Food delivery company GrubHub Inc (NYSE: GRUB) had a busy Thursday as the company announced a new product launch and CEO Matt Maloney was a guest on CNBC's "Mad Money."
'Ultimate Technology' Launch
GrubHub announced the launch of a new hardware and software solution platform called Ultimate technology. The first-of-its-kind solution combines all restaurant ordering channels into one system. The new product will connect all relevant restaurant workers directly with diners for pickup, delivery, or in-store orders.
Maloney said in the press release the new technology gives restaurants of any size the ability to "please diners with an easy, digital pickup experience."
"Diners have come to expect ordering ahead for pickup to breeze through busy rush hour crowds and grab their morning coffee or lunch, but currently they can only enjoy this convenience at large QSRs," he said.
Maloney: Pickup 'Sucks'
GrubHub revolutionized the food delivery business and is now looking to do the same with pickup orders, Maloney told Jim Cramer in an interview. As it stands today, the process of pickup orders "sucks" and the company's Ultimate technology solves the conundrum. Instead of needlessly waiting in line to place an order and then waiting even longer for the food to be made, a Grubhub user can pre-order their food for pickup from the app.
The restaurant industry as a whole combines for $250 billion worth of take out orders, he said. More than half of those orders are for pickup and Grubhub is addressing this large market at a time when the company's competitors aren't.
"The days of walking into a restaurant and seeing those 10 people, and in line, and having to stand there, and wait, and wait, and wait until you can talk to someone — they're gone," Maloney said.
Maloney also said Grubhub is working on a sports stadium application so sports fans can order food from their seats and see in real-time when it is ready to pick up at a kiosk. For now, the company doesn't have any deals to announce.
'Promiscuous' Comment, WSJ Takeover Report
Grubhub described customers as being "promiscuous" in a 2019 investor letter and Maloney told Cramer it's a "great word." He explained people buy food online across multiple platforms that offer nearly the same choices and similar delivery platforms.
But Grubhub emphasized in the letter it looks to stand out through its massive loyalty infrastructure where restaurants offer incentives to its diners, he said. Nevertheless, Gruhub's stock was hard hit in reaction to the letter and only recovered when The Wall Street Journal reported Grubhub is an acquisition target.
Maloney told Cramer he "doesn't know who their sources were" and "were barking up the wrong tree." Nevertheless, as a public company, Grubhub is bound to review any and every valid offer.
"We would totally evaluate any offer but we haven't had one yet," he said. "That was my point. We aren't looking for one."