Just Eat sells GrubHub to startup for $650m
The delivery company had bought GrubHub in 2021 for $7.3bn (£5.7bn)
Just Eat has struck a deal to sell GrubHub to food delivery startup Wonder Group for $650m (£513m).
The transaction is expected to complete in Q1 2025, with Just Eat expecting profits from the deal to be as much as $50m (£39m).
Jitse Groen, founder and CEO of Just Eat, said: “The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and will accelerate our growth. 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.com business.”
Founded by serial entrepreneur Marc Lore, Wonder offers “multi-restaurant ordering”, a first in the industry where customers can order from upwards of 30 restaurants in a single order, with each item being made-to-order in a sequenced fashion so that they finish simultaneously and can be delivered to the customer together.
Grubhub is a US food ordering and delivery marketplace which was acquired by Just Eat in 2021 for $7.3bn (£5.7bn). The food delivery company recently saw sales declining 11% in the third quarter, which attributed to an increase in food prices and a competitive market.
Regarding the acquisition, Lore said: “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 meal time, re-envisioning the future of food delivery.”
Howard Migdal, Grubhub CEO, added: “I am incredibly excited for Grubhub to join forces with Wonder and bring more value to our diners, merchants and delivery partners.
“Since our earliest days, Grubhub has helped restaurants open their doors to new customers, while introducing diners to new cuisines. That’s why I’m confident that Grubhub will complement Wonder’s mission to make great food more accessible and that together we will create remarkable dining experiences for more customers across the country.”
