GrubHub Inc (NYSE:GRUB) is teaming up with Yelp Inc (NYSE:YELP) to expand its food delivery service.
The deal between the two companies now has GrubHub showing up on Yelp’s platform. This will allow Yelp users to easily make orders from restaurants that don’t typically offer delivery services.
According to GrubHub, the deal will let it take in “thousands of new diners and millions of orders” from Yelp users. The deal will benefit both companies as GRUB will be able to reach more potential customers through the review site. It also strengthens Yelp’s restaurant category.
“We’re thrilled to complete our integration with Yelp, which enhances the online ordering experience for diners and will drive more orders to our restaurants from Yelp’s tens of millions of monthly users,” Matt Maloney, founder and CEO of GrubHub, said in a statement.
The deal will have GrubHub delivering food to some 80,000 restaurants on Yelp’s platform. This will be more than double the number of restaurants that it currently delivers to. Yelp will also be getting a cut of the delivery cost that GRUB chargers customers.
The integration of GrubHub on Yelp completes the former’s acquisition of the latter’s Eat24 directory that started last year. It will also potentially give GRUB the chance to decrease ordering costs due to drivers handling more orders at once. Maloney believe it may reach a point that the service can offer free delivery, Engadget notes.
GRUB stock was down 2% and YELP stock was down 1% as of noon Monday.
As of this writing, William White did not hold a position in any of the aforementioned securities.
