Just Eat, which begun actively exploring the sale of Grubhub in April 2022, less than a year after buying it, says the transaction will enable it to focus on investment in its strongest markets.
According to CityAM, Grubhub, which is not yet profitable, has been struggling with declining order volumes and the impact of delivery fee caps in New York, which add 15% onto the cost of every order.
The sale represents a 90% discount on what Just Eat paid in 2021— or, adjusting for inflation, a 94% discount.
“The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth,” says Jitse Groen, founder and CEO of Just Eat Takeaway.com.
“This deal delivers the right home for Grubhub and its employees. I would like to thank everyone at Grubhub for their contributions to both Grubhub and the wider Just Eat Takeaway.com business.”
Wonder is a US food delivery startup that describes itself as a ‘new kind of food hall’.
The ‘super app’ operates a collection of delivery-first restaurants across the US and has worked with high-profile chefs including Bobby Flay.
Its acquisition of Grubhub comes after it bought meal kit business Blue Apron last year.
“Wonder’s acquisition of Grubhub continues our mission to make great food more accessible,” says Marc Lore, founder and CEO of Wonder.
“As we enhance our customer experience with selection, speed, and variety, we’re excited to soon offer a curated selection of Grubhub’s restaurant partners directly in the Wonder app, alongside our owned and operated restaurants and meal kits.
“Bringing Wonder and Grubhub together is the next step in our vision to create the super app for mealtime, re-envisioning the future of food delivery.”
Completion of the deal is expected during the first quarter of 2025, subject to regulatory approvals.
Shares in Just Eat rose 19% in early trades following news of the sale, CityAM reports.
