Grubhub, an online food ordering company, has bought mobile payment platform LevelUp, for $390m in aim to provide restaurants and diners with a comprehensive solution from payment to delivery.
LevelUp founder and CEO, Seth Priebatsch, said: "For the last seven years, the LevelUp team has worked to provide our restaurant partners with a complete solution to engage customers in this rapidly evolving digital landscape.
"By becoming a part of Grubhub, we take our biggest and most exciting step in achieving that mission. Together, we will provide restaurants with everything they need to grow profitably as more and more diners opt for the convenience, transparency and control of ordering online."
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According to Grubhub's 2Q18 earnings release, the app saw a 70% increase of active diners at 15.6 million in comparison to 2017's second quarter release of 9.2 million. Grubhub stated that the acquisition would enhance its existing POS system while providing restaurants with CRM and analytical tools to attract more diners to the app.
Grubhub, a Chicago-based food ordering app, was founded in 2004 by two lawyers, Matt Maloney and Mike Evans. The app currently works with more than 85,000 takeout restaurants in the US and London, and has reported $240m in revenue in 2Q18, a 51% increase from $159m from their 2Q17 release.