What to know
- Just Eat Takeaway has sold Grubhub to Wonder Group for $650 million, a stark 90% discount from its $7.3 billion pandemic-era valuation.
- The deal is expected to be completed in Q1 2025, with Just Eat expecting to gain net proceeds of up to $50 million.
- Wonder Group, led by former Walmart CEO Marc Lore, plans to integrate Grubhub into its vision of creating a “super app” for mealtime.
In a turn of events that highlights the shifting landscape of food delivery services, Just Eat Takeaway has agreed to sell Grubhub to Wonder Group for $650 million, marking a staggering 90% drop from the $7.3 billion price tag it commanded during the height of the COVID-19 pandemic.
The sale, as announced on Grubhub’s website, comes as Just Eat Takeaway aims to strengthen its position in markets where it holds a stronger competitive advantage. It acquired Grubhub in 2021 to create the world’s largest online food delivery brand outside of China, but the venture faced significant challenges in the competitive U.S. market.
Wonder Group, a New York-based food hall and delivery company founded by former Walmart CEO Marc Lore, sees this acquisition as an opportunity to revolutionize food delivery. The company plans to integrate Grubhub’s restaurant partners into the Wonder app, alongside its owned and operated restaurants and meal kits.
The substantial markdown in Grubhub’s value reflects the broader changes in the food delivery sector since the pandemic. While food delivery services experienced unprecedented growth during lockdowns, the industry has since faced challenges as consumer behavior normalized and competition intensified from rivals like UberEats and DoorDash.
Just Eat’s decision to sell comes after struggling to maintain Grubhub’s market presence in recent years. The company had reduced marketing expenditures to cut losses, which further impacted Grubhub’s competitive position in the U.S. market.
The deal, which awaits regulatory approval, will see Wonder Group take on Grubhub’s vast U.S. network and a portion of its debts. Just Eat Takeaway has assured that this transaction will not affect its 2024 guidance and will enhance its cash generation capabilities.
