Wonder Set to Acquire Grubhub in $650 Million Deal

Wonder, the innovative food hall and delivery chain founded by billionaire entrepreneur Marc Lore, has announced its acquisition of Grubhub for $650 million. The deal combines $500 million in senior notes and $150 million in cash, with Wonder also raising an additional $250 million from new investors to fuel its growth.

This acquisition will allow Wonder to offer restaurants, groceries, and meal kits through a single ordering app, expanding its service offerings. Wonder aims to leverage Grubhub’s network to enhance its nationwide reach and further strengthen its food delivery platform.

Chicago-based Grubhub, owned by Just Eat Takeway (JET) since 2020, has over 375,000 businesses listed and 200,000 couriers across the U.S. However, it has faced stiff competition from DoorDash and Uber Eats in the highly competitive market, leading JET to seek a sale of the company.

Wonder, which operates multibrand restaurants in the Northeast, is expected to grow significantly from this acquisition. Currently, Wonder has 28 locations and plans to expand to 90 by next year. The company’s model, which involves prepped meals shipped to restaurants for finishing, sets it apart in the delivery market.

Post-acquisition, a curated selection of Grubhub restaurants will be available on Wonder’s app, alongside Wonder’s own restaurants and meal kits from Blue Apron, which Wonder acquired last year. Wonder restaurants will also be offered on Grubhub.

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

The deal is set to close by the first quarter of 2025, marking a significant milestone in Lore’s quest to redefine the food delivery landscape.