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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.

When Maloney mentioned American publics preference in engaging with their local restaurants through digital ordering as a driver for market growth, which segment of the Macro Environment was he referring to?

Physical

Economic

Sociocultural

Political/Legal