Photograph by Daniel Acker — Bloomberg via Getty Images
By Reuters
May 3, 2016

Online food order and delivery company GrubHub reported a better-than-expected 27% rise in quarterly revenue as more diners used its services to order meals online.

The number of active diners using GrubHub’s services rose 24% to 6.97 million in the first quarter ended March 31 from a year earlier, the company said on Tuesday.

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GrubHub, which serves more than 40,000 restaurants in more than 1,000 U.S. cities, said revenue rose to $112.2 million from $88 million.

Analysts on average were expecting revenue to increase to $111.3 million, according to Thomson Reuters.

Net income attributable to shareholders fell to $9.9 million from $10.6 million, hurt by GrubHub’s heavy investments to expand its reach. On a per share basis, earnings were flat at 12 cents per share.

The company’s full-year revenue forecast of $450-$465 million compared with analysts estimates of $456 million. The company posted 2015 revenue of $361.8 million.

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GrubHub also said on Tuesday that it acquired LAbite, a delivery service servicing restaurants in Los Angeles and Orange counties.

The company faces growing competition in the business from Amazon’s Prime Now, Yelp’s Eat24, and ridesharing service Uber’s UberEATS.

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