GrubHub Inc. (NYSE:GRUB), the company which is about to report its first quarter results tomorrow, has been facing serious competition from its peers, Amazon.com, Inc. (NYSE:AMZN) and Uber. Amazon’s food service launch and the ride-booking firm’s growth have increased competitive pressure for GrubHub. As a result, the company is shifting its focus on higher quality diners, a factor which is expected to impact active diner growth during its first quarter.

Analysts believe that the company provides 8% of volume to the delivery drivers and has Delivery Gross Food Sales rate of more than $200m which should be a higher percentage in order to be on market competitive position.

Neil Doshi, analyst at Mizuho who has a Buy rating on the company’s stock, has justified his stance. He pointed out that the $2 billion company continues to expand its restaurant network, which now stands at 40,000 outlets. Additionally, based on the increasing traction for restaurant delivery services, the company is likely to make more sales than rivals. The management is also focused on the take-out food market, and the new chains are expected to expand the company’s Total Available Market.

Mr. Doshi expects sales of $111 million for the quarter, at the midpoint of the company’s guided range of $109-112 million. His EBITDA estimate currently stands at $32 million, toward the higher end of GrubHub’s guidance of $30-33 million. His earnings per share estimate is $0.20. All his estimates are in-line with the Street.

The analyst also holds a $26 price target on the stock, which reflects a 1% downside potential over the stock’s closing price on April 28. According to data collected by Thomson Reuters, of the 22 analysts currently providing recommendations on the stock, 14 are bullish on it, while the remaining eight have a Hold rating on it.