We saw this one coming. Days after rumors swirled that online food service GrubHub Seamless made a confidential filing for an initial public offering, reports confirmed the news by the end of the week, asserting that the company filed paperwork on Friday for an initial public offering up to $100 million. Forbes was one of the first to break the news, and it said that GrubHub expects to be listed on the New York Stock Exchange under the ticker GRUB.
GrubHub said in its S-1 filing, highlighted by Forbes, that its 2013 revenues hit $137 million, reflecting an increase of 67 percent from 2012, and its net income was $6.7 million. The company totaled more than 135,000 combined orders, or “Daily Average Grubs,” in 2013 and made about $1.3 billion in gross food sales. GrubHub now offers its services to residents of 600 cities across the U.S. These numbers illuminate significant growth in both users and revenue for the online restaurant menu and takeout-ordering service, and the company’s executives maintain that there’s still a lot of progress to be made.
GrubHub was allowed to initially file confidentially for its IPO because under U.S. securities rules, companies with less than $1 billion in revenues in the past fiscal year are allowed to initially file secretly with regulators. Someone eventually spilled the beans for GrubHub, but no rumors were able to be officially corroborated until Friday.
GrubHub and Seamless merged in May 2013, although New York-based Seamless was founded five years before GrubHub in 1999. Prior to their merge, Seamless was already planning on going public, but those arrangements were delayed when the two parties consolidated in 2013. Now, more than six months later, the two will go public together, although it is still unclear how much the sale will raise or what the consolidated company will be valued at.
What is clear is that the company is growing in popularity among customers, and investors still see lots of room for growth. Investors have been pleased by GrubHub’s success in taking advantage of the mobile space, allowing customers to place orders on mobile devices, and Forbes reports that up to 43 percent of customer orders during the quarter ending December 31 were facilitated through the company’s mobile app.
Customers have also shown an appreciation of GrubHub’s platform of partnered diners and restaurants across more than 600 cities, and the number of the company’s connections is only growing. According to a Euromonitor report cited by the company, highlighted by Forbes, 61 percent of U.S. restaurants are local, family-operated business, and that translates to a market of about 350,000 independent restaurants with over $200 billion in sales and $67 billion in takeout orders. Those numbers mean serious business for GrubHub — as long as it can continue securing partnerships and nabbing new customers, but with this latest IPO, it is clear that the company is ready to go big.