Your Spare Tire Is Taking Grubhub-Seamless Public
Yesterday, I ordered both breakfast and dinner from Seamless. I didn't consume lunch since that would have involved leaving my laptop and walking across the street. Because I am disgusting, Grubhub, Inc.—the food delivery monster created after former arch enemies Seamless and GrubHub merged in 2013—is going public.
According to the S-1 filing, the company generated $137.1 million in revenue last year, a 67 percent increase from 2012. As Dan Primack notes, however, that Grubhub has declining profits on that rising revenue. Last year, net income was $6.7 million. The company says it has 3.4 million "active diners," which they define pretty broadly as unique accounts that have placed an order using their platform in the past 12 months.
The cap table isn't your typical venture capital roll call, although Benchmark's Bill Gurley, who has had the hot hand for months now, makes an appearance. There are also a number of leveraged buyout firms. Stockholders include: Spectrum Equity, Warburg Pincus Private Equity, GS Capital Partners, Thomas H. Lee Partners, Benchmark Capital Partners, Origin Ventures II.
GS Capital Partners has 8.9 percent of the shares, Benchmark owns 8.3 percent.
One of the sections under "Risk Factors," Grubhub says:
We make the restaurant and diner experience our highest priority. Our dedication to making decisions based primarily on the best interests of restaurants and diners may cause us to forego short-term opportunities, which could impact our profitability.
It's the SEC equivalent of answering the "Name one weakness" interview question with, "I work too hard."
We're still combing through the S-1 and will update if we find anything juicy.
