Support our non-partisan non-profit newsroom 💜 Donate now

Investors hunger for GrubHub

Jeff Tyler Apr 4, 2014
HTML EMBED:
COPY

Investors hunger for GrubHub

Jeff Tyler Apr 4, 2014
HTML EMBED:
COPY

Momentum is building ahead of the initial public offering for GrubHub.

“So far this year, there have been 65 IPOs, raising $10.7 billion, a level of activity we have not seen since 2000,” says Kathy Smith, a principal with Renaissance Capital, which specializes in researching and investing in IPOs.

In the case of GrubHub, Smith says sales are growing by more than 40 percent. 

And with more people using smartphones, the number of consumers using GrubHub could keep growing.

But GrubHub also faces potential challenges from other Internet companies like Yelp and Google.

“All these companies could theoretically can come in and say, ‘Hey, we’re going to be competing against you. Watch out.’ That’s their biggest worry,” says Peter Krasilovsky, a senior analyst with the media-research firm BIA/Kelsey.


Take Out Graphic

There’s a lot happening in the world.  Through it all, Marketplace is here for you. 

You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible. 

Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.