GrubHub has agreed to pay $287.5 million to acquire Eat24 from Yelp, which had purchased the provider of a food delivery service in a deal valued at $134 million in 2015. GrubHub and Yelp have also announced a five-year partnership designed to consolidate their respective assets, giving users of either platform in the US access to reviews of and deliveries from a catalog of some 75,000 restaurants.
The rationale behind the deal is clear, allowing both businesses to focus on their core competencies. For Yelp, that amounts to aggregating millions of reviews to drive ad revenue. GrubHub, on the other hand, takes control of a smaller rival in the food delivery space and gains access to some prime online real estate with Yelp’s platform. And as with any company in the food delivery space, both could benefit from greater scale and sharper operating focus in the wake of Amazon's $13.7 billion acquisition of Whole Foods.