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 […]

Uber Eats’ Hungry New Strategy: Dominate or Exit

Uber unveiled an aggressive strategy for its food delivery business: Become one of the top two players in cities where it operates or retreat from those areas within the next year and a half. During the third quarter, Uber Eats missed Wall Street’s expectations for its gross bookings, or the money collected on the service […]

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 […]

Grubhub: [Trust Us,] We’re Going to Make a lot of $$ Next Year

Grubhub CEO Matt Maloney and President Adam DeWitt were clear the company’s third-quarter financial results were a disappointment—putting it lightly—but the execs of the one-time top U.S. delivery brand kept returning to the mantra that nobody should focus too much on the latest results, because “we’re going to make a lot of money next year.” […]

Grubhub revisits non-partnered listings as rivals erode its market share

Once the king of third-party delivery, Grubhub’s throne is crumbling under market pressure from heavyweight rivals. Competitors have scaled quickly, entering new territories and adding a steady flow of non-partnered restaurants, which have lured diners away from the platform, executives said in a letter to investors.  DoorDash has since taken the most market share followed by Uber […]

Grubhub’s New Strategy Is to Offer Deliveries Without Restaurants’ Permission

Food delivery web site and application Grubhub been getting on the nerves of the owner of the restaurant for a while. In a class action lawsuit filed in January, some restaurants alleges that the site quietly restaurants charging for phone calls orders, because the calls are placed through a proxy Grubhub telephone number set. In […]