Investors hunger for GrubHub

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.


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About the author

Jeff Tyler is a reporter for Marketplace’s Los Angeles bureau, where he reports on issues related to immigration and Latin America.

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