Food delivery company GrubHub used to worry most about competition from venture-backed startups.
That’s not the case anymore.
In its earnings call Tuesday, CEO Matt Maloney said, “So Uber and Amazon are the new boogiemen in the market,” according to a transcript posted by SeekingAlpha.
“I think last year there was more concern around venture-backed startups that ended up not being quite as competitive as people were worried they would be and now we’re looking at these companies,” he continued.
In the last quarter, Uber has rolled out its GrubHub competitor, UberEATS. The ride-hailing giant used to offer only an instant lunch option — a few dishes that could be delivered in under five minutes — but now it offers delivery from local restaurants, putting it firmly in GrubHub’s territory.
Amazon’s PrimeNow program also promises restaurant delivery in less than an hour.
GrubHub continues to grow by gobbling up competitors in large markets — on Tuesday, it paid about $65 million to buy LABite — but taking on the big guns will be harder.
That being said, GrubHub’s CEO didn’t seem too concerned that Uber has a fleet of drivers at the ready and Amazon can tap an existing customer base. “… Unless someone invents flying bicycles, I don’t think that [delivery time] is going to be dramatically reduced in the near future,” Maloney added.
To Maloney, delivery companies don’t win on a logistical advantage, but in their partnerships and taking care of the restaurants.
“And so if you add it all up, there is no logical way for anyone to say, I have 2x your drivers on the road, so I’m going to have food there faster. And so if you think about it, it’s all about executing, giving the diners what they want, when they want it, making sure you can send incredible demand for restaurants and that’s what’s going to win.”
Disclosure: Jeff Bezos is an investor in Business Insider through hispersonal investment company Bezos Expeditions.
NOW WATCH: Domino’s is expected to start using these pizza-delivery robots within the next six months
Business Insider Emails & Alerts
Site highlights each day to your inbox.