Yelp, the company that connects consumers with local food businesses, has acquired Eat24, a U.S. food delivery business that competes with GrubHub, Delivery.com and others in the area of delivering food on behalf of various restaurants. Yelp has acquired the company for $134 million with $75 million in cash and the rest in Yelp shares, for the company.
The acquisition is expected to get the company more contact points with restaurants and shore up its core listings business with another revenue stream.
Eat24 currently has about 20,000 restaurants on its platform across 1,500 cities.Yelp currently has 135 million average monthly users, with 72 million average monthly uniques on mobile.
“As more food ordering transactions move online, further integrating Eat24 will enhance our user experience with an easy-to-use product and service that allows our large consumer audience to transact directly with businesses,” said Jeremy Stoppelman, Yelp co-founder and chief executive officer.