It’s not clear how that’ll work in the long run, since there’s no protective moat to protect GrubHub once they’ve outspent their competitors. Pizza companies can re-hire delivery drivers if GrubHub tries to charge monopoly prices, and the bigger chains are fully capable of making their own ordering apps.

At this point I currently order my takeout through at least 3 separate small competitors to GrubHub. That these exist while GrubHub is still trying to use VC funding to push everyone out of the market makes me doubt that they’ll be able to recoup their investment without new competitors arriving.