NEWS
08/03/2017 13:12 EDT | Updated 08/04/2017 11:01 EDT

Grubhub to buy Eat24 from Yelp

NEW YORK — Grubhub plans to gobble up another online food-ordering rival: This time it's Yelp Inc.'s Eat24.

Chicago-based Grubhub Inc. is paying Yelp $287.5 million for Eat24. That's more than double what Yelp, based in San Francisco, 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 says it will keep the Eat24 brand alive. 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 per cent in extended trading, while Yelp surged 19 per cent. Both companies also reported results after the bell.