GrubHub Now Serving Market Expansion with $11M in Funding
Now that GrubHub – the searching engine for delivering restaurant meals, has raised a $11 million venture capital, it is looking for expanding the availability of the services around the country.
Benchmark Capital was the leading investor in this round (the third session for GrubHub in six years) and the financial support that they offer is intended to double the network in which GrubHub is performing, to the 13 locations in which is now currently available. GrubHub has only recently launched its iPhone and Android apps, embarking on a powerful mobile strategy that aligns well with its existing service.
Bill Gurley, a venture capitalist with Benchmark Capital, is reportedly foreseeing a sustainable development of GrubHub and the restaurant industry itself in the next years – recently OpenTable targeted the market by acquiring the UK online restaurant reservation website toptable.com.
It is expected that by the year 2011, the orders placed via GrubHub will double, reaching a $150 million peak. This is going to be because of their expansion plan, which considers the availability of the online ordering not only in big cities such as New York, San Francisco or Los Angeles but also other regions and suburban areas.
Gurley is optimistic about the improvement in figures of the restaurant ordering on internet “All of these industries have gone from zero percent to 100 percent.” This interest of the consumer for this type of service is due to the simplified process of ordering that doesn’t imply anymore making a call or looking in the restaurant’s menu.
The accessibility, easiness and free-of-charge service of using GrubHub are the ingredients that chief executive Matt Maloney is using in the business “Restaurants are doing well cooking food but they need some help in the technology space.” Not long ago, GrubHub also launched the mobile apps, making the service more competitive.
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