Grubhub announced this morning that it’s agreed to acquire LevelUp for $390 million cash.
Founder and CEO Matt Maloney told me that while previous Grubhub acquisitions like Eat24 were designed to give the company’s delivery business more scale, “This is kind of a different acquisition. It’s a product and strategic positioning acquisition.”
LevelUp is based in Boston, offering a platform to manage digital ordering, payments and loyalty, with customers like Pret a Manger, Potbelly and Bareburger. Maloney said that buying the company allows Grubhub to deepen its integration with restaurants’ point-of-sale systems. That, in turn, will allow them to handle more deliveries.
At the same time, Maloney said LevelUp can help Grubhub build a restaurant platform that goes beyond delivery, for example by managing their customer interactions across mobile and the web.
“We want to help restaurants actively engage with their diners,” Maloney said. “This is a huge step in that direction.”