Yelp has decided that it’s getting out of the food delivery business.
The food review website and business just announced that it would be selling its delivery arm, Eat 24, to Grubhub for a total of $288 million. The deal also brings Yelp and Grubhub together in a partnership where Yelp users will be able to begin ordering online through Grubhub directly. There’s no current timetable as to when that will occur, as the deal still needs to go through some customary closing procedures.
The deal makes perfect sense for both companies: Yelp now has the ability to focus and specialize on acquiring and sharing data about restaurants, and Grubhub adds another system into its food delivery fold. So far, investors have been loving the partnership, with Yelp’s shares climbing a staggering 27% today and Grubhub shares going up 9%. following the news.
Yelp had originally bought Eat24 for $135 million in 2015, so it definitely turned in a nice profit at the price they sold it to Grubhub for.
For us, the deal means that while Yelp Eat24 will be a thing of the past soon, we’re going to be able to utilize an awesome partnership between Yelp and Grubhub. It also means one less food delivery app will be crowding up our phone space.