Just Eat Takeaway.com (JET), Europe's largest meal delivery company, has announced the sale of its U.S. subsidiary, Grubhub, to Wonder Group for an enterprise value of USD 650 million. This amount is over USD 6.5 billion less than what JET paid for Grubhub in a deal finalized during the COVID-19 boom in June 2020 (inside.beer, 6.7.2020). The company had already attempted to sell Grubhub in 2022 but was unsuccessful; highlighting the challenges it faced in offloading the struggling U.S. unit (inside.beer, 20.4.2022).
The Netherlands-based company has faced mounting challenges since the pandemic-driven boom in food delivery subsided, leading to heightened competition and a decline in investor confidence. JET shares are currently trading at about 90% below their 2020 peak.
Wonder, founded by former Walmart and Amazon exec Marc Lore, describes itself as a “new kind of food hall,” offering made-to-order meals crafted by renowned chefs and restaurants. Initially recognized for its fleet of delivery trucks, the New York-based startup has since shifted its focus toward a more brick-and-mortar-oriented model.
JET's decision to sell Grubhub reflects its strategy to focus on markets where it holds a competitive advantage. The company hopes the sale will bolster its liquidity, improve its capital structure, and accelerate growth. CEO Jitse Groen stated, "The sale of Grubhub to Wonder will increase the cash generation capabilities of Just Eat Takeaway.com and accelerate our growth. This deal delivers the right home for Grubhub and its employees."
Grubhub, which processed 237 million orders in 2023 with gross transaction value of EUR 8.06 billion, has struggled to maintain profitability. In 2023, it reported an adjusted EBITDA of EUR 94 million but posted a negative free cash flow of EUR 77 million.
The acquisition aligns with Wonder's ambition to build a "super app" for food services. Led by former Walmart executive Marc Lore, Wonder operates a chain of 28 fast-casual restaurants in New York and New Jersey, with plans to expand to 100 locations by 2026. Known for its innovative "Fast Fine" dining approach, Wonder has been steadily growing its presence in the food delivery sector, including its recent acquisition of meal kit maker Blue Apron.
"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," Lore said.
The sale underscores the tough environment for food delivery companies, which have faced regulatory pressures in key U.S. cities. Fee caps on commissions charged by delivery services have added to the financial strain. Grubhub’s operations, based in Chicago, Illinois, will now integrate with Wonder’s existing platform, which seeks to redefine how meals are delivered and experienced.
While the deal represents a significant financial loss for JET it provides an opportunity for the company to pivot and strengthen its core operations. For Wonder, acquiring Grubhub marks a critical step in its mission to innovate within the food delivery space. Both parties anticipate a seamless transition, with regulatory approval expected in early 2025.
