The food delivery industry is undergoing significant transformation as companies prioritise profitability over expansion. Rising costs, changing consumer behaviours, and market saturation have driven consolidation and strategic divestments across the sector.
At this point in time, Just Eat Takeaway.com, a global online food delivery company, has finalised the sale of its US-based subsidiary Grubhub to Wonder. This move marks a pivotal step in the Dutch food delivery giant’s efforts to streamline operations and concentrate on core markets, particularly in Europe, where the company maintains a strong foothold.
This announcement follows the company’s delisting from the London Stock Exchange late last year to cut costs.
The sale of Grubhub
After a wait of over two years, the deal assigns Grubhub an enterprise value of $650 million, but the company carries $500 million in debt. Factoring in other M&A costs, Just Eat Takeaway will net only $50 million, a fraction of the $7.3 billion valuation Grubhub had when it was acquired in an all-stock deal in 2021. Notably, it acquired Grubhub to establish a strong foothold in the competitive US food delivery space. However, intense competition from players like Uber Eats and DoorDash and slowing post-pandemic growth in the sector made profitability elusive.
The acquisition by Wonder Group includes all assets and the assumption of all material liabilities of Grubhub, with no contingent element to the sale consideration. Announced in November 2024, the transaction is part of Just Eat Takeaway’s strategy to focus on markets where it holds a competitive edge.
The sale is anticipated to enhance the company’s gross transaction value (GTV) growth and free cash flow generation, as well as positively impact its capital structure and liquidity position.
A brief about Wonder
The food startup Wonder was founded and led by e-commerce veteran Marc Lore with experience at Amazon and Walmart. Wonder has raised around $1.7 billion to date at a $40 billion valuation and plans to go public in the coming years. Grubhub gives it a national footprint despite operating with heavy debts. It remains to be seen if Wonder manages to turn its condition. It can give Grubhub a fresh start to regain its presence.
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