In Grubhub’s latest initiative, it is reviving Seamless, the once beloved grocery delivery platform for New York City residents. The decision endeavors to take on the platform’s biggest market and eke out ahead of its competition.
Despite Grubhub merging with Seamless in 2013 and transitioning its visual identity closer to parent company Just Eat Takeaway in 2021, it’s still a household name in the area.
“We’re going to continue to lean into Grubhub as a national brand, but we’re also going to invest in Seamless, [which] has endured and had staying power in spite of us not investing that much in it,” Grubhub CEO Howard Migdal said in an interview with Bloomberg.
The brand will invest heavily into making Seamless the premier platform for the NYC area, Migdal said.
Seamless was founded in 1999 by two lawyers in the area who wished to streamline in-office ordering without having to deal with individual restaurant paper menus, according to the parent company. After Grubhub, founded in 2004, acquired the chain, Just Eat Takeaway acquired both operations in 2021, gradually phasing out Seamless’ operations as a separate brand.
Most recently, super app Wonder acquired Grubhub from parent Just Eat Takeaway in early January in a deal valued at $650 million. Under new leadership, Grubhub noted the Seamless relaunch is the “next chapter” in their developing relationship.
What’s the Deal with Seamless?
Grubhub will remain the company’s national brand; however, it will leverage Seamless’ market appeal to increase their market share in the NYC area.
On April 2, the brand debuted the redesign within the Seamless app as well as benefits such as zero fees from the “best of New York’s food scene” and low fees across the merchant network. Additionally, to celebrate the revived platform, several deep discounts will be available from iconic restaurants such as Di Fara Pizza, Han Dynasty, Thai Villa, Adel’s Famous Halal Food, and Katz’s Delicatessen.
As for Grubhub’s app, the color palate will deliver an updated typeface and bold colors to signal an overall refresh of both brands under Wonder’s new leadership.
“We completed a full brand audit when Grubhub joined with Wonder and found that there continues to be unwavering brand preference for Seamless in New York City, bolstered by our long history serving city residents and the strength of our corporate ordering business,” said Grubhub in a statement.
“In a time when the food delivery category has become more commoditized, there is clear value in the Seamless brand in New York City.”
Nationally, Grubhub trails other popular services such as DoorDash and Uber Eats when it comes to food delivery, capturing only about 5% market share, while DoorDash has more than 66% of the U.S. market, according to data from Bloomberg. However, in New York, the news source noted the challenger brand has maintained a 22% market share, on par with DoorDash’s 26% claim, and Uber Eats’ 52% command.
As Grubhub increases its marketing budget to connect with NYC consumers, Seamless is at the center of its strategy. Time will tell if the brand’s secret weapon is enough to win the hearts of its skeptics.
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