Grubhub Sells for $650M, Down from $7.3B in 2020
Just Eat Takeaway.com has agreed to sell Grubhub to Wonder Group for $650 million, a significant decrease from the $7.3 billion it paid in 2021. The deal includes $150 million in cash and the transfer of $500 million in senior notes to Wonder.
This sale reflects the challenges Grubhub has faced in the competitive U.S. food delivery market, where it has struggled against larger rivals like DoorDash and Uber Eats. The transaction is expected to close in early 2025, pending regulatory approvals.
Wonder, founded by former Walmart executive Marc Lore, plans to integrate Grubhub's services into its platform, aiming to create a comprehensive "super app" for mealtime that includes restaurant delivery, meal kits, and groceries. This acquisition follows Wonder's purchase of meal kit provider Blue Apron in 2023.
Just Eat Takeaway.com stated that the sale would enhance its cash generation capabilities and allow it to focus on markets where it holds a stronger position. Following the announcement, the company's stock rose by 20% in Amsterdam trading.
This move marks a significant shift in the food delivery industry, highlighting the challenges of maintaining profitability and market share amid intense competition. The integration of Grubhub into Wonder's platform could reshape the landscape of food delivery services in the U.S.
