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Just Eat Takeaway is selling Grubhub to Wonder Group for $650m having bought the US delivery company for over $7bn less than four years ago.
The deal is expected to be completed in the first three months of 2025 and should bring in net proceeds of up to $50m for Just Eat, the company announced this morning.
“The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth,” said Jitse Groen, Just Eat’s founder and CEO.
The Dutch company acquired Grubhub in 2020, creating the world’s largest food delivery company outside China at the time.
But the deal drew criticism from some of Just Eat’s shareholders who argued it was a distraction and quickly pushed for it to be sold.
Grubhub was once an early leader in online delivery but has since lost share to rivals like Uber Eats.
In 2022, Just Eat said it was considering selling the subsidiary after it reported a decline in orders following a sales boom during the pandemic.
Just Eat’s share price has fallen over 85% per cent since it completed the Grubhub deal, giving it a current valuation of £1.9bn.
Marc Lore, founder and CEO of Wonder, said “bringing Wonder and Grubhub together is the next step in our vision to create the super app for meal time, re-envisioning the future of food delivery.”
Morning update
Cautious shoppers are reigning in their food bills as retailers experience a quiet period ahead of Christmas and Black Friday promotions.
Supermarket sales fell 4% in the four weeks to 2 November, according to new data by NIQ, having grown 4.7% the month before.
Shoppers are clearly still cautious despite slowing inflation with spend per shop visit down 6% on last year at £18.67.
But it seems that while shoppers may be saving on grocery essentials, they are willing to splash out on certain treats and indulgences.
Confectionery was the fastest growing category over the four-week period, up +10.5% as shoppers stocked up on sweets for Halloween and Christmas.
Almost 1 million shoppers purchased Christmas chocolate tins in the last 4 weeks and 4% of households bought advent calendars.
However, beer, wine and spirits took a hit with volumes down 0.4%, a sign that shoppers are potentially holding back until nearer the festivities.
Many are now actively waiting for price reductions and promotions, according to NIQ’s consumer Homescan survey, which found retailer vouchers and product promotions will be the key factors considered by shoppers when choosing their Christmas store.
“The start of the Christmas advertising campaigns are an opportunity for brands and retailers to entice consumers and showcase what’s new and what’s different,” said Mike Watkins, NIQ’s UK head of retailer and business insight.
“And given that it’s possible that many shoppers will ‘dine at home’ more in the next few weeks, we expect this to boost sales in premium private label food and drink.”
With shoppers looking ahead to the Christmas period, online sales grew 4.7% last month, bringing the channel’s market share up to 12.9%.
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