It’s a match made in deliciousness.
Seamless and GrubHub, two of the top online food delivery services in the U.S., are joining forces. The former rivals on Monday announced plans to merge into one organization, letting Internet users in 500 U.S. cities order food online from more than 20,000 local takeout restaurants. There’s no word yet as to what the merged group will be called, though GrubHub co-founder and CEO Matt Maloney will serve as CEO of the new group and Seamless CEO Jonathan Zabusky will serve as president.
Financial terms of the agreement were not disclosed. According to a report from Bloomberg, no money is changing hands, since this is strictly a merger, not an acquisition. The deal must now be approved by U.S. regulators.
In a joint statement, Seamless and GrubHub said the merged company will offer a better experience to hungry diners across the U.S. and U.K. and corporate clients. The two companies plan to combine their research and technology into one streamlined product, and said together they will have greater financial flexibility to pursue growth opportunities.
“We are excited to combine the strengths of these two dynamic organizations in an industry that is rapidly gaining traction,” Maloney said. “We believe the merger will enhance the products we are able to offer both our diners and restaurants.”
Meanwhile, Zabusky said the combined firm will bring together the best of what each company has to offer — like the Seamless iPad app and GrubHub’s innovative Track Your Grub feature, which lets diners keep tabs on their order.
“Both companies also share a strong commitment to provide world-class service to restaurants, diners and corporate clients,” Zabusky said. “This merger is an opportunity to glean the best from each platform and improve upon what we bring to all of our partners.”
Together, Seamless and GrubHub’s online and mobile platforms sent approximately $875 million in gross food sales to local takeout restaurants last year, resulting in combined revenue in excess of $100 million.
It’s a big day for tech deals, meanwhile. Yahoo this morning acquired Tumblr for $1.1 billion.
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