Just Eat Takeaway has sold its U.S. unit, Grubhub, to the food-delivery startup Wonder for $650 million, a significant drop from the $7.3 billion it paid in 2020. The sale, which includes $500 million in senior notes and $150 million in cash, comes after challenges such as slowing growth and regulatory issues. This move ends Just Eat Takeaway's troubled venture in the U.S. market, which resulted in a substantial loss of shareholder value.
Just Eat Takeaway has sold Grubhub to the food delivery startup Wonder for $650 million, a significant loss from the $7.3 billion it paid in 2021. The sale aims to boost Just Eat's cash generation and growth, while Wonder plans to integrate Grubhub's restaurant partners into its app. The deal reflects the challenges faced by food delivery platforms post-pandemic, as consumer demand shifts and competition intensifies.
New York-based startup Wonder is acquiring Chicago-based Grubhub for $650 million, a significant drop from the $7.3 billion Just Eat Takeaway paid in 2021. The sale, expected to close in early 2025, includes $500 million in senior notes and $150 million in cash. Grubhub has faced increased competition from Uber Eats and DoorDash, as well as restaurants managing their own deliveries. The acquisition aims to enhance Wonder's food delivery services, though the impact on Grubhub's Chicago operations remains unclear.
Just Eat Takeaway has agreed to sell its U.S. unit, Grubhub, to the food-delivery startup Wonder for $650 million, significantly less than the $7.3 billion it paid in 2020. The sale, which includes $500 million in senior notes and $150 million in cash, comes as Just Eat seeks to exit the U.S. market due to challenges like slowing growth and fee caps. The deal is expected to close in early 2025, and Just Eat's shares rose 20% following the announcement.
Just Eat Takeaway is selling its US arm, Grubhub, to Wonder for $650 million, marking a significant loss from its $7.3 billion purchase in 2020. The sale comes as Just Eat faces declining demand post-pandemic and increased competition. The deal, expected to close in early 2025, aims to enhance Just Eat's cash flow and growth, while Wonder plans to integrate Grubhub into its vision of a 'super app' for food delivery.
Wonder, a food-delivery startup led by former Walmart executive Marc Lore, is reportedly in advanced talks to acquire Grubhub from Just Eat Takeaway.com. The European company had purchased Grubhub in 2020 for $7.8 billion, but the current deal is expected to value Grubhub at less than $1 billion. This acquisition could enhance Wonder's revenue and provide access to delivery drivers and technology. Neither Grubhub, Just Eat Takeaway, nor Wonder have commented on the potential deal.
Grubhub, the food delivery service, is laying off about 400 workers, or 15% of its corporate staff, including around 120 layoffs in its Chicago headquarters. The CEO announced the cuts were necessary to stay competitive and make the company more agile and better able to invest for growth. The layoffs do not impact drivers or employees at restaurants that work with Grubhub. The company, owned by Just Eat Takeaway.com, continues to lose money and is up for sale. Laid-off workers will get 16 weeks' severance and outplacement help.
