Grubhub Is Pulling Shake Shack Away From DoorDash
Shake Shack (NYSE: SHAK) this week announced that it will integrate its POS (point of sale) systems into Grubhub's (NYSE: GRUB) platform for nationwide deliveries. The two companies will initially test out deliveries in four areas -- New York City, Chicago, Livingston (in New Jersey), and Darien (Connecticut) -- before expanding the service to all of Shake Shack's 150-plus U.S. locations over the next nine months.
Shake Shack previously tested deliveries with DoorDash, Caviar (now owned by DoorDash), and Postmates. The fast-food giant might still offer deliveries on those platforms, but Grubhub's integration with Shake Shack's POS systems will likely make it the preferred delivery partner.
Let's see why this deal could help Grubhub gain ground against DoorDash, which overtook Grubhub as the biggest food delivery platform in the U.S. earlier this year.
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