🍔 Major Sale of Grubhub
Just Eat Takeaway.com, based in the Netherlands, announced on November 12, 2024, that it has sold its U.S. branch, Grubhub, to New York's Wonder Group for $650 million. This sale marks a painful 91% drop from the $7.3 billion Just Eat paid for Grubhub just four years ago. The deal is set to close in Q1 2025, bringing Just Eat about $50 million in net cash. Wonder will also absorb $500 million in debt from Grubhub.
📉 The Changing Delivery Landscape
The food delivery industry saw a boom during the COVID-19 pandemic when people turned to online food orders. However, the situation has changed. Companies like Flink have seen their valuations drop from nearly $3 billion to under $1 billion. Just Eat has struggled to find a buyer for Grubhub since announcing its intent to sell in April 2022. Jitse Groen, Just Eat's CEO, highlighted that the sale will enhance the company's cash generation and growth capabilities.
🤝 Wonder's Ambitious Plans
Founded in 2018, Wonder aims to create a "super app" for food delivery. CEO Marc Lore stated that the acquisition of Grubhub will help achieve this vision. By integrating Grubhub's restaurant partners into their app, Wonder seeks to provide a wide selection of meal options. The company boasts over $1.7 billion in funding, supported by investors like Bain Capital Ventures and Google Ventures.
🔎 Future of Food Delivery
The food delivery market is evolving. Just Eat's decision to sell Grubhub is a response to pressures in the industry. Market shifts pose challenges for many companies that invested heavily during the pandemic. With Wonder's new strategy and Just Eat's focus on profitable markets, the future of food delivery will be exciting to watch.
What does this sale mean for the food delivery market?
