Grubhub And Seamless Merger Essay
Opinion Piece
Grubhub to Merge with Seamless
Two of the biggest names in the online food delivery industry are set to merge. Grubhub and Seamless are two online food delivery rivals that compete in a very fast, endlessly growing market and the companies have decided to become one super delivery service.
Grubhub and Seamless, two privately held companies, compete in the online food delivery industry, which is a relatively new industry that is growing at a fast rate. More and more start-ups are entering the market due to the very little existence of barriers to entry. “International players and local start-ups are piling into the restaurant-to-home food delivery business, hoping to cash in on a growing multi-billion-dollar market in Canada” …show more content…
Because this industry is growing and more and more companies are entering, this merger will help these two companies increase their power, which will threaten the smaller more local services like Eat24.com in California or Delivery.com. Therefore, this merger will be eliminating the competition since the only intense competition in the market existed between Grubhub and Seamless themselves. This means that not only will they now have a very larger percentage of market share; they will have stifled the competition considerably. Because they compete in a fast-cycle market, Grubhub and Seamless were continually seeking ways to improve and maintain their competitive advantage; this merger will have accomplished that, giving these two firms an incredible advantage over their competitors. Matt Maloney, Grubhub’s co-founder and chief executive said, "By combining our complementary restaurant and diner networks, we are well positioned for continued growth in a massive market." (Holpuch)
This merger will be very beneficial to the new super delivery company. Grubhub and Seamless are such big players in the market that due to their merger, the competitive scope of the market will be reshaped in the process, taking the two biggest competitors and combining them to make one large delivery service, capable of serving more customers. Another benefit is that because these firms are already well established and have experienced success in the past few years, they could benefit from working with each other, learning and developing new
Grubhub to Merge with Seamless
Two of the biggest names in the online food delivery industry are set to merge. Grubhub and Seamless are two online food delivery rivals that compete in a very fast, endlessly growing market and the companies have decided to become one super delivery service.
Grubhub and Seamless, two privately held companies, compete in the online food delivery industry, which is a relatively new industry that is growing at a fast rate. More and more start-ups are entering the market due to the very little existence of barriers to entry. “International players and local start-ups are piling into the restaurant-to-home food delivery business, hoping to cash in on a growing multi-billion-dollar market in Canada” …show more content…
Because this industry is growing and more and more companies are entering, this merger will help these two companies increase their power, which will threaten the smaller more local services like Eat24.com in California or Delivery.com. Therefore, this merger will be eliminating the competition since the only intense competition in the market existed between Grubhub and Seamless themselves. This means that not only will they now have a very larger percentage of market share; they will have stifled the competition considerably. Because they compete in a fast-cycle market, Grubhub and Seamless were continually seeking ways to improve and maintain their competitive advantage; this merger will have accomplished that, giving these two firms an incredible advantage over their competitors. Matt Maloney, Grubhub’s co-founder and chief executive said, "By combining our complementary restaurant and diner networks, we are well positioned for continued growth in a massive market." (Holpuch)
This merger will be very beneficial to the new super delivery company. Grubhub and Seamless are such big players in the market that due to their merger, the competitive scope of the market will be reshaped in the process, taking the two biggest competitors and combining them to make one large delivery service, capable of serving more customers. Another benefit is that because these firms are already well established and have experienced success in the past few years, they could benefit from working with each other, learning and developing new