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Yelp buys food ordering service Eat24 for $134 million

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In yet another show of its desire to branch out into food delivery and challenge GrubHub and Seamless, Yelp has acquired food ordering startup Eat24 for $134 million in combined cash and stock. Founded in 2008, Eat24 is a much smaller rival to the two big companies; it handles delivery for 20,000 restaurants spread across 1,500 US cities. "Its mission is to keep you from having to cook, shop, or wear pants," is how Yelp CEO Jeremy Stoppelman described Eat24 in a blog post announcing the deal.

Yelp entered into a partnership with Eat24 in 2013, which allowed its users in select cities to order food for delivery and skip sitting down at restaurants completely. "Online and mobile food ordering is still in its infancy, and restaurant and food searches are extremely popular on Yelp," said Stoppelman. "We believe that the acquisition of Eat24 will allow us to build a better, more seamless ordering experience for consumers that we can grow through 2015 and beyond." Yelp has made a series of acquisitions in seeking to broaden its utility and become an all-in-one destination for local recommendations, restaurant reservations, and food delivery.