Food Delivery Service GrubHub Secures $2 Million In Series B Funding
by Leena Rao on March 23, 2009

Food delivery search engine GrubHub.com has secured $2 million in Series B funding led by led by Origin Ventures and Leo Capital, with earlier investor Amicus Capital participating as well. Grubhub says that it will use the funding to build upon its existing online network of restaurants that deliver to metropolitan areas around the country and create new products to enhance user experience and improve the quality of delivery service. GrubHub.com’s service operates in in Chicago, New York City, San Francisco, Boston, MA, and recently rolled out in Philadelphia.

Launched in Chicago in 2004, GrubHub.com secured $1.1 million Series A funding in 2007 through Amicus Capital, Origin Ventures and several angel investors. This funding allows the company ton expand its operations to New York City, San Francisco and Boston.

Grubhub recently launched a useful iPhone app that allows users to easily browse through the menus of restaurants in their metropolitan area, add food items to a virtual cart, and see reviews of various restaurants. Competitors include MenuPix, FoodieBytes and CityMint.

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  • and that after we just swore to ourselves that we’ll cook more at home again ;)

  • Maybe im overlooking something but they dont have San Diego, CA in there. *sigh*

  • Sweet, ill keep my eyes pealed.

    Thank you!

  • There just seems to be to much competition. It would be nice to have that ability for small markets to

  • GrubHub is a nice idea, but it’s just an imitation Seamlessweb at the end of the day. The difference is that Seamlessweb is based in Manhattan and there are a metric ton of places you can order from, and many 24/7. No other city really offers anything similar.

    We have GrubHub here in San Francisco, but most of the orders have to be fairly large and there are only a small number of places that deliver if you live just a short distance away from downtown.

    • Seamless is a fine service as well, but they are not the same as GrubHub.com. We are the only site that shows all the restaurants that deliver. Seamless only shows restaurants that have contracts with them.

    • @Aaron Richard, I have to disagree as well.

      Attributable to the relatively small size of San Francisco, I was surprised by the number (20+) of restaurants that delivered to Potrero Hill, which is certainly not the heart of the city. But I’d think somewhere like San Diego or LA would be much harder to pull off.

  • I’ve been using GrubHub for 6 months now. I really really love the service. I’m surprised they received another investment but I’m glad they did because it’s one of those services I can’t live without.

    Really wanting an iPhone app of their system. Other than that, it works flawlessly in SF.

  • I will give it a shot next time I order out. I really can’t stand talking to people on the phone giving them food orders. Somehow, they always fuck it up.

    Hopefully it will email back some confirmation that the place actually received the order. Not going to name the place, but I used an online order system to buy a pizza a few weeks back. After waiting 2 hours, I decided to call and find out what happened. Needless to say, their printer didn’t work and they never got the order. Had I not called, I would have waited around all night never knowing my order was send to /dev/null.

    • GrubHub.com does do an e-mail confirmation for all orders and our customer service will contact you if there is a problem. You should def. check us out. Let me know what think. Feel free to give us feed back. You can e-mail (amyle@grubhub.com or send us a tweet: @grubHub.

      Amy

  • Seamlessweb.com is also a good competitor for that. Big in NY.

  • GrubHub definitely has more restaurants delivering to more locations than anyone else out there. Very happy to see this; congrats to the team!

  • Order of favorite menu places: allmenus.com, foodiebytes.com, crazymenu.com, menutopia.com, menupages.com

  • I live in Oakland and I use this site for food deliveries. I went to Los Angeles this past weekend and was a little disappointed that they do not yet serve the Los Angeles area, this idea can be really huge.

  • It’s been satisfying to be able to grow the business and secure this funding for GrubHub.com.

    I posted a blog reflecting on our first round of investment in 2007 at knowist.com

  • It’s been satisfying to be able to grow the business and secure this funding for GrubHub.com.

    I posted a blog reflecting on our first round of investment in 2007 at knowist.com:

    http://www.know...repreneurs.html

  • And in related news Joe’s Pizza Shack secured a round of angel funding to purchase a new Ford Escort to expand delivery service to the south side of Pittsburgh.

    Joe says they’re working on funding for an Internet order system, in the meantime you’ve got to pick up the phone and call in your order.

    • JB's comment is dumb - March 23rd, 2009 at 2:50 pm PDT

      Seriously JB. TechCrunch finally writes an article about a start-up that has a real business model and you make your snide comment about their funding to fuel expansion. You fail JB.

      I haven’t used GrubHub personally but it seems to be very useful for those who order delivery. The site seems easy to use.

      • Pretty funny (and telling) actually. Techcrunch deviates from the high flying start-up news and posts about a real business bringing in real revenue, and it gets flamed for deviating from the script. Now you know why companies that won’t be in business in two years get all the print. That’s what people apparently want to hear about.

  • Congratulations guys… I’m sure its been a challenging time to get funding.

    Glad to see some Chicago based companies reppin’ on TC.

  • Aww. All this happy menu-staring is making be hurl chunks of back-slappin fun!

  • Pretty funny (and telling) actually. Techcrunch deviates from the high flying start-up news and posts about a real business bringing in real revenue, and it gets flamed for deviating from the script. Now you know why companies that won’t be in business in two years get all the print. That’s what people apparently want to hear about.
    Sorry, forgot to add great post! Can’t wait to see your next post!

  • Why can’t one just pickup the phone and order?
    Why go to a web-page on internet and order?

    Huh…

    • Our users and I personally, love using GrubHub.com b/c sometimes I don’t know what I’m in the mood to eat and it’s so much easier to go to one site, type in my address and see all the restaurants that deliver to me and to view their menus. It beats going through that messy draw of paper menus (no need to kill off more trees). As for phone orders, you could pick up the phone and order your food, but on a busy Saturday night, who wants to be put on hold a bunch a times. But if you still want that human interaction, we list the phone numbers of the restaurants so you can still call in your order.

  • Matt’s been working hard on this.

  • I used to use grubhub, but swiched to http://eat24hours.com/ – much better, they have great coupons and discounts. I would say they are the best food delivery service in San Francisco and the bay area

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