Just Eat is selling Grubhub for $650 million, just four years after buying the US food delivery app for $7 billion.
Just Eat Takeaway.com, Europe’s largest meal delivery company, bought Grubhub in 2020, marking its entry into the US market and creating the world’s largest food delivery company outside China. But within a year of completing the deal, amind increased competition and a fading pandemic home delivery boost, it began looking to offload it.
This week it finally found a buyer, agreeing Grubhub’s sale to delivery-focused restaurant and food hall chain Wonder.
The sale “will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth”, said Just Eat Takeaway.com CEO and founder Jitse Groen. “This deal delivers the right home for Grubhub and its employees.”
For Wonder, the acquisition “continues our mission to make great food more accessible” said 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,” he added.
“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.”
Wonder operates 27 fast-casual restaurants in the north-east US that offer multiple menus and cuisines to diners out of a single location. The company has raised $1.5bn since its founding, and is planning to operate a total of 100 locations by January 2026.
The company – run by former CEO of Walmart’s e-commerce business, Jet.com founder and NBA team Minnesota Timberwolves owner Marc Lore – is also trialling versions of its restaurants within four Walmart stores.
Last month, Amazon’s global grocery stores chief Tony Hoggett announced his departure from the ecommerce giant after less than three years to join Wonder as its chief operating officer.
Just Eat shares rallied in the wake of the announcement.
“It is worth taking a step back and considering the destruction of value which has taken place,” said AJ Bell investment director Russ Mould of the sale.
“The whole Grubhub debacle will inevitably leave some scars, but investors seem prepared to focus on the future and the promised boost to cash generation and growth for the remainder of the group.”
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