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Grub With Us
Grub With Us
Problem
We create so many virtual friendships that we forget about the importance of in-person interaction.
Solution
Browse
Find people to eat with and/or places to eat at
Reserve
Reserve a seat through our hassle-free payment system
Socialize
Meet new people over a family-style meal In any city
Value
For Grubbers
Social: Meet new friends, potential dates, and business partners Comfortable: Social interaction without awkward moments Convenient: Everything is set up for the user, all they need to do is reserve the ticket Flexible: Go to any city and find company to eat with Enjoyable: Eat delicious food and discover new venues Useful: Additional features like Plan Your Own Meal allow users to invite friends or help their firms organize hassle-free group meals
For Restaurants
Increase visibility: Bring traffic to businesses Unique marketing: Replaces traditional, inefficient ads Higher revenue share: Gives back larger percentage of sales than deal sites to restaurants Improve sales during off-peak days: Enables restaurants to host events on GrubWithUs during less busy days Offer unique experience: Unlike deal sites that focus on quantity, GrubWithUs focuses on quality. This gives customers a better meal experience
Business Model
Restaurants
Customers
GrubWithUs partners with restaurants to provide meals and receives about 25% discount prices.
Grubbers pay to reserve meals with other Grubbers at prices 50% above the market rate.
GrubWithUs is a new type of networking which we dub Activity Networking. Our business model seems quite simple, but this Groupon/Meetup/eHarmony hybrid is a win-win for everyone in the grubbing process Eddy Lu, CEO & Co-Founder
Go-To-Market
Social Media
10,000 Tweets
Referrals
Pay
over the past year Facebook Connect leverage 600Mm user base
$2 for each referral Got few thousand of new users through this campaign
Event Hosting
Event
city big publication as many journalists as possible Have a network effect when colleagues of the journalists that we approach will approach us
Approach
hosting and planning for private parties will foster relationships with restaurants Have a private platform on a separate website for these purposes Create custom events with celebrities
$342Mm
$100-365Mm $99Mm
$6.92
Assumptions
Demographic Trends
Technology Trends
Business Factors
Restaurants part of the local ads $130B market Fine Dining comprises 19% of total local ads 28% of the U.S. population live in NFL cities Facebook population above 18 500, 206,089 $10 is the potential revenue we can get from each reservation
Increased households with internet access Increased per capita disposable income Lower Marriage rate / more singles Increasing population mobility including across border
Social Media Revolution Deal sites are positioned to have the immediate effect on a business A critical mass of local, computerized restaurant reservation books Traditional ads are being replaced by services like GrubWithUs
Competitors
Customer Base
Professionals
Entrepreneurs
Dinner daily
Lunch daily
Lunch on Tuesdays
Social
Limited to meeting people with similar Linkedin network Does not display cost of potential meal on site
Matches user with 1 person per time Must setup meeting at least two days in advance
Ease of Use
Revenue Channels
Ads
None yet
None yet
Strong
Weak
Phases
Issue 1: Expand to all NFL Cities
Add 5 urban centers per year Acquire Competitors International Expansion
2011-2013
Q1 Q2 Q3 Q4 Q1
2013-2015
Q2 Q3 Q4
Defense Result
Limiting competitors and increasing barriers to entry by achieving scale
Customers rely on our product for other services Establish GrubWithUs as market leader
Valuation
EBIT, $ MM 16 14 Users, Millions 12 10 8 6 4 2 0 2011 2012 2013 2014 2015 1 4 10 15 $90 $80 $70 $60 $50 $40 $30 $20 $19 $1 2012 2013 2014 2015 $56 $84
$10
$0
$0 2011
Key Data Points: Initial Investment: 5-10 million Number of Potential ERB Restaurants: 41,600 Global Facebook User Base Above 18: 500 MM Growth in the past 3 months: 183% Growth in the past 12 months: 1600%
2012 $641 $9 $5,445 $2,722 $544 $1,089 $1,089 2013 $3,670 $9 $33,034 $6,607 $3,964 $3,634 $18,829 2014 $10,418 $10 $98,975 $19,795 $11,877 $10,887 $56,416 2015 $14,764 $10 $147,642 $29,528 $17,717 $16,241 $84,156
Users Worldwide, thousdands Value per Transaction, $ Total Revenue (MM) Sales and Marketing General and Administrative Research and Development EBIT (MM)
Team
Founders
Eddy Lu
CEO and Co-Founder Serial Entrepreneur
Daishin Sugano
COO and Co-Founder Serial Entrepreneur
Chuck Templeton
OpenTable GrubHub
Yuri Milner
DST Start Fund
Dustin Moskovitz
Asana Facebook