Skift Take
The deal, which just closed, provides some insight into both Grubhub and LevelUp’s businesses, but it says even more about the future of restaurant technology.
In late July, Grubhub CEO Matt Maloney announced Grubhub’s intent to acquire restaurant technology company LevelUp. On Thursday, Grubhub announced the deal had closed.
On the surface, the $390 million cash offer seems almost straightforward: large, public delivery company buys small but popular loyalty technology startup to increase its capabilities. “LevelUp's world-class technology and team will expedite Grubhub's integrations with the nation's top restaurant brands, provide more tools to help them attract new diners and position us to accelerate order growth on the Grubhub platform,” he said on the call.
When Skift Table talked to Michael Hagan, LevelUp’s chief strategy officer, in April, he explained what makes his company attractive to a larger organization like Grubhub. “We’re seeing success because we can say to a [restaurant] brand, you need to be thinking beyond the brand loyalists. You need to be thinking, how do I extend my menu and my ordering capability? And how do I push that into other places that have large audiences?” The company bills itself as a “growth engine for restaurants.” Beyond the quick-hit headlines, though, the
