Grubhub has agreed to acquire San Francisco’s college-campus food ordering service Tapingo for $150 million.
The deal will allow the Chicago company to expand its reach to 150 campuses where Tapingo operates. Tapingo, founded in 2012, lets students order ahead at on-campus cafes and restaurants and processes tens of thousands of transactions a day, according to Grubhub.
Grubhub, whose software engineers are spread across offices in New York and Chicago, will add about 90 employees from Tapingo to its payroll as part of the acquisition. Tapingo’s San Francisco employees will stay in the city after the acquisition has closed, according to a Grubhub spokesman. Besides its South of Market headquarters, Tapingo also has an engineering office in Tel Aviv and operations in Denver.
Sam Hall, chief product officer at Grubhub, said it makes sense for the company to have a presence in cities with a lot of tech workers.
“We’re super excited that they’re already located in San Francisco,” Hall said of Tapingo’s local office. “Hiring is difficult. The more places we have as centers to attract and retain employees, that’s exciting.”
The transaction, expected to close in this year’s fourth quarter, adds yet another provider to Grubhub’s growing food delivery service. Grubhub’s stock rose more than 2 percent Tuesday following the announcement.
Since its founding in 2004, Grubhub has gobbled up several delivery services and other related businesses, including DiningIn and Delivered Dish.
Grubhub merged with a competitor, Seamless, in 2013, and went public a year later. It bought Eat24 from San Francisco’s review website Yelp for $287 million in 2017, before announcing it will shut down Eat24 before the end of this year.
Grubhub’s takeover of LevelUp, a tech startup that helps restaurants manage payments and loyalty programs, closed only two weeks ago, according to a Grubhub spokesman. The company paid $390 million for the Boston startup.
Those recent acquisitions gave Grubhub a home in new cities: Seamless was built in New York; Eat24 operated out of San Francisco; and LevelUp gave the company easy access to Boston’s workforce. Tapingo added Tel Aviv and Denver to the list.
“You got to go where the great engineers are,” Hall said.
Of Grubhub’s more than 2,000 employees in the U.S. and London, approximately 100 people, mostly in business, sales and product development, are in San Francisco.post was originally published here