June 2015 Presentation

Market opportunity

The Market

360 ThousandRestaurants

$220 Billionby Americans

$70 BillionThrough

Takeout/Delivery

GrubHub’s Share 30 Thousand

Restaurants forTakeout orDeliveryNearly $2

Billion Gross Food Sales

5 MillionActive Diners

180 ThousandDaily Orders

Huge Market Potential

$2 Billion Gross Food Sales

39% YoY Growth

5 Million Active Diners47% YoY Growth

30 Thousand Restaurants41% YoY Growth

GrubHub’s Growth

So what’s the problem?

GrubHub’s 2-Sided Network

“How often do you to order takeout/delivery online from a restaurant you’ve never had before?” Never 15.6%

Seldom 37.5%

Sometimes 25%

Often 12.5%

Almost Always

9.4%

12.5%

9.4%

So what’s the problem?

1. User Engagement

2. Restaurant Acquisition

3. Market Share Retention

Competitive MapStrong UX

Low Volume

Weak UX

High Volume

Benefits delivery.comGrubHub / Seamless

Eat24 TryCaviar

Rewards & Loyalty Program

Picture Menu

“Try New” Recommendations

Most Popular Dishes

Most Liked Dishes

Feature comparisons

Filter Button - “Try Something

New”

Picture Menu - “Great

Discoveries”

Loyalty Program - “Most Valuable

Foodie”

Our solutions

SWOT analysis

1. Leverage largest restaurant-diner network2. Proven Track Record- Restaurants: 41% YoY Growth- Customers: 47% YoY Growth

Strengths

1. Increased discoverability is just a transfer of wealth until it leads to more 2-sided acquisition2. Loyalty Program will cut into profit margin

Weaknesses

Promoting New Restaurants to Diners will:1. Increase GrubHub’s restaurant

acquisition 2. Increase Diner engagement and

use

Opportunities

1. Increasing discoverability may harm markets with limited options2. Users may be risk averse to trying new places

Threats

+ Helpful -

+

Exte

rnal

--

In

tern

al

+

Strengths Weaknesses

Opportunities Threats

Extensive 2-SidedPartner Network

Track Record

Discoverability = Revenue

Cost of Loyalty Program

Limited Markets may suffer from Initiative

Improve Restaurant Acquisition

Increase DinerEngagement

Improve 2-Sided Retention

- Harmful +

+ Helpful -

- Harmful +

+

Exte

rnal

--

In

tern

al

+

Deliverable Goal MetricEffort1 = High10 = Low

Impact1 = Low10 = High

PriorityHighest to

LowestTimeline

Filter Button(Try Something New)

Increase Engagement

3-5% of Daily Orders

9 4 36 = 1st Q1

Picture Menu(Great Discoveries)

Increase Engagement

5-7% of Daily Orders

5 7 35 = 2nd Q2-Q3

Loyalty Program(Most Valuable Foodie)

Increase Retention

10% NPS Growth

4 8 32 = 3rd Q3-Q4

Feature Prioritization Matrix & Metrics

Timeline

Restaurant Discovery Impacts

1. User Engagement2. Restaurant Acquisition3. Two Sided Retention

Stakeholder Meetings

Feature #2 - Great Discoveries Picture Menu

Gather Data

Analyse Data

Feature #3 - Rewards & Loyalty

Program

Business Analysis Loyalty

Percent

Feature #1 - Filter Button

Create Algorithm

Stakeholder Matrix

MANAGEExecutives

SATISFY

Developers

MONITOR INFORM

Marketing

Operations

Strong Influence

More Interested

Weak Influence

Less Interested

Sales

UX Design

Restaurant Partners

Users

Project Roadmap - Feature #1“Try Something New” Filter Button

Update Database

Create Filter

July 2015 August September

Plan

Build

UX Testing Build

QA & Improvements QA FixesDevelo

pm

ent

Team

1 Quarter

Project Roadmap - Feature #2“Great Discoveries” Picture Menu

Gather User Data

Analyze Preferences

October 2015 November December January 2016 February March

Plan

Plan

Create Algorithm

Prototype Picture Menu

Build

Usability Testing & Optimize UX

Integrate Algorithm

Plan

Plan

Build

Data

Team

Desi

gn T

eam

QA & Improvements

QA & Improvements QA

QA

Fixes

Fixes

Add Ons

Add Ons

2 Quarters

Project Roadmap - Feature #3“Most Valuable Foodie” Loyalty Program

Optimize Loyalty Rates

Determine Reward Ratio

March 2016 April May June July August

Plan

Plan

QA & Improvements

Update Account Details

Integrate Loyalty Points with Payment

QA & Improvements

Build

Busi

ness

Team

Develo

pm

ent

Team

QA

QA

Fixes Add Ons

Build

2 Quarters

(In Thousands) Year End 2013 Year End 2014 Projected 2015 Updated 2015

Diners 3,421 5,029 7,380 7,653

Gross Food Sales 1,014,900 $1,787,400 2,449,617 2,484,842

Sales and Marketing

37,347 128,710 108,573 111,433

Development and Operations

34,173 62,509 93,943 97,496

Net Income (before taxes) $14,889 $44,984 $75,903 $77,285

Projections

Potential Future Developments

Expand Loyalty Program

Partner With Third-Party Vendors For Point Redemption

Q&A

Ishan: ishans@grubhub.comIgor: igork@grubhub.com