Grubhub, an online food delivery service, announced today that it will acquire LevelUp for $390 million — in cash.
The announcement came in the company’s second quarter earnings release, which was first reported by TechCrunch. In the report, Grubhub’s CEO Matt Maloney says that this acquisition will serve an entirely different purpose than the ones the company has made before, focusing more on connecting customers and restaurants instead of expanding its current delivery reach.
“LevelUp’s leading restaurant-facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants,” Maloney said in the release.
LevelUp is a mobile ordering and payments platform that restaurants can integrate into their business to offer rewards and discounts for loyal customers. Popular fast casual restaurant chains like Chopt, Sweetgreen, and Potbelly Sandwich Shop already use the service.
The acquisition still needs to go through the standard regulatory waiting period, but when the deal closes, LevelUp staff will work under the Grubhub umbrella. Maloney told TechCrunch that the acquisition won’t change much for LevelUp’s business operations and that it’s possible for the company to continue on as its own brand.