LOS ANGELES (Reuters) – Grubhub Inc. ‘ s first-quarter net income tumbled 78 percent after touring expenditures to attract and retain restaurant partners and delivery customers.
GrubHub, which is fighting startups, ranging from DoorDash and Uber Eats Amazon.com Inc Amazon Restaurants, has a cylinder capacity of more than a half dozen companies since April 2014 the initial public offering and are spending aggressively to expand its services.
Sales and marketing expenses were $78.5 million in the first quarter, nearly 61 percent more than a year earlier.
Revenue jumped 39 percent to $323.8 million during the quarter, when the total costs and expenses climbed 57 percent to $314.9 million.
In the first quarter net profit 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