NEW YORK (AP) — Shares in Grubhub are down more than 30% after it sharply cut its revenue expectations for the year and warned of intense competition.
The steep decline in share price wiped away almost $2 billion of the company’s valuation in the public market at the opening bell.
In a letter to shareholders the company said, “supply innovations in online takeout have been played out” and that annual growth is slowing to a longer-term rate of low double digits.
The Chicago food delivery company cut its fourth-quarter revenue projections to between $315 million and $335 million and forecast earnings of between $15 million and $25 million.
Grubhub is facing significant pressure from new rivals including UberEats, DoorDash and PostMates.
Executives will speak with industry analysts Tuesday in a conference call.
Source: AP
