Grubhub cofounder Matt Maloney has grown the company he started in 2004 into a leading food ordering and delivery service that continues to grow — and fight off new competitors.
In 2006, Maloney and cofounder Mike Evans won the New Venture Challenge at the University of Chicago’s Booth School of Business. Grubhub went on to merge with New York-based rival Seamless to boost its East Coast presence and filed for an IPO in 2014.
Priced at $26 per share, the company was valued at $2.04 billion. The IPO was a major milestone for the company and for Chicago’s tech community as a whole.
The company remains Chicago-based with Maloney at the helm and now operates in more than 1,100 U.S. cities and London, helping customers order from about 55,000 restaurants. Its delivery service is now available in 70 markets and contracts about 10,000 drivers. Although business grew in 2016, the company faces increasing pressure from the food delivery services of other tech giants Amazon and Uber.
Grubhub announced in August 2017 that it would buy rival food-delivery platform Eat24 from Yelp for $287.5 million. Eat24 has 35,000 restaurants on its platform, while Grubhub has more than 55,000. Accounting for overlap, the purchase would bring Grubhub’s total number of restaurants to about 75,000. The same week, Chicago-based Groupon announced that Grubhub would also power its food-ordering business.
“Separately, they both decided that they would trust Grubhub with the support of their customers,” Maloney said. “Separately we were vetted, separately, they decided that we could do the best. I mean, it’s a competitive marketplace. There’s a lot of other places out there. They could have gone with Amazon, and they chose to go with us.”
Maloney won the 2012 Moxie Award for CEO of the Year. He is co-chair of the web and mobile committee of Mayor Rahm Emanuel’s innovation and technology council, ChicagoNext, and an advisory board member for the Polsky Center for Entrepreneurship and Innovation at the University of Chicago. He earned his bachelor’s in psychology from Michigan State University and his MBA and master’s in computer science from the University of Chicago.
Maloney was named to the board of the Chicagoland Entrepreneurial Center, which runs 1871, in early 2015.