partners recorded the most profitable month ever in October, following large bearish bets against Grubhub and Pacific Gas and Electric (PG&E).  The bears are back, well maybe just Chanos at the moment, as he posted returns of 5.3% in October and year-to-date gains of 20.4%, according to investors who […]

Grubhub – The End Begins

Mediocre Q3 19 results and dreadful guidance. Grubhub clearly demonstrates a lack of barriers. Grubhub looks like it’s entering a vicious downward cycle. This will end in an acquisition at a lower price than today. Grubhub (GRUB) reported reasonable Q3 2019 results compared to already lowered expectations but took expectations even further down in a […]