Taco Bell, KFC Coming to GrubHub in New Deal

February 13, 2018         By: Steven Anderson

If you’ve ever wished that you could get fried chicken and a burrito delivered to your house from the same mobile interface, then do we have news for you. Yum Brands recently entered into a partnership with GrubHub that not only injected $200 million of raw capital into the company, but also gave GrubHub a new board member and several new restaurants for delivery.

Under the arrangement, Yum Brands is buying the $200 million worth of stock in GrubHub, giving it necessary liquidity to step up its delivery operations. Additionally, Pizza Hut US president Artie Starrs will be joining the GrubHub board as what’s described as an “independent director.” The measure gave Yum Brands shares a bit of a step up in trading, with shares up five percent in premarket trading at one point.

Greg Creed, CEO of Yum Brands, noted “We are committed to making our iconic brands easier to access through online ordering for pickup and delivery, and aggressively pursuing delivery as a strategic global growth opportunity, with nearly half of our 45,000 restaurants already offering it today.”

Reports also suggest that Pizza Hut is out of this deal, likely because Pizza Hut locations already have their own delivery apparatuses, and Yum Brands likely didn’t want to step on its own toes supplanting those workers with GrubHub workers.

The notion of delivered food is a great one as far as I’m concerned, and speaking for an area that has a lot of Yum Brands locations present, it’s likely one that will be a lot more farther-felt than most delivery operations have done. I’m personally looking forward to the day when all food delivery is accomplished by airborne drone—that could really open up some delivery radii—but until then, more GrubHub certainly couldn’t hurt.

Naturally, this is also a development tailor-made for mobile payments; paying from the same interface that you order from takes a lot of unpleasantness out of the picture, particular if you don’t tip your driver super well.  It also makes delivery driving safer, as drivers no longer need to carry cash. They would literally only carry food, as delivery can be a pay-ahead-only option. Thus the combination of GrubHub and Yum Brands should make for an appetizing return in the end.