GrubHub (NYSE:GRUB) has closed on its acquisition of LAbite, the latest in a set of expansions and acquisitions to expand its food delivery footprint.
It's updated guidance accordingly to account for the closing. For Q2, it sees revenues of $113M-$115M (vs. analyst expectations for $110.7M), and EBITDA of $30M-$32M (vs. consensus of $30.4M). For the full year, it's forecasting $465M-$480M in revenue (vs. consensus of $459.1M) and EBITDA of $125M-$133M (vs. $127.4M expected).
LAbite diners ordered nearly $80M in gross food sales last year. GrubHub logged $713M in gross food sales overall in Q1 despite uncooperative weather for the season.
OrderUp provides food-ordering/delivery services in nearly 40 U.S. markets through its site and apps, and claims to have processed 10M+ orders in its lifetime. Groupon (GRPN +3.3%) is buying the startup for an undisclosed sum.
Groupon, which counts many restaurants among its deal providers, declares pairing OrderUp's platform with Groupon's ~25M active North American customers will create "an online and mobile food ordering marketplace of significant size and scale." Shares have added to their Thursday gains following the announcement; the Nasdaq is up 1.2%.
The purchase represents a fresh challenge for online food ordering/delivery leader GrubHub (GRUB +0.8%), whose shares moved slightly lower following the news. In February, Yelp announced it's buying GrubHub rival Eat24 for $134M.
Re/code reports Square is set to announce the acquisition of Caviar, an online food-ordering/delivery platform that caters to high-end establishments. The NYT reports the purchase price could be around $90M.
Caviar tries to differentiate from GrubHub (GRUB +0.3%) and other rivals both through its high-end focus, and by providing its own fleet of delivery vehicles to fulfill orders. For now, the startup's services are only available in a handful of major metro areas.
Square, which has put its IPO plans on hold and has been reported to be mulling a sale, could cross-sell Caviar's offerings to the many restaurants that use its card readers and/or Square Reigster. The company could also integrate Caviar with its Square Order app (currently handled order pickups, but not delivery).