LOSANGELES (Reuters) – Grubhub Inc’s first-quarter net income tumbled 78 percent after it ramped up spending to attract and retain restaurant partners and delivery customers.
GrubHub, which is battling startups ranging from DoorDash and Uber Eats to Amazon.com Inc’s Amazon Restaurants, has swept up more than a half-dozen companies since its April 2014 initial public offering and has been spending aggressively to expand its delivery network.
Sales and marketing outlays were $78.5 million (60.9 million pounds) in the first quarter, almost 61 percent more than a year earlier.
Revenue jumped 39 percent to $323.8 million during the quarter, when total costs and expenses climbed 57 percent to $314.9 million.
First-quarter net income fell to $6.9 million, or 7 cents per share, from $30.8 million, or 34 cents per share, a year earlier.
(Reporting by Lisa Baertlein in Los Angeles; editing by Jonathan Oatis)