Grub Hub Going Public

Group-Floor-with-Gavel-e1396640293188Many investors are flocking to the newly available IPO for Grub Hub. One floor manager told his employees at the exchange on Friday that he liked Grub Hub, but he preferred the competitor company Seamless because they were more widely used on Long Island, where he was from. Of course, Grub Hub and Seamless are the same company and so stocks in Grub Hub soared to $26 above the asking price for a 35% first-day boost.

It may be confusing for consumers and traders that Grub Hub and Seamless are owned by the same people, but the CEO Matt Maloney says it is all part of the strategy. When they went public, they wanted to utilize a portfolio approach that had Grub Hub first and still maintained their three other brands: Seamless, Menu Pages, and All menus. After hearing the story of the floor manager, Mahoney said, “If traders on the floor of the NYSE love Seamless, then bless them…We will put dollars behind both, but we will be as strategic as possible. You can see the branding here, there are Seamless logo everywhere.” Even outside the stock exchange Seamless logos appear underneath the newly public Grub Hub signs. “Grub Hub is out national brand, so most markets in the U.S. are under Grub Hub. Seamless we’ve really pulled back to Manhattan” Maloney states.

Originally both companies were separate and planning on going public independently. The two ended up joining forces after they had great success in different geographical areas. With the two companies combined they now have over $1.3 billion in gross food sales per year and delivered food to 3.4 million people in 2013.

Maloney is excited about the future of both companies and has been celebrating Grub Hub going public, “The teams is taking this very seriously, but there is a of excitement.” Maloney promises that the company will continue to grow and improve and being listed on the NYSE is very important to the company.

Janet Yellen: Job Market Needs Low Rates

622x350Janet Yellen, the Federal Reserve Chair spoke to community development professional in Chicago on Monday, March 31 and made it clear that for the health of the job market we need low interest rates for quite some time to get the market back on track. Even thought the Federal government is scaling back their monthly bond buying purchases later in the year, Yellen stressed that do not have plans to raise the short term rate at any time in the new future. The Fed purchasing the bonds has been in an effort to keep long-term interest rates as low as possible.

Yellen comforting the public in this way has put investors at ease. She was clearly indicating that the Fed does not have plans to raise short-term rates. Many investors feared that this would come up by the middle of next year. Yellen’s remarks indicate that there is more time before short-term rates are affected. The reasoning of the fed may be that a short-term increase would have big consequences for borrowing costs and stock prices. This was Yellen’s first major speech since taking the office of the Federal Reserve Chair and she stated that she thinks, “this extraordinary commitment is still needed and will be for some time, and I believe that view is widely held by my fellow policymakers at the Fed.”

Just after Yellen spoke at the conference stocks began to rise. At the close of the day Monday the Dow Jones industrial average was up 134 points. Yellen also noted during her speech that the U.S. job market is still not improving as fast as it should. Because of this less than stellar recovery the market needs low interest rates to encourage citizens to borrow and spend.