Grubhub Inc. plans to gobble up another online food-ordering rival. This time it's Yelp Inc.’s Eat24.
Chicago-based Grubhub said Thursday that it will pay Yelp $287.5 million in cash 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 five-year deal that will enable readers of Yelp's reviews to order food from restaurants that use Grubhub.
Grubhub plans to keep alive the Eat24 brand, which it said appeals to a younger demographic.
Grubhub Chief Executive Matt Maloney said in a prepared statement that the two companies had “complementary goals and strengths,” and the deal, if...