Here's Why Grubhub and Yelp Both Had a Great August

Here's Why Grubhub and Yelp Both Had a Great August

Sometimes a business transaction works out well for both side of the deal. That's clearly how the market see the recent agreement between Grubhub (NYSE: GRUB) and Yelp (NYSE: YELP).

The two companies had been competing in the food-delivery space. They agreed to stop doing that with Grubhub acquiring Yelp's EAT24 service, while Yelp agreed to integrate online ordering from Grubhub into its platform.

The deal saves Yelp the cost of running Eat24 while bringing it revenue from any orders it generates for Grubhub on its platform. Conversely, Grubhub gets rid of a major competitor while getting access to its user base.

Continue reading

Source: Fool.com