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Grubhub Acquires Restaurant Loyalty Company LevelUp for $390 Million

Grubhub, the online food delivery company announced Wednesday morning that it would acquire LevelUp for $390 million in cash, TechCrunch reported.

LevelUp, a Boston-based mobile ordering and payment platform was developed by the startup, SCVNGR. The platform helps restaurants connect with loyal customers to offer them rewards and discounts.

While other Grubhub acquisitions were made to expand the company’s delivery reach, CEO Matt Maloney says this one is different. “It’s a product and strategic positioning acquisition,” Maloney told TechCrunch. This time, working with LevelUp will help Grubhub better connect customers to restaurants, according to The Verge.

“LevelUp’s leading restaurant-facing technology and the team they have built in Boston will help Grubhub provide the most comprehensive solution for restaurants, powering everything from online demand generation to fulfillment for restaurants,” Maloney said. Maloney hopes the acquisition will help Grubhub better serve and engage with customers using the app.

“They’re doing something really well and we don’t want to screw that up,” LevelUp’s CEO and founder Seth Priebatsch said, according to TechCrunch. “We want to make as little change as possible, until we all understand how we’re better working together.”

Priebatsch added, “After close, the entire team will remain in Boston and our office will become Grubhub’s newest center of technology excellence.”

In the meantime, the acquisition will need to go through a mandatory waiting period before the deal closes, but the LevelUp staff will continue their work under Grubhub.