Grubhub Seamless, the online and mobile food ordering service company, now processes nearly a quarter-million (234,700) online food orders per day on average, according to its first quarter earnings last week. That’s a 30% jump from the same quarter of last year, although it’s a smaller growth than previous years.
As seen in the chart below, put together by BI Intelligence, Grubhub continues to grow its daily average order volume, but at a slowing pace. Its daily average order has nearly doubled in the last two years, but at the same time, its growth rate has dropped nearly 10 percentage points year-over-year.
But investors seem to believe there’s still huge upside. Although a recent Morgan Stanley survey revealed that nearly 80% of Americans – and 44% of New Yorkers – are clueless about Grubhub, the investment firm says “low penetration and consumer awareness could drive a 5x expansion in GRUB’s user base.”
In fact, Americans only spend about $US9 billion a year on online food ordering, a tiny fraction of the total $US70 billion food takeout and delivery market. Grubhub already controls over 20% of that $US9 billion online market, and has plans to expand into the food delivery market as well: it recently acquired two startups, Restaurants on the Run and DiningIn, that currently deliver for more than 3,000 restaurants in the US.
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