Rocket-fueled growth in third-party delivery got another positive data point this week, with Grubhub reporting record first quarter results that included 49% revenue growth during the first quarter of 2018.
For the first quarter, Grubhub posted revenue of $232.6 million, a dramatic rise from $156.1 million in the first quarter of 2017. Food sales grew 39% year-over-year, up to $1.2 billion, which is a nice jump from $898 million last year.
“Our team executed well in the first quarter, making meaningful progress toward our most significant goals for 2018. We’ve already launched dozens of new delivery markets, completed our Yelp and Eat24 integrations a quarter earlier than expected, and attracted a record quarterly number of organic new diners,” said Grubhub CEO Matt Maloney. “Our restaurant partnerships are broader and deeper than ever before, increasing our value to diners and driving sustained diner and order growth.”
GRUB’s stock price dropped approximately 8 percent on the news but stabilized in the days after the earnings call.
In an interview with Forbes following the news, CEO Matt Maloney suggested continued acquisition of smaller third-party delivery brands and general “drama” in the category, adding that, “In our industry, growth by acquisition is strong.”