NEW YORK – Grubhub plans to gobble up another online food-ordering rival: This time it's Yelp Inc.'s Eat24.
Continue Reading Below
Chicago-based Grubhub Inc. said Thursday that it will pay Yelp $287.5 million in cash for Eat24. That's more than double what San Francisco-based Yelp paid to acquire Eat24 two years ago.
The two companies also announced a 5-year deal that will allow readers of Yelp's reviews to order food from restaurants that use Grubhub.
Grubhub said it will keep alive the Eat24 brand, which it said appeals to a younger demographic. Grubhub has acquired other competitors, including LAbite and DiningIn. Earlier this week, it announced a deal with online deals site Groupon, in which it will take over 27 markets of Groupon's OrderUp food ordering service.
Grubhub shares dropped 1.5 percent in extended trading, while Yelp surged 19 percent. Both companies also reported results after the bell.