Nov. 14, 2010
Could online ordering be as big as Facebook for the restaurant world? Possibly, now that online ordering outlet GrubHub has secured another round of million-dollar funding by a famous investment group.
GrubHub, a web and mobile service that organizes restaurant data for consumers and simplifies online ordering for delivery and takeout, has closed $11 million in Series C funding led by Benchmark Capital. Benchmark Capital is the investment group behind well-known Internet consumer brands such as OpenTable, Yelp, Zillow, Twitter and eBay. The Series C funding will allow GrubHub to heavily invest resources to further enhance its online and mobile solutions, and to expand marketing and sales efforts to support its growth. The company has raised $14.1 million to date.
There are more than 300,000 delivery and takeout restaurants in the country and on average, GrubHub users order out at least 10 times per month. With more people now searching for restaurants and ordering food on the Internet and through their smart devices, the opportunity for continued growth is substantial for GrubHub.
“Since its initial launch in 2004, GrubHub’s growth has been extraordinary,” said Bill Gurley, general partner of Benchmark Capital. “I am excited to work with two remarkable founders in Matt Maloney and Mike Evans, and I am also thrilled about the opportunity to partner again with OpenTable founder and GrubHub Board Chairman Chuck Templeton. The team has clearly demonstrated their ability to successfully launch new markets, scale their business, and build a brand that is highly valued by its customers.”
GrubHub’s base of 13,000 restaurants represents one of the largest independent restaurant networks in the U.S. The company expects to send more than $70 million in food orders to its businesses by the end of this year.