Just Eat Offloads Grubhub with Over £5bn Loss

Just Eat Takeaway has sold its US subsidiary Grubhub to start-up food delivery company Wonder for $650 million (£502.5 million), marking a substantial loss from the $7.3 billion (£5.73 billion) it paid for the business four years ago.

This sale comes after more than two years of attempts to divest Grubhub, whose performance struggled post-pandemic as demand for rapid delivery services waned.

Despite the financial loss, the announcement caused Just Eat’s share price to jump by almost 20%, signaling investor optimism about the company’s renewed focus and streamlined operations.

Just Eat CEO Jitse Groen commented on the deal, saying:

“This deal delivers the right home for Grubhub and its employees. I would like to thank everyone at Grubhub for their contributions to both Grubhub and the wider Just Eat Takeaway business. The sale will increase our cash generation capabilities and accelerate our growth.”

Meanwhile, Wonder CEO Marc Lore expressed enthusiasm for the acquisition:

“Wonder’s acquisition of Grubhub continues our mission to make great food more accessible.

“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. Bringing Wonder and Grubhub together is the next step in our vision to create the super app for mealtime, re-envisioning the future of food delivery.”

This strategic shift aligns with Just Eat’s ongoing growth in the UK, including a recent partnership with Waitrose announced in October. This multi-year deal aims to strengthen Waitrose’s position in the on-demand grocery and convenience sectors, further solidifying Just Eat’s foothold in its home market.