Just Eat has finalized the sale of its US division, Grubhub, to Wonder for $650 million (£502.5 million), significantly below its initial purchase price.
- Originally acquired for $7.3 billion (£5.73 billion), Grubhub was sold after struggling post-pandemic.
- The transaction marks more than two years since Just Eat expressed its intention to offload Grubhub.
- Following the sale’s announcement, Just Eat’s stock price surged nearly 20%.
- The sale is intended to enhance Just Eat’s cash flow and catalyze growth, aligning with its ongoing expansion in the UK.
Just Eat has completed the sale of its US-based delivery service, Grubhub, to the startup company Wonder for a sum of $650 million (£502.5 million). This sale reflects a considerable financial decline from the $7.3 billion (£5.73 billion) initially paid for Grubhub. Just Eat made this decision following more than two years of contemplation on selling Grubhub, largely due to the challenges faced after the pandemic-induced rise in rapid delivery demand.
The sale’s announcement triggered a positive response in the stock market, with Just Eat’s share price increasing by almost 20%. This financial maneuver is part of a broader strategy, as stated by Just Eat’s founder and CEO, Jitse Groen, who remarked that the sale would boost the company’s cash generation capabilities and accelerate its growth. Groen commented, “This deal delivers the right home for Grubhub and its employees.“
The buyer, Wonder, is led by founder and CEO Marc Lore, who emphasized that acquiring Grubhub is a step towards making quality food more accessible. Lore highlighted that the integration of Grubhub’s offerings with Wonder’s existing food services is aimed at enhancing customer experiences through variety and speed. Lore’s vision includes creating a “super app for mealtime,” combining services from Grubhub with Wonder’s restaurant partners and meal kits.
Aside from this transaction, Just Eat continues its growth trajectory in the UK market. Notably, Just Eat recently announced a collaboration with Waitrose, intended to strengthen Waitrose’s position in the on-demand grocery and convenience sectors.
This strategic decision to sell Grubhub comes as Just Eat navigates the evolving landscape of food delivery services, seeking to optimize its operations and financial health.
The sale of Grubhub marks a pivotal shift for Just Eat, aiming to bolster financial health while expanding its market reach.
