Seamless And GrubHub Have Announced A Merger. So, What Does It Mean?

Food delivery companies and former bitter rivals Seamless and GrubHub are merging, as reported yesterday by Chicago Tribune. In a statement, the companies said that customers from more than 500 cities will now be able to order from over 20,000 local restaurants as a result of pooled resources. According to the press release, the former competitors made a combined $100 million in revenue in 2012.

While few details were immediately available regarding the exact terms of the merger, the delivery giants assured all employees that they were in no danger of losing their jobs. Additionally, it was revealed that the two would combine technology – for example, GrubHub's "Track Your Grub" status updates will be available as part of a future iPad app. While no name was given for the new company, it was revealed that GrubHub co-founder Matt Maloney will serve as CEO and Seamless CEO Jonathan Zabusky will take on the role of President.

The deal will undoubtedly shift the balance of power in the delivery market. GrubHub is based in Chicago and received the majority of business from the Midwest, while Seamless' New York headquarters ensured their domination of the East Coast. Seamless made news in 2011 for buying Menupages, and is widely known for their corporate partnerships with over 4,000 companies nationwide. If only we had a nickel for each time one of my banking friends mentioned, proudly, that they are allotted $25 per day on Seamless...

The merger should be welcome news to both individuals and corporations, who can expect a "best of both worlds" from the soon-to-be launched joint venture, which will surely include more delivery merchants and improved technology.

The only unsettling news we can think of is that this could spell trouble for a third delivery system – and personal favorite –, which I became infatuated with years ago as a result of their (somewhat underwhelming) rewards program.

There was always something magical about daydreaming about receiving a big screen TV should I order enough MSG-laden Chinese food hungover on weekends. Then again, I'm still a few thousand pork buns away from that lofty and unwise goal, more likely to first fall dead of a heart attack. Bring on Seamless-GrubHub!

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