Just Eat Takeaway sells Grubhub for $650 million, just 3 years after buying the app for $7.3 billion
European food delivery giant Just Eat Takeaway.com is selling Grubhub for $650 million, a fraction of the billions it spent to buy the US platform just three years ago.Wonder Group, a New York-based food ordering company that touts “fast fine” dining, is set to be Grubhub’s new owner.Under terms of the deal, announced Wednesday, Wonder will acquire Grubhub from Just Eat Takeaway.com for $150 million in cash and $500 million in senior notes.That’s far less than the price tag on Grubhub’s last sale.
Back in 2020, during the early days of the COVID-19 pandemic and a surge in demand for takeout meals, Just Eat agreed to buy Grubhub for $7.3 billion — reportedly beating Uber to a merger — in a transaction that was later finalized in 2021.Amsterdam-based Just Eat Takeaway.com acknowledged Wednesday that it had been “actively exploring” the partial or full sale of Grubhub for some time, citing prior announcements from the company.Just Eat Takeaway.com added that selling Grubhub to Wonder would increase growth, cash generation and support investment in countries where it “has the greatest competitive advantage.” Beyond the US the company currently operates in 18 other countries.The transaction is expected to close during the first quarter of 2025, subject to regulatory approval and other customary conditions.
When completed, Just Eat Takeaway.com says it will retain no material liabilities related to Grubhub.“This deal delivers the right home for Grubhub and its employees,” Just Eat Takeaway.com CEO Jitse Groen said in a statement.Shares of the company were up over 15% by midday Wednesday.The CEOs of Wonder and Grubhub, Marc Lore and Howard Migdal, also sounded positive notes Wednesday — with both noting that the deal would aid Wonder’s mission to “make great food more accessible” and enhance customer experiences.Wonder, founded by Lore, bills itself as a “new kind of food hall” and delivers made-to-order meals from well-known chefs ...