Grubhub, a well-known food delivery service, is making waves with its latest initiative to revive Seamless, a beloved grocery delivery platform in New York City. This strategic decision aims to target the platform’s biggest market and gain a competitive edge in the industry.
Although Grubhub merged with Seamless in 2013 and transitioned its visual identity closer to parent company Just Eat Takeaway in 2021, Seamless remains a household name in the NYC area. Grubhub CEO Howard Migdal expressed in an interview with Bloomberg that while the company will continue to focus on Grubhub as a national brand, they also plan to invest in Seamless to strengthen its presence in the market.
Seamless was founded in 1999 by two lawyers in New York City who wanted to simplify in-office food ordering without the hassle of dealing with individual restaurant menus. After Grubhub acquired Seamless in 2004, Just Eat Takeaway acquired both operations in 2021, gradually phasing out Seamless’s operations as a separate brand. Most recently, the super app Wonder acquired Grubhub from Just Eat Takeaway in a deal valued at $650 million, signaling a new chapter in their partnership.
The relaunch of Seamless is positioned as the next chapter in this evolving relationship. Grubhub will continue to be the national brand while leveraging Seamless’s market appeal to expand its market share in the NYC area. The brand has introduced a redesigned Seamless app with benefits like zero fees from top New York restaurants and low fees across the merchant network. To celebrate the platform’s revival, customers can enjoy deep discounts from iconic restaurants like Di Fara Pizza, Han Dynasty, Thai Villa, Adel’s Famous Halal Food, and Katz’s Delicatessen.
Additionally, Grubhub’s app will undergo a refresh with updated typography and bold colors under Wonder’s new leadership. The company emphasized the strong brand preference for Seamless in NYC, driven by its long history of serving residents and corporate clients. Grubhub stated that in a competitive market where food delivery services are becoming more standardized, the Seamless brand holds clear value in New York City.
While Grubhub trails behind competitors like DoorDash and Uber Eats nationally, capturing only 5% market share, it has maintained a 22% market share in New York City, on par with DoorDash’s 26% and Uber Eats’ 52%. As Grubhub ramps up its marketing efforts to engage NYC consumers, Seamless plays a pivotal role in its strategy. The success of this initiative will ultimately determine if Seamless can win over skeptics and solidify its position in the market.
In conclusion, Grubhub’s decision to revive Seamless demonstrates its commitment to the NYC market and its dedication to delivering a seamless and convenient food delivery experience for customers. With a renewed focus on Seamless, Grubhub aims to leverage its brand strength and market appeal to drive growth and success in the competitive food delivery industry. Time will tell if this strategic move will pay off and position Seamless as a top player in the NYC market.
