As those who follow the “Great Food Bubble” remember, GrubHub and Seamless merged roughly six months ago, with GrubHub CEO Matt Maloney taking the helm of the new operation. Together, the companies expect to see revenue of $200 million this year, serving more than 12,000 restaurants in 40 cities.
Compared to other recent tech IPOs — like Twitter — GrubHub Seamless has a very tenuous hold on its market. The ‘food delivery’ industry has splintered into companies servicing enterprise (Chewse, ZeroCater), step-by-step recipes (Plated), and even firms claiming to deliver “anything” within an hour (howdy, PostMates). None of this means that a GrubHub Seamless IPO is a bad idea, necessarily — only that investors should be extra diligent they are not about to step into a next-gen Pets.com fiasco.
According to The Deal, GrubHub hired Citigroup in 2012 to begin working out the kinks for a potential IPO — a plan that was pushed under the table after the merger earlier this year. No information is available as to whether Citigroup will remain a lead underwriter of the GrubHub Seamless IPO.