NEW YORK (TheStreet) -- TheStreet's Ross Kenneth Urken and his sister Nicole Urken, the research director for "Mad Money," were with Jim Cramer to help shed some knowledge the online order-in business.
Two such companies that merged without garnering much attention (both were private) were Seamless and GrubHub!. Although there still isn't a name yet, certain aspects have been figured out. One is that the CEO of GrubHub!, Matt Maloney, will become CEO of the merged companies.
"There wasn't a huge difference between the two," Nicole Urken said. Essentially, each company does the same thing, which is to make it easy to place carry-out and delivery orders from restaurants, but in different cities: GrubHub! in Chicago and Seamless in New York City.
Nicole added, "it's the carry-out of OpenTable (OPEN)," the online application used to reserve seating at restaurants.Cramer had never heard of either of the take-out companies and wondered why Groupon (GRPN) didn't buy GrubHub!, especially with both being based in Chicago. Nicole replies, "They probably should have. This combination might be an attractive target for them." Since potential users can already tip and read reviews online, combining that with a take-out service could eliminate a lot of the time and hassle it takes to look everything up separately. Cramer wonders if more traditional families will adopt a new concept like this, but Ross believes they will. "You can use it on mobile, you can use it online," he said, adding that "it's the convenience. You value that time." --Written by Bret Kenwell in New York.
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