Please read the short article and answer the question

GrubHub will continue investing in its long-term strategy and differentiate itself in the crowded online food ordering space even as its stock faces pressure, CEO Matt Maloney told CNBC.

With a $6.4 billion market cap, the company is working to defend its position against other delivery services like Uber Eats, Squares Caviar, DoorDash, and Postmates. Grubhub has responded to increased competition with marketing campaigns and technology updates, which has cut into margins, Cramer said. The market now is 10 times what I thought it was 5 years ago when GrubHub went public, Maloney said. And its because the American public has just adopted digital ordering as their preferred way to engage with their local restaurants.

Maloney said he is focused on making money as a marketplace that sells demand generation, a marketing operation which creates interest in a product. Grubhubs primary product is to sell access to consumers, rather than being a logistics company, he added.

Grubhub partners with restaurants, who subsidize part of the transaction fee, Maloney said. That gives them access to customer data. He said it keeps prices cheaper on the platform. That includes the $200 million partnership with Yum Brands, the parent of Taco Bell, KFC, and Pizza Hut, nearly a year ago. As a tight partnership, were able to execute on technology and growth for [Yum] in a way that nobody else in the industry is doing it right now, Maloney said.

Grubhub also serves customers ordering for pick up and catering. The company acquired Tapingo, a platform that focuses on pick-up orders, last September for $150 million to gain more access to the college student market, Maloney said.

Even as the labor market remains tight, Maloney said the gig economy is still expanding, which Grubhub benefits from. Were seeing a lot of people want to be delivery drivers because the flexibility they get from being an independent contractor, he said.

Which strategy is the main focus of this statement: The company acquired Tapingo, a platform that focuses on pick-up orders, last September for $150 million to gain more access to the college student market, Maloney said.

Differentiation strategy

Vertical diversification

Horizontal diversification

Unrelated diversification

Two of Grubhubs competitors, Uber Eats and Squares Caviar, are backed up by resourceful parent companies (e.g., Uber and Square), which allow them to compete aggressively on price. Based on value-based framework, what are the things Grubhub could do in order to compete more effectively with Uber Eats and Caviar?

Leverage their current market share advantage to charge higher price to customers

Lower the price to compete for more customers

Enhance the speed and quality of their delivery services through innovation

Reduce the portion of delivery fee for independent contractors to enhance Grubhubs margin