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Netherlands-based food delivery company Just Eat Takeaway.com announced the sale of its U.S. business Grubhub to New York-based Wonder Group for $650 million. This deal represents a significant decrease from the $7.3 billion Just Eat Takeaway paid for Grubhub four years ago.
Deal Details
The transaction is set to close in the first quarter of 2025, with Just Eat Takeaway expecting net proceeds of $50 million. Wonder will also assume $500 million of Grubhub’s debt. Wonder, originally a food delivery business that shifted focus to operating delivery-focused restaurants in New York and Philadelphia, sees this acquisition as an opportunity to enhance its offerings.
Challenges in the Food Delivery Sector
The sale of Grubhub comes at a time when the food and grocery delivery sector is facing profitability challenges. Venture capital investments surged in the aftermath of the COVID-19 pandemic, but many companies have struggled to maintain sustainable business models. Just Eat Takeaway’s decision to divest from Grubhub is part of its strategy to streamline operations and prioritize profitability.
Future Outlook
Wonder’s CEO, Marc Lore, envisions creating a super app for food delivery by integrating Grubhub’s restaurant partners into the Wonder app. This move aligns with Wonder’s goal of reshaping the future of food delivery and offering a comprehensive mealtime solution. With substantial funding and support from prominent investors, Wonder is poised to drive innovation in the competitive food delivery market.
