GrubHub Buys College Food Ordering Company Tapingo for $150 Million

Online food delivery company GrubHub Inc. announced Tuesday it agreed to buy college campus food ordering company Tapingo, Inc. for $150 million. The deal is expected to close in the fourth quarter of 2018, the companies said.

New York-listed GrubHub's stock was up as much as 3% Tuesday morning.

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GrubHub is the U.S. market leader in online and mobile food ordering and delivery services. The company reports a network of more than 85,000 restaurants and is active in over 1,600 cities in the U.S., as well as London. GrubHub owns other online food ordering platforms such as Seamless, LevelUp, Eat24, and MenuPages.

Founded in 2012 and headquartered in San Francisco with an additional office in Tel Aviv, Tapingo offers an online food ordering and delivery system that is centered around college campus life. The service enables users to order-ahead at on-campus cafes, restaurants, and cashier-less stores, and its platform integrates with college meal plans. The company reports over 150 partnering campuses in the U.S. Tapingo employs a team of 90.

Tapingo has raised $66 million in investments to date according to Pitchbook data. Investors include Greenfield Cities Holdings, Qualcomm Ventures, Carmel Ventures, and Fosun Capital Group.

Last week, shareholders of Dutch online food delivery company Takeaway.com NV approved the acquisition of 10bis.co.il Ltd., a Tel Aviv-based online food marketplace. In July, Takeaway.com agreed to pay around 135 million euros ($157.5 million) in cash for 10bis.

Founded in 2000, Amsterdam-listed Takeaway.com offers an on-demand online food delivery service from local restaurants, with 11.5 million European consumers. 10bis serves a similar function in Israel, but its primary service is a payment system which allows companies to pay for employee lunches.