Grubhub is one of the largest online food delivery companies in the United States. The company has grown rapidly in recent years, expanding its service to over 30 cities across the country.
However, Grubhub has been questioned recently about its operational viability.
Despite its rapid growth, Grubhub has been operating at a loss for several years. In 2017, the company reported a loss of $166 million.
This year, Grubhub has reported a loss of $124 million. Grubhub has attributed its losses to higher delivery costs, increased competition, and the US tax reform.
Despite its losses, some analysts think that Grubhub can still be profitable. The company has a large customer base and is able to generate high levels of repeat business.
Additionally, Grubhub is able to generate significant revenue from its partnership with Uber Eats. However, Grubhub faces significant competition from companies such as Uber Eats and food delivery services such as DoorDash.
Overall, Grubhub appears to be struggling to find a sustainable business model. The company’s losses are likely to continue for at least another year.
