![]() Just Eat provides deliveries in Europe, Australia, Israel, New Zealand, Canada, Mexico and Brazil. Grubhub’s orders grew 28% over the prior year in April and May, while Just Eat ’s orders grew 41%. The coronavirus pandemic has boosted sales for both Just Eat and Grubhub, with restaurants shuttered, more people staying home and ordering takeout food. Grubhub has 23 million active users and reported revenue of $1.3 billion. Combined, those companies have 48 million active users and reported revenue of $1.7 billion in 2019. In January, bought its British rival Just Eat for $7.8 billion. Grubhub acquired Seamless in 2013, while DoorDash bought the upscale service Caviar last year. Aggressive discounting and heavy marketing costs to win new users have also taken a toll on profits, and restaurants have been pushing for lower fees.Īs a result, consolidation has been a constant in the industry. ![]() But they’ve been joined by a host of others, including Uber Eats, DoorDash, Deliveroo and Postmates.Ĭustomers jump freely between the services, which makes it difficult to deliver stable sales. and Grubhub, both founded in the early 2000s, were some of the earliest entries in the sector. The merger will let the companies share technology and marketing costs and provide the broadest range of services to restaurants and consumers, the companies said. Matt Maloney, Grubhub’s founder and CEO, will join Just Eat ’s board and will lead the company’s North American business, the companies said. That doesn’t mean we are interested in doing any deal, at any price, with any player,” Uber said in a statement. “Like ridesharing, the food delivery industry will need consolidation in order to reach its full potential for consumers and restaurants. food delivery business, but could have run into snags with regulators. If Uber had succeeded in buying Grubhub, it would have given the companies control over a majority of the U.S. Grubhub shares closed at $59.05 Wednesday. ![]() Grubhub shareholders will receive depository receipts representing a portion of shares in the new company. Just Eat said it will acquire 100% of Grubhub’s shares at an implied value of $75.15 per share. Combined, they will be the largest restaurant delivery company outside China. Just Eat and Grubhub processed 593 million restaurant orders in 2019 and have about 70 million users worldwide. ![]()
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