Grubhub has reportedly announced it has entered into an agreement to take over Tapingo, a food delivery service platform for college campuses. Sources claim that Grubhub would acquire Tapingo for around $150 million, subject to standard closing conditions.
Incidentally, Tapingo has over half a million active diners at on-campus restaurants, cafes, and cashier-less stores. The combination of Grubhub’s restaurant marketplace and delivery capabilities with Tapingo’s network will offer more convenience to students and help campus restaurants to maximize revenues from pickup and delivery orders, the sources indicated.
Tapingo’s U.S. and Israel-based teams have, supposedly, developed a technology platform specifically designed for the campus use, by directly merging features into college meal plans and point-of-sale systems, ensuring smooth order-taking and real-time transparency for diners regarding waiting times. Apparently, the Tapingo platform also organizes operations and increases in-store efficiency for partner restaurants in campus, including Jamba Juice, Panda Express, Chick-fil-A, Chipotle, and Taco Bell, besides having partnerships with Sodexo and Aramark.
Matt Maloney, founder and chief executive officer of Grubhub, was quoted saying that the company and Tapingo share the same vision of increasing convenience for diners and improving the ordering and pickup experience of restaurants through technology. Grubhub values campus students and hopes that they become life-long Grubhub diners after their first order and Tapingo helps make student lives easy by giving them the technology they expect, Maloney added.
Daniel Almog, co-founder and chief executive officer of Tapingo, said it is a crucial step for the company to join Grubhub as it would provide more value to Tapingo’s student diners and campus partners due to Grubhub’s delivery expertise. He emphasized that the company could serve their loyal diners even after they graduate from college by being in alliance with Grubhub’s network of more than 85,000 restaurant partners.
For the record, the acquisition deal is expected to close in the fourth quarter of 2018 and the financial impact of the expected acquisition will be discussed by Grubhub during its third quarter earnings call.