Just Eat has completed the sale of its US subsidiary, Grubhub, to the startup food delivery company Wonder for $650 million (£502.5 million), marking a major shift in the company’s strategy.
The sale arrives over two years after Just Eat initially signalled its intention to offload Grubhub, which faced challenges in maintaining momentum post the pandemic-driven surge in delivery services. The decision to sell comes as Just Eat aims to streamline its operations and focus on bolstering growth, a strategy highlighted by the sale’s impact on its share price, which has increased nearly 20% since the transaction was announced.
Chief Executive Officer Jitse Groen of Just Eat articulated that this transaction is expected to enhance the company’s ability to generate cash and thereby expedite 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,’ Groen commented.
On the other side of the transaction, Wonder’s CEO Marc Lore expressed enthusiasm about the acquisition, stating, ‘Wonder’s acquisition of Grubhub continues our mission to make great food more accessible.’ Lore further elaborated on the strategic benefits, explaining that by integrating Grubhub’s restaurant partners into the Wonder app alongside its existing offerings, the company aims to redefine the future of food delivery, aspiring to create a “super app” for meal times.
This development comes as part of Just Eat’s broader strategy to expand its influence within the UK and beyond. The company recently launched a partnership with Waitrose in October, part of a multi-year agreement designed to enhance the visibility of the high-end retailer within the rapidly growing on-demand grocery and convenience market.
The sale of Grubhub represents a calculated move by Just Eat to concentrate its resources and align its strategies for future growth. Meanwhile, for Wonder, the acquisition is a step towards broadening its food delivery capabilities and innovating the customer experience.
