• Just Eat Takeaway Divests from the US Market: European food delivery giant sells Grubhub to US-based Wonder.
• Grubhub Sold for $650 Million: The sale includes $500 million in senior notes and $150 million in cash.
• Strained US Market Prompts Sale: Challenges in the US prompted Just Eat’s decision to offload Grubhub.
• Deal Expected to Close by Early 2025: Just Eat affirms no material liabilities remain with the sale.

In a significant move within the food delivery industry, Just Eat Takeaway has announced the sale of its American division, Grubhub, to the US-based company Wonder for a total of $650 million. This decision reflects Just Eat Takeaway’s strategy to streamline its business and refocus on European markets after acquiring Grubhub during a pandemic-driven boom in 2020. Wonder, a rapidly expanding food-delivery startup led by ex-Walmart executive Marc Lore, is set to take on Grubhub as part of its broader growth ambitions.

The deal, first hinted at by the Wall Street Journal, marks the end of Just Eat’s US venture. Since the acquisition, Just Eat has faced numerous operational challenges in the United States, including complex fee caps in cities like New York, which restricted their ability to charge restaurants more than 15% in delivery fees. This cap reportedly cost the company around $100 million annually, making it difficult to sustain profitable operations.

The $650 million enterprise valuation of Grubhub comprises $500 million in senior notes and an additional $150 million in cash, with analysts at J.P. Morgan previously estimating Grubhub's worth at a higher $1.2 billion. While the sale price is lower than earlier projections, analysts anticipate that the transaction will be received positively by the market.

The transfer of ownership is anticipated to finalise in the first quarter of 2025, and Just Eat Takeaway has assured investors that the deal will not affect its current financial guidance. Moreover, the company confirmed that it has no material liabilities tied to Grubhub following this sale, allowing it to focus on its core markets in Europe.

This transaction underlines Just Eat Takeaway’s commitment to strengthening its position in markets where it holds a competitive advantage and reducing its exposure to volatile regions like the United States.

Source: (Investing.com, Reuters)