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Just Eat Takeaway agrees to sell US subsidiary to Wonder Group for USD650M
(MENAFN) European food delivery giant Just Eat Takeawayhas agreed to sell its U.S. subsidiary, Grubhub, to Wonder Group for USD650 million, a stark decline from the USD7.3 billion it spent to acquire the platform just three years ago. Wonder Group, a New York-based food ordering company that specializes in "fast fine" dining, will take ownership of Grubhub under a deal that includes USD150 million in cash and USD500 million in senior notes. This sale follows a period of scrutiny for Just Eat Takeawayas it explores ways to offload Grubhub, with the company acknowledging that it had been "actively exploring" the partial or full sale for some time.
Just Eat's purchase of Grubhub in 2020, at the height of the COVID-19 pandemic when demand for food delivery services surged, was seen as a strategic move to expand its reach in the U.S. However, the company now seeks to divest from Grubhub to focus on markets where it believes it has stronger competitive advantages. The decision comes as Just Eat Takeawaylooks to boost its growth and cash generation by reallocating resources to countries where it operates most effectively, including 18 other nations outside of the U.S.
The sale marks a significant shift for Just Eat Takeaway.com, which had previously invested heavily in Grubhub to strengthen its position in the American market. The company’s decision to exit this venture reflects the evolving dynamics within the global food delivery sector, where competition is fierce, and operational challenges persist. Grubhub’s future under Wonder Group could shape the next phase of the platform's development in a competitive and rapidly changing industry.
The deal also signals a retrenchment of Just Eat Takeaway.com’s strategy, as the company focuses on enhancing its operations in regions where it sees the greatest potential for long-term growth. The move to sell Grubhub highlights the broader trends of consolidation and strategic realignment occurring within the global food delivery market.
Just Eat's purchase of Grubhub in 2020, at the height of the COVID-19 pandemic when demand for food delivery services surged, was seen as a strategic move to expand its reach in the U.S. However, the company now seeks to divest from Grubhub to focus on markets where it believes it has stronger competitive advantages. The decision comes as Just Eat Takeawaylooks to boost its growth and cash generation by reallocating resources to countries where it operates most effectively, including 18 other nations outside of the U.S.
The sale marks a significant shift for Just Eat Takeaway.com, which had previously invested heavily in Grubhub to strengthen its position in the American market. The company’s decision to exit this venture reflects the evolving dynamics within the global food delivery sector, where competition is fierce, and operational challenges persist. Grubhub’s future under Wonder Group could shape the next phase of the platform's development in a competitive and rapidly changing industry.
The deal also signals a retrenchment of Just Eat Takeaway.com’s strategy, as the company focuses on enhancing its operations in regions where it sees the greatest potential for long-term growth. The move to sell Grubhub highlights the broader trends of consolidation and strategic realignment occurring within the global food delivery market.
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